|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||13.85 - 14.05|
|52 Week Range||7.47 - 14.67|
|PE Ratio (TTM)||13.92|
|Forward Dividend & Yield||0.28 (2.14%)|
|1y Target Est||N/A|
On April 18, BHP Billiton (BHP) released its operational review of the nine months ended March 2018. Iron ore (PICK) volumes are key to BHP Billiton’s revenues and earnings, as iron ore is the largest commodity produced by the company.
April 18, 2018, belonged to commodity stocks (COMT), some of which saw their highest one-day gains in months. Among the iron ore and diversified companies, Glencore (GLNCY) surged 7.7%, and Anglo American (AAUKY) saw price gains of 6.2%. BHP Billiton (BHP), Rio Tinto (RIO), Vale SA (VALE), and Cleveland-Cliffs (CLF) rose 3.3%, 4.0%, 4.2%, and 4.4%, respectively.
BHP Billiton (BHP) trims iron-ore output guidance for fiscal 2018. Northward movement in the price of this major steel-making product is expected to drive the company's performance.
Cleveland-Cliffs (CLF) announced on April 6, 2018, that it expects to close its Australian operations by June 30, 2018. The main factors driving this decision were as follows: the increasingly discounted prices for lower-content iron ore the quality of the remaining iron ore reserves at its Asia-Pacific operations the lack of a legitimate offer from a qualified buyer
RIO DE JANEIRO/BRASILIA, April 16 (Reuters) - Brazilian miner Vale SA said on Monday that total iron ore output slipped 4.9 percent year-on-year in the first quarter to 81.95 million tonnes, although the company maintained its 390 million tonne target for 2018. The world's top iron ore producer said that heavy rains in the first three months of the year impacted its output. Meanwhile, iron ore sales rose 9 percent in the quarter compared to the same period last year, the company said in a securities filing.
Brazilian miner Vale SA said on Monday that total iron ore output reached 81.953 million tonnes in the first quarter and reiterated its guidance of 390 million tonnes for 2018, according to a securities ...
While Cleveland-Cliffs’ (CLF) Asia-Pacific Iron Ore (or APIO) segment doesn’t contribute much to its revenue and earnings, it still accounts for many of its stock price movements via changes in seaborne iron ore prices.
Firstly, as China is the world’s largest copper consumer, anything negative for the Chinese economy is a bearish driver for industrial metals. BHP Billiton (BHP), Vale (VALE), and Rio Tinto (RIO) rely heavily on China’s metal appetite. A US-China trade war could impact the Chinese economy.
During Vale Day on December 6, 2017, Vale (VALE) CFO (chief financial officer) Luciano Siani Pires said that the company deserves a valuation re-rating due to its improved predictability, transparency, and better governance practices. Currently, Vale has a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 5.7x, 10.0% lower than its five-year average.
Vale (VALE) is optimistic about the growing popularity of electric vehicles. Vale’s executive director of base metals, Jennifer Maki, said the market forecast suggests that electric vehicles could represent 7%–20% of the global auto market by 2025, up from 1% in 2017. The company wants to preserve its optionality in nickel ahead of the expected boom in electric vehicles (TSLA).
Vale (VALE) believes that China’s fight against pollution has led to a huge variance between low-grade and high-grade material. It also expects the spreads between the 62% iron ore index and lower-grade ores to remain wide.
Vale (VALE) has come a long way in its corporate governance policies and transparency. The corporate restructuring was concluded in August 2017, when Valepar was merged into Vale. This move was seen as a major governance overhaul, as it will enhance transparency and equal rights for all shareholders and reduce the potential for government interference. These steps were seen as positive by investors and the company’s stock price rose in reaction to the restructuring announcement.
In its 1Q18 results, Vale (VALE) stated that net debt reduction has enabled it to adopt an aggressive dividend policy. Investors should note that Vale reduced its net debt from $25 billion in 2016 to $18.1 billion in 2017. It also received net proceeds of $3.7 billion from the sale of its fertilizer assets in January 2018, and the company was set to receive its Nacala Corridor project financing by March 2018.
On March 29, 2018, Vale (VALE) announced a new dividend policy set to take effect in its 1H18 results. Moody’s expects Vale to generate free cash flow of $3 billion–$4.5 billion from 2018 through 2020.
After holding firm for the first two months of the year, iron ore prices have started to give way, falling more than 20% since the beginning of March 2018. Vale (VALE) and other iron ore miners (XME) also took a tumble in March 2018. After rising 12.3% in the first two months of the year, Vale fell 7.4% in March.
Could Toned-Down Tariffs Help Cleveland Cliffs in 2018? Since China consumes more than 70% of seaborne-traded iron ore (COMT), it’s important to track its demand patterns to get a cue for prices. In this article, we’ll discuss iron ore imports and Chinese steel production to assess its future outlook.
Brazilian pension fund Previ is not likely to sell its shares in Vale SA in a public offering this year, a person with knowledge of the matter said on Wednesday, a week after the iron ore miner announced a more generous dividend policy. Holding on to its full Vale stake would allow Previ to take advantage of Vale's growing dividends as earnings are seen improving, the source said, requesting anonymity to discuss the matter freely. On March 29, Vale approved a dividend policy that will pay shareholders 30 percent of adjusted earnings before interest, tax, depreciation and amortization (Ebitda).
Could Toned-Down Tariffs Help Cleveland Cliffs in 2018? After remaining firm in the first two months of 2018, iron ore prices have been tumbling lately. March 2018 turned out to be a weak month for iron ore miners (XME) and iron ore prices.
Aggregate financing in China (MCHI), which reflects the total funds provided by a financial system to its nonfinancial sectors and households, was ~1.2 trillion yuan in February 2018 compared to ~3.1 trillion yuan in January 2018. China’s new bank loans reached 839.3 billion yuan in February 2018 compared to a record 2.9 trillion yuan in January 2018. The M2 money supply, which includes cash, checking deposits, savings deposits, money market mutual funds, and other time deposits, grew 8.8% in February 2018 from February 2017. It was higher than 8.6% growth in January 2018 and 8.1% growth in December 2017.
In 2017, Chinese steel prices increased ~30%. Domestic steel prices have more than doubled since their lows of late 2015. Last year, a strong demand environment led by the uptick in construction activity supported Chinese steel prices.
In yet another sign of the weakening demand for iron ore, China’s iron ore imports fell 15.7% sequentially in February 2018 and were flat year-over-year (or YoY). While seasonal demand usually returns in China in March and April, it remains to be seen if that will be the case in 2018.