Cliffs Natural Resources (CLF) reported revenues of $476 million for 4Q15, a decline of 54% YoY. The revenues for 2015 also dropped 40% YoY to $2 billion.
BHP announced an impairment charge of $4.9 billion post-tax on its US Onshore business. After this, the carrying value of the business will be ~$16 billion.
Lowering costs is vital in price environments wherein copper prices are hitting multiyear lows, and copper volumes are key for copper segment revenues.
BHP Billiton is facing pressure in all the commodity businesses it’s involved in. At spot prices, free cash flow doesn’t cover the company’s dividends.
Big iron ore companies maintain a strategy of increasing volumes in order to reduce the pressure on revenues, cash flows, and ultimately the bottom line.
BHP Billiton (BHP) (BBL) reported mixed production results for the second quarter of its fiscal 2016 on January 20, 2016. Its fiscal year ends on June 30.
China’s (MCHI) economic slowdown is the biggest challenge for global metal and mining companies, which is why iron ore investors should keep a close eye on the Chinese economy.
The British pound fell on January 5, 2016. It came close to an eight-month low against the US dollar even though the construction activity sector rebounded in December.
Copper is one of the four key pillars for BHP Billiton. It contributes to 23% of group production and 24% of underlying earnings before interest and tax.
Rio Tinto’s (RIO) CEO Sam Walsh seems optimistic about China’s growth. He says China’s urbanization, government efforts, and infrastructure investment should continue to push it in the right direction.
Anglo American embarked on operational discipline improvements starting in 2013. It will focus on achieving $2.1 billion in improvements in 2016 and 2017.
Anglo American has announced a transformation in its assets. Its focus will now be on “Priority 1” assets, which can deliver cash flow through the cycle.
At Vale Day on December 1, 2015, Vale lowered its iron ore production guidance due to a weak demand outlook and the fallout from the November 5 Samarco accident in Brazil in which two dams collapsed.
The output from Samarco contributes ~2% of the global seaborne iron ore market. The impact of the production loss from this operation should not be enough to move the needle up on iron ore prices.
Cliffs Natural Resources (CLF) reported revenues of $593 million for 3Q15, a decline of 39% YoY. A decline in revenues impacted the company’s EBITDA negatively.
Approximately 7% of analysts tracking Cliffs Natural Resources (CLF) rate it a “buy” or some equivalent. Approximately 53% rate the company a “hold” or an equivalent…
Iron ore volumes are key to Rio Tinto’s (RIO) iron ore segment revenue. The other factor, seaborne iron ore prices, is determined by demand and supply dynamics.
As there is still more low-cost supply ready to come online, the biggest such project being Vale’s low-cost S11D, there is a risk of some big iron ore miner becoming a marginal producer going forward.
Australia’s billionaire Gina Rinehart’s $10 billion Roy Hill iron ore project expects to start shipping iron ore to world markets starting in October 2015.
When Vale’s S11D project comes online, it could be a further game changer in the iron ore market. Its cash costs per ton are pegged at close to $11 per ton.
Iron ore prices fell 49% in 2014, which was reflected in the share price performance of major miners. In this series, we’ll discuss the position of various iron ore players on the cost curve relative to iron ore prices.
The British pound–US Dollar pair traded with a positive bias on the back of strong labor numbers. It posted a high of 1.5529, ending at 1.5493 on September 16—still a 0.98% increase from its opening level.
London Metal Exchange copper inventory was steady in April, but it’s up more than 65% since the start of the year. Copper’s supply continues to be more than its demand.
Brent crude oil price is a leading indicator for nitrogenous fertilizer revenues. When the price of Brent oil rises, it’s generally followed by a rise in ammonia prices.
