Global miner BHP Billiton Ltd
(ASX:BHP) has reported a 10 per cent fall in iron ore production in the June 2009 quarter compared to the June 2008 quarter.
For the year however, iron ore production rose 2 per cent.
The company says China’s inventory build is almost complete, and there is evidence that re-stocking has commenced in North America, Europe and Japan.
The miner says overall its production result for the year was solid despite weak and volatile demand conditions.
BHP says it achieved annual production records for petroleum, copper cathode and iron ore.
And says for the quarter production increased for 12 major commodities including metallurgical coal, petroleum, copper and energy coal. BHP’s net profits have been increasing year on year for the past four years.
National Australian Bank Ltd (ASX:NAB) has today announced a $2.75 billion capital raising to maintain balance sheet strength and flexibility.
It will undertake a share placement to institutional investors at a minimum price of $21.20 a share to raise $2 billion, and offer a share purchase plan to raise a further $750 million.
In an update to the market the bank says cash earnings in the June quarter came to $900 million.
The company says asset quality continued to weaken across all businesses reflecting the economic cycle, with its bad loan rate rising to 177 basis points in the June quarter from 138 basis points in the March quarter.
The group charge for bad and doubtful debts was $1.06 billion in the June quarter, with a specific charge of $859 million. NAB’s 2008 net profit remained relatively unchanged from the year before.
Funds manager City Pacific Ltd (ASX:CIY) has lost its court battle to remain in control of the $630 million City Pacific First Mortgage Fund.
On Monday the Federal Court handed down judgement in favour of rival financial group Balmain Trilogy, who won support from unit-holders to remove City Pacific as responsible entity for the fund.
According to The Sydney Morning Herald the fund was the main income earner for City Pacific, generating $30 million in management fees each year.
The paper reports that City Pacific had attempted to please unit-holders by lowering its fees, but at a meeting on June 25 unit-holders backed Balmain Trilogy who offered even lower fees. City Pacific posted a $139 million loss in 2008.
