Resources and mining companies dominating the headlines this past week include Newcrest Mining receiving conditional approval to list on the Toronto Stock Exchange, AGL commits to buying the Loy Yang power station, Rio Tinto’s investment in driverless trains, Macmahon Holdings forecasts a record full year result and Woodside Petroleum’s financial year net profit is weighed down by construction delays.
Newcrest gets go-ahead for TSX Listing, Lihir disruptionsNewcrest Mining Limited
(ASX:NCM) has received conditional approval to list on the Toronto Stock Exchange in Canada. The gold mining company now expects to start trading in early March, having earlier targeted the end of the first quarter. Chief executive Greg Robinson has previously said the listing will place Newcrest in the major gold market of North America directly against its competitors.
Newcrest also reports its Lihir operation is experiencing a production disruption expected to severely impact March’s quarterly output by 50,000 to 60,000 ounces. Newcrest says it believes the existing plant is suffering from a long term underinvestment in maintenance. The company has owned the plant for 18 months and has completed a detailed review of the maintenance plan.
AGL will buy Loy YangAGL Energy Limited
(ASX:AGK) will raise $1.5 billion to finance the 100 per cent purchase of the Loy Yang power station in Victoria and partially repay some bank loans. The funding is made up of $650 million of high equity credit hybrid notes and an $850 million renounceable rights entitlement offer. AGL today posted a half-year net profit of $117 million, a fall of more than 50 per cent. Underlying profit increased 3 per cent, with AGL managing director Michael Fraser saying he’s pleased with the interim result and it provides a solid base for a strong full year result. AGL says it’s on track to deliver full year results in line with previous guidance for underlying profit of between $470 million and $500 million. An interim dividend has been maintained at 29 cents per share, fully franked.
Rio invests in driverless trains, uncovers pink gemRio Tinto Limited
(ASX:RIO) has announced a $US 518 million investment in driverless trains for its Pilbara operations. The first driverless trains will be launched in 2014 and will support Rio’s expansion plans in Western Australia. The global miner has also unveiled Australia’s largest pink rough diamond, discovered at its Argyle mine in the Kimberley region. The 12.76 carat diamond is called the Argyle Pink Jubilee and will be auctioned later this year.
Macmahon forecasts record FY12Macmahon Holdings Limited
(ASX:MAH)has forecast a record full year result and reinstated dividends. The mining contractor and construction company expects to deliver a full year profit of up to $60 million in fiscal 2012, on the back of a 27 per cent improvement in its first half net profit.
Macmahon chief executive Nick Bowen said, “The company’s financial condition is close to the best it has been in its 49 year history.”
“With the strong order book and pipeline of opportunities Macmahon is on track to deliver not only a record profit for FY12, but further growth in FY12,” added Mr Bowen.
Macmahon has declared a fully franked interim dividend of 1.5 cents per share.
Woodside FY11 profit dips on Pluto delaysWoodside Petroleum Limited
(ASX:WPL) has reported a 4.3 per cent fall in its full 2011 financial year net profit, weighed down by construction delays at its $14 billion Pluto liquefied natural gas project off Western Australia’s coast. In 2011 oil production came in at 64.6 million barrels of oil equivalent and Woodside expects this to grow to up to 81 million barrels of oil equivalent this year, supported by a significant gas discovery made at the Pluto LNG project.
Resources NewsChina relaxes banking requirementsMining stocks were given a lift on news China had relaxed its banking requirements. Markets responded positively to the People’s Bank of China easing monetary conditions by lowering the bank reserve ratio, in order to boost liquidity and support lending in the world’s second largest nation.
Mining drives infrastructure constructionThe mining sector has again been credited with increasing Australia’s infrastructure construction. According to Westpac Banking Corporation
(ASX:WBC) the total value of infrastructure projects that started work in the September quarter 2011 rose to $36.5 billion. The rise was underpinned by $23.2 billion of projects starting in the mining sector, up from $9.4 billion the year before.
Melissa Beaumont Lee
