Ahead of the financial reporting season resource companies have began to post production results and release guidance. China’s GDP figures have come in better than expected, supporting CommSec Chief Economist, Craig James’ views that China will continue to support the mining sector this year.
WA again placed as strongest economy Resource rich Western Australia has again taken out the top spot in CommSec’s State of the States report. The report looks into each state's economic performance and found while Western Australia has held on to its position as the strongest state economy the Northern Territory has narrowed the gap. The ACT came in as the third-best performing economy, followed by Queensland, Victoria, New South Wales, South Australia and Tasmania.
Rinehart asks Rio Tinto to move headquarters to Perth West Australian mining magnate Gina Rinehart has asked Rio Tinto Limited’s (ASX:RIO, LON:RIO) new chief to move the company’s headquarters to Perth from London and reinvest more of the company’s profits into Australia. Rio Tinto has flagged $US14 billion of write downs and announced its iron ore chief Sam Walsh will replace outgoing CEO Tom Albanese. Ms Rinehart is the Chairman of Hancock Prospecting, a co-owner of the Hope Downs iron ore joint venture with Rio Tinto.
China’s GDP beats expectations The Chinese economy expanded above expectations at the end of 2012. China’s National Bureau of Statistics in China has reported the world’s second largest economy grew at an annual rate of 7.9 per cent in the fourth quarter of 2012 and grew at 7.8 per cent over the calendar year.
Commentary FNN spoke to Commonwealth Bank of Australia’s
(ASX:CBA) broking arm CommSec Chief Economist, Craig James about his outlook for the mining sector:
“Overall I think the global environment is going to be better, the miners are going to have a better control of costs and really got to remember in terms of China, we’ve only just started down the road of development; they’ve got 1.3 billion people demanding our resources. So I think we are going to see some good gains for miners for a long term rather than just this year.”
To watch more of the interview click
here.
Production results Mineral sands producer Iluka Resources Limited
(ASX:ILU) has posted a 30.5 per cent fall in annual production amid weaker consumer demand for its products.
Guidance Oil and gas producer Woodside Petroleum Limited
(ASX:WPL) has posted record total annual production and reiterated its production guidance of between 88 and 94 million barrels in 2013.
Oil producer Santos Limited
(ASX:STO) has reaffirmed its full year production guidance after posting increases in production and revenue in the 2012 calendar year.
