As the earnings season kicks off the mining sector is delivering some notable losses with profits hit by erratic commodity prices and currency fluctuations over the 2012 reporting period. Several major miners and lesser lights have posted steep profit falls, while the government’s mining tax has collected a little more than one tenth of its full year target.
Mining tax falling short of forecasts
The controversial Minerals Resource Rent Tax (MRRT) looks unlikely to reap the $2 billion it was recently forecast to make in the current financial year after collecting just $126 million in its first six months. According to Federal Treasurer Wayne Swan, the tax has been hit by volatile commodity prices, a high currency and global uncertainty.
Oil and gas workers earning a mint
A survey conducted by recruitment firm Hays has revealed Australia’s oil and gas sector employees to be the highest paid in the world with average annual earnings of around $160,000, a staggering 25 per cent above their US counterparts.
Commentary
FNN spoke to John Trudgian, a partner at Williams Inference, who cast some doubt over the recent spike in iron ore prices:
“I’m not convinced about the sustainability of these higher iron ore prices, but the Chinese do have a lot of infrastructure to build over the next twenty years, and there will be strong demand for resources continuing.”
To watch more of the interview click
here.
Volatility hits earnings
Rio Tinto Limited
(ASX:RIO) has booked a net loss of $US2.9 billion for the 2012 financial year, weighed down by $US14 billion in write downs on its aluminium and coal businesses.
BHP Billiton Limited
(ASX:BHP) has posted a 58 per cent fall in its first half net profit and announced the resignation of its CEO Marius Kloppers.
Uranium producer Paladin Energy Limited (ASX:PDN, TSE:PDN) has extended its first half loss by 61 per cent to $US193.5 million due to uranium price weakness and an million impairment expense at its Kayelekera mine in Malawi.
Steelmaker Arrium Limited
(ASX:ARI) has plunged to a first half net loss of $447.2 million, weighed down by a $474 million write down on the value of its assets.
Executive appointments
Mining and materials company Arrium Limited
(ASX:ARI) has appointed the head of its mining consumables business, Andrew Roberts, to replace Geoff Plummer as its new CEO.
Mining services company Boart Longyear Limted
(ASX:BLY) has appointed Richard O’Brien to replace Craig Kipp as CEO, effective from April this year.
Asset and stake sales
Macmahon Holdings Limited
(ASX:MAH) says it will consider the latest offer for its construction business from Indian-backed suitor Sembawang.
Aluminium refiner Alumina Limited
(ASX:AWC) has a new significant shareholder after Chinese state owned Citic resources purchased a 13 per cent stake for $452 million.
Earnings reports
Steel maker BlueScope Steel Limited
(ASX:BSL) expects to return to profit in the second half of the current financial year after significantly narrowing its loss to $12 million in the first half.
Despite a record first half result Boart Longyear Limted’s
(ASX:BLY) full year net profit has slumped 57.4 per cent to $US68.2 million.
Construction and engineering services company Clough Limited (ASX:CLO) has lifted its first half net profit to $43.2 million, and believes it is well positioned to pursue growth options.
