Latest news with #ironore
News.com.au
2 days ago
- Business
- News.com.au
BHP, CSL, CBA drive the ASX higher
Australia's sharemarket hit its third record high in five days on Friday, on the back of a jump in the major iron ore miners and healthcare stocks. The ASX 200 continued its record breaking run, jumping 118.20 points or 1.37 per cent to 8,757.20 with the index having its best day since April 10. The broader All Ordinaries surged 116 points or 1.30 points to 9,006.80. On an overall strong day for investors, all 11 sectors finished in the green. Healthcare shares led the way up 2.47 per cent while the materials sector gained 2.06 per cent and information technology closed the week 1.50 per cent higher. Healthcare darling CSL rallied 3.62 per cent to $257.38, Sigma Healthcare gained 1.08 per cent to $2.81 and Telix Pharmaceuticals jumped 2.77 per cent to $25.26. The major iron ore miners continued their run higher as the price of the commodity rose above $US100 a tonne for the first time in two months through the trading week, on the back of better than expected economic data out of China. BHP chief executive Mike Henry told the market the demand for iron ore remained resilient on the back of strong Chinese demand. 'That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector,' Mr Henry said. 'While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact.' BHP jumped on this news, 3.02 per cent to $40.29, Fortescue rose 0.53 per cent to $17 and Rio Tinto finished in the green up 1.81 per cent to $113.11. The big four banks also had a strong day with CBA adding 0.92 per cent to $182.46, NAB gained 1.27 per cent to $39.19. Westpac jumped 1.81 per cent to $34.31 and ANZ finished 1.22 per cent higher to $30.82. Despite the strong run up from the major Australian shares, Morningstar says the top end could be overvalued with an 'earnings recession' likely to continue for the third straight year. Morningstar market strategist Lochlan Halloway said while the other indexes continued to rise, Australia's largest businesses – from an earnings point of view – were actually falling. 'Eventually, something's got to give – either earnings catch up to lofty prices, or valuations rebase to reflect the reality of slower growth,' Mr Halloway said. 'This disconnect between prices and profits goes a long way to explaining why valuations look so stretched at the top end of the market. In company news, shares in Mesoblast soared 34.7 per cent to $2.41 after the biotech company informed the market it had $20m in sales of its flagship stem cell therapy which was launched in March.
Yahoo
2 days ago
- Business
- Yahoo
ASX has best week since May
Australia's sharemarket hit its third record high in five days on Friday, on the back of a jump in the major iron ore miners and healthcare stocks. The ASX 200 continued its record breaking run, jumping 118.20 points or 1.37 per cent to 8,757.20 with the index having its best day since April 10. The broader All Ordinaries surged 116 points or 1.30 points to 9,006.80. On an overall strong day for investors, all 11 sectors finished in the green. Healthcare shares led the way up 2.47 per cent while the materials sector gained 2.06 per cent and information technology closed the week 1.50 per cent higher. Healthcare darling CSL rallied 3.62 per cent to $257.38, Sigma Healthcare gained 1.08 per cent to $2.81 and Telix Pharmaceuticals jumped 2.77 per cent to $25.26. The major iron ore miners continued their run higher as the price of the commodity rose above $US100 a tonne for the first time in two months through the trading week, on the back of better than expected economic data out of China. BHP chief executive Mike Henry told the market the demand for iron ore remained resilient on the back of strong Chinese demand. 'That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector,' Mr Henry said. 'While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact.' BHP jumped on this news, 3.02 per cent to $40.29, Fortescue rose 0.53 per cent to $17 and Rio Tinto finished in the green up 1.81 per cent to $113.11. The big four banks also had a strong day with CBA adding 0.92 per cent to $182.46, NAB gained 1.27 per cent to $39.19. Westpac jumped 1.81 per cent to $34.31 and ANZ finished 1.22 per cent higher to $30.82. Despite the strong run up from the major Australian shares, Morningstar says the top end could be overvalued with an 'earnings recession' likely to continue for the third straight year. Morningstar market strategist Lochlan Halloway said while the other indexes continued to rise, Australia's largest businesses – from an earnings point of view – were actually falling. 'Eventually, something's got to give – either earnings catch up to lofty prices, or valuations rebase to reflect the reality of slower growth,' Mr Halloway said. 'This disconnect between prices and profits goes a long way to explaining why valuations look so stretched at the top end of the market. In company news, shares in Mesoblast soared 34.7 per cent to $2.41 after the biotech company informed the market it had $20m in sales of its flagship stem cell therapy which was launched in March. Virgin Australia gained 1.9 per cent to $3.27 after the recently relisted airline gained a buy rating from UBS citing clearer strategy and strong fundamentals for the business. Error in retrieving data Sign in to access your portfolio Error in retrieving data
News.com.au
2 days ago
- Business
- News.com.au
Monsters of Rock: BHP's big year and battery metals comeback
BHP sees "resilience" in commodity demand amid trade stoushes Big Australian posts copper and iron ore records Lithium and graphite stocks rise with higher prices and US tariffs respectively BHP (ASX:BHP) CEO Mike Henry has shrugged off concerns about global trade, calling commodity markets resilient despite a porous Chinese property market and the impact of Donald Trump's tariffs on the Middle Kingdom's exports. The Big Australian is strongly wedded to the Chinese economy, producing a record 290Mt of iron ore from its Pilbara operations in FY25 while it increased met coal sales by 5% after the sale of its Blackwater and Daunia mines to Whitehaven Coal (ASX:WHC) last year was taken into account. It also lifted copper output 8% to 2.017Mt, with its flagship Escondida mine in Chile lifting 16% to a 17-year high of 1.305Mt. Unit costs are expected to be on track, with Escondida and NSW energy coal divisions exceeding the top end of guidance, while the Spence, WA iron ore and BMA (Qld coal) ops were all in the upper half of the guidance range. "Commodity demand globally has remained resilient so far in 2025," Henry said. "That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA and its ability to deliver robust domestic demand despite the dislocation in the property sector. "Copper and steel demand have benefited from a sharp acceleration in renewable energy investment, electricity grid build out, strong machinery exports and EV sales. "While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact. "Going forward, China's 15th 5-year plan is likely to provide more visibility on policies to sustain longer term growth and development.' At 70Mt on an equity basis and 77.5Mt on a 100% basis, BHP's iron ore shipments rose 14% to a quarterly record in the three months to June 30. But prices were down 8% QoQ and 12% YoY to US$79.93/wmt FOB, with full year pricing 19% lower at US$82.13/t. It comes as traders get more bullish on China in the hopes capacity controls and potential stimulus could revive property demand, with iron ore up 1.6% in Singapore this morning to US$102.45/t. Jansen pottering But not all is well. A predictable update saw BHP lift cost estimates for its Jansen potash mine in Canada from US$5.7bn to US$7-7.4bn, with the company reverting the first stage of the development to its original completion timeline of mid-2027. Guidance is a little hum-drum for next year as well. Copper production for FY26 is guided at 1.8-2Mt, with Escondida's output forecast to fall, iron ore 284-296Mt, the Samarco JV with Vale in Brazil is forecast to lift from 6.4Mt in FY25 to 7-7.5Mt in FY26, while steelmaking coal will come in at 36-40Mt on a 100% basis and the Mt Arthur thermal coal mine will deliver 14-16Mt, around the same as its 15Mt output in the past year. RBC's Kaan Peker said the guidance was in line with consensus, saying strong operating and cashflow performance in Q4 would lead the stock to trade well today, offset by the Jansen news. Net debt of US$13bn was below RBC's and consensus estimates of US$13.9bn and US$14.2bn. BHP's Nickel West business will also report US$250-300m of negative EBITDA for the second half of FY25, after shutting down progressively over the course of the year in response to high costs and weak nickel prices caused by oversupply out of major producer Indonesia. Battery metals not booming, but maybe blooming A little bit of positivity creeping in for battery metals producers, with China starting to crack down on "illegal" mining activities at loss-making operations. In a situation that largely benefits battery maker CATL and EV giant BYD, a radical ramp up in production by Chinese producers, along with supply rushes a couple years back out of Africa, WA and South America, has sent lithium into a deep oversupply situation. That's left the industry in the Middle Kingdom effectively eating itself at the expense of BYD and CATL's bottom lines as they try to get battery costs down for electric vehicle buyers. But China's Zangge Mining – a subsidiary of Zijin – said local officials in Qinghai had told it to halt mining, according to a notice on the Shenzhen Exchange, Reuters said. The response has been swift. According to Fastmarkets, lithium carbonate prices were up US$200 to US$8500/t yesterday, with spodumene rallying to US$722.50/t from US$700/t thanks to a rise in futures prices. However, S&P Global reported that a slow down in US demand was hurting the lithium market, with power battery sales in China also growing at just 1% in May compared to 30.7% in March and 6.4% in China. Further data from the China Automotive Power Battery Industry Innovation Alliance shows installations in June lifted 1.9% MoM, but 35.9% YoY, with CATL and BYD accounting for 65% of the market between them. For the whole first half installed capacity rose 47.3% in China to 299.6GWh. S&P says low cost brine producers are also hampering the supply-demand balance by ramping up output in a bid to dilute fixed costs. With lithium prices running higher and the Zangge news, Pilbara Minerals (ASX:PLS) shares lifted 6.35%, Mineral Resources (ASX:MIN) rolled 5% higher, IGO (ASX:IGO) ran 2% and Liontown Resources (ASX:LTR) was up 6.5%. Graphite run Not to be outdone, it's been a good morning for graphite bulls, thanks to the announcement of a 93.5% anti-dumping duty on Chinese natural and synthetic graphite producers in the US. The measure was lobbied for by a consortium of American graphite hopefuls, including Novonix (ASX:NVX) and Syrah Resources (ASX:SYR), which are attempting to establish, respectively, synthetic and natural graphite based battery anode material factories in the US. NVX shares charged 18% after the preliminary determination by the US Department of Commerce, which would make the effective tariff rate on Chinese graphite some 160%. Final determinations on the DoC investigations are due on December 5. Novonix CEO Michael O'Kronley said the decision underscored the 'strategic importance' of building a North American graphite supply chain. It owns one operating plant in Chattanooga, with Riverside, while a second known as Enterprise South is also being planned for an eventual total production rate of 50,000tpa. "It affirms our business strategy as well as the diversification strategy of our customers to source critical battery materials and components locally," O'Kronley said. "Novonix, with the most advanced synthetic graphite production facility in North America, will be increasing significantly the United States production of an essential strategic mineral while strengthening American manufacturing, and creating high-quality jobs locally.' The ASX 300 Metals and Mining index rose 3.63% over the past week. Which ASX 300 Resources stocks have impressed and depressed? Making gains Iluka Resources (ASX:ILU) (mineral sands/rare earths) +33.8% ioneer (ASX:INR) (lithium) +25% IperionX (ASX:IPX) (titanium) +23.8% Lynas (ASX:LYC) (rare earths) +21.9% Eating losses Ora Banda (ASX:OBM) (gold) -10% Vulcan Energy Resources (ASX:VUL) (lithium) -8.9% Catalyst Metals (ASX:CYL) (gold) -6.8% South32 (ASX:S32) (diversified) -5.8% After the news of the DoD and Apple's big investments in US rare earths producer MP Materials, investors are lining up in both rare earths and US critical minerals, powering the outsized gains for Iluka, Ioneer, IperionX and Lynas. South32 was a notable loser given its $13bn heft, flagging issues around electricity supply at its Mozal aluminium smelter in Mozambique.
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
BHP Lifts Annual Iron Ore, Copper Output; Flags Higher Costs, Delays on Potash Project
Mining giant BHP BHP 0.00%increase; green up pointing triangle Group said it produced more iron ore and copper over the past year, but flagged possible delays and cost increases at the giant potash project it is building in Canada's Saskatchewan province. The world's No. 1 miner by market value on Friday reported iron-ore production of 263.0 million metric tons for the 12 months through June, up 1% on the year earlier. Iron ore, used to make steel, accounts for more than half of BHP's earnings.
Reuters
2 days ago
- Business
- Reuters
BHP logs record copper output but flags Jansen delay and cost blowout
July 18 (Reuters) - BHP ( opens new tab reported on Friday annual copper production above 2 million metric tonnes for the first time but warned of lower output next year while separately flagging delays and cost blowouts of up to 29% for its key Jansen Stage 1 potash project. The world's largest listed miner achieved copper production of 2.02 Mt in fiscal 2025, at the upper end of its forecast range. However, it expects output to drop to between 1.8 Mt and 2.0 Mt in fiscal 2026, reflecting planned lower grades at its flagship Escondida mine in Chile. BHP also reported record annual iron ore production of 290 Mt, at the upper end of its guidance, while its fourth-quarter output of 77.5 Mt beat a Visible Alpha consensus estimate of 75.90 Mt. The miner said first production from its Jansen Stage 1 potash project in Canada has been pushed back to mid-2027 from the previously targeted end-2026, while capital expenditure estimates have surged to $7.0 billion-$7.4 billion from $5.7 billion - a cost increase of up to 29%. "The estimated cost increase is driven by inflationary and real cost escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period," BHP said in a statement. Strong iron ore production in the June quarter helped offset a weak March quarter that was impacted by two tropical cyclones. BHP had undergone a debottlenecking exercise at its Pilbara operations after ramping up the South Flank mine last year. For fiscal 2026, BHP expects iron ore production between 284 Mt and 296 Mt. The company is also assessing a potential divestment of its Western Australia Nickel assets as part of an ongoing review, citing balance sheet impacts from the nickel business. "Any decision to divest will be subject to an assessment against other options, including continuing temporary suspension, restart or closure," it said.
