Tag Archives: Aluminum

Australian stocks extended gains as commodity-exposed companies shone | Instant News


April 7 (Reuters) – Australian stocks on Wednesday extended gains for a fourth session, driven by commodity-exposed stocks to strong crude oil and metals prices and as investors bet on improving prospects for a global economic recovery.

The S & P / ASX 200 index rose 0.5% to 6,920.2 points in early trading, hitting a new high since mid-February. Elsewhere in Asia, Nikkei futures were up 0.4%.

On Tuesday, the International Monetary Fund raised its forecast for global economic growth to 6% this year, a level not seen since the 1970s.

Strong economic data from China and the United States lifted oil prices by 1%, while a weaker dollar and lower US Treasury yields boosted bullion.

Meanwhile copper prices rose on supply concerns after a major Chilean producer closed its borders following a spike in coronavirus infections.

Strong commodities lifted sentiment despite the pullback on Wall Street overnight. All three major US stock indexes closed in the red, retreating from previous session record highs, while Treasury yields edged down.

The ASX 300 metals and mining index was up 0.67%, while the gold sub-index was up 1%, led by Resolute Mining Ltd. which was up 4.4%.

Tech shares rose 1.8%, led by EML Payments Ltd, up 10.7%, followed by NEXTDC Ltd which rose 3.6%.

In New Zealand, the benchmark S & P / NZX 50 index was up 0.68% to 12,484.3.

The highest percentage gainer in the benchmark index was Contact Energy Ltd, up 2.8%, followed by Pushpay Holdings Ltd and Air New Zealand Ltd which rose 2.5% and 1.9%, respectively.

Reporting by Shruti Sonal in Bengaluru, Editing by Sherry Jacob-Phillips

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Column: Resource-rich Australia shows the strangeness of any super commodity cycle | Instant News


LAUNCESTON, Australia (Reuters) – For those looking for evidence of a new commodity supercycle, and for those skeptical of a sustainable resource boom, Australian government forecasters have covered it.

An autonomous truck prepares to load iron ore at Fortescue Metals Group (FMG) Chichester Hub Australia, which includes the Christmas Creek iron ore mine, in the Pilbara region, southeast of the coastal city of Port Hedland in Western Australia, 29 November 2018. REUTERS / Melanie Burton

The government’s latest Quarterly Resources and Energy Report, released on Monday, describes how some commodities surged during last year’s coronavirus pandemic, as well as how the gains were not comprehensive and may not be easily sustained.

The headline that caught the media’s attention was that the country’s resource and energy exports would hit a record A $ 296 billion ($ 226 billion) in the fiscal year to June 30, 2021.

Australia is the world’s largest exporter of iron ore, liquefied natural gas (LNG) and coking coal, which is used to make steel.

Indonesia ranks second behind Indonesia for thermal coal and third in copper ore shipments, and is a major producer of aluminum and alumina, the raw materials used to make refined metals.

Australia is also the third largest gold producer in the world and the largest net exporter of precious metals, and is a major supplier of battery metals such as nickel and lithium.

The outstanding performance for the country’s resource sector this fiscal year was driven largely by the top iron ore exports, which were estimated at A $ 136 billion, or just under half, of the total export value, according to a report compiled by the Office. Chief Economist of the Ministry of Industry, Science, Energy and Resources.

This is up from the A $ 104 billion iron ore exports in fiscal 2019/20, which was achieved at higher volumes (up 4%) and prices (up 41%).

The massive boom in iron ore revenue is largely a story fabricated in China, the world’s largest importer of steel spent on boosting its economy after being hit by the lockdown imposed to stop the spread of COVID-19.

The Chinese impact can be seen in several other Australian commodities, with copper export revenues up 20% to A $ 12 billion despite volumes shipped slightly lower.

However, it should be noted that apart from iron ore and copper, only the export value of gold increased in 2020/21, to A $ 29 billion from A $ 25 billion.

Australia’s other major resource and energy exports have declined, including LNG, crude oil, alumina, aluminum, zinc, lithium and both types of coal.

Lower prices for most of the fiscal year were largely to blame, although these have started to recover over the past few months.

SUPERCYCLE, WHAT SUPERCYCLE?

Much of the commodity super cycle story is built around high demand for resources from China, coupled with a synchronous boost from many other parts of the world as countries act to increase growth through infrastructure spending.

There are also expectations that supply for key commodities will struggle to keep pace, given weak investment spending by producers in response to sharp falls in prices in the early stages of the pandemic.

The Australian government report lends credibility to the demand side of the supercycle vision, but only for the commodities most exposed to China’s industrial strengths, namely iron ore and copper.

While others, including battery metals, are also showing signs of recovery, energy products have been underpinned by temporary factors, such as a reduction in producer production in the case of crude oil and a cold northern winter for LNG.

Where the report becomes more interesting is in its long-term view, which doesn’t see much of a demand-driven super cycle, with Australian energy resources and exports expected to rise to A $ 321.1 billion by 2025/26, a growth rate. a combined annual rate of only 1.7%.

It’s going to be a solid, unspectacular result, albeit far from being a supercycle story.

Digging into the breakdown shows that the commodity reports are expected to be most correlated with the energy transition, with export revenues from lithium expected to surge by about 440% from the current fiscal year to A $ 5.4 billion in 2025/26, while nickel will nearly double fold. to A $ 6.5 billion, and copper up 33% to A $ 16 billion.

In contrast, iron ore, this year’s star to the end of June, is expected to fade by then to A $ 104 billion – the same level as in 2019/20 – while LNG will remain relatively stable and both coal values ​​will decline. .

Overall, the report points out two things, first that the evidence for the emerging commodity supercycle is somewhat mixed, and second that while some commodities are likely to perform well in the coming years, profits will not extend to all.

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Robust, impact-resistant Apple Watch Sport is under development | Instant News


when. . .when Original Apple Watch After its launch, Apple sold a special Sport version of the device, which is the same as the standard aluminum model but with a sports strap.Then evolved into Nike version It has now been sold-but now Bloomberg writes that Apple is considering reviving the sports brand to make a more complete redesign of its smartwatch.

according to Mark Gullman, Apple is considering the possibility of releasing the Apple Watch, which can handle significantly more demanding use cases than today’s models.It will be covered with a rubber-like material, a bit reminiscent of Casio’s G-Shock watch.

The simple idea is to make the watch a good choice for sports. Today’s Apple Watch works well for people who run, ride bicycles, and swim, but it does not work well for sports with a higher risk of bumping and knocking: contact and combat sports, rock climbing, horseback riding, etc.

We still have a long way to go before the release, and it is still uncertain whether the reborn Apple Watch Sports mode will be released. But Gurman insists that it is in active (if early) development and has been nicknamed the Explorer Edition internally.

If you want to read the latest rumors about this year’s update, please visit our regular updates Apple Watch Series 7 News Center.If you can’t wait that long, please check our Best prices for Apple Watch Bargaining on the current model.

This article originally appeared on Macworld, Sweden. Translated by David Price.

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Fortescue declared a bumper dividend, but faced setbacks in a green push | Instant News


MELBOURNE (Reuters) – Fortescue Metals Group increased its dividend payout Thursday, but the boom in costs at a major development project in Western Australia is tarnishing its ambition to become a green energy powerhouse.

FILE PHOTO: The Australian Fortescue Metals Group (FMG) logo can be seen on bulk carriers loading iron ore in the coastal city of Port Hedland in Western Australia, 29 November 2018. Image taken 29 November 2018. REUTERS / Melanie Burton

The world’s fourth-largest iron ore miner now estimates the cost of its Iron Bridge magnetite project to be $ 3 billion, $ 400 million more than previously estimated as it delays first production to the second half of 2022 from the first half.

Earlier this week, Fortescue announced the resignation of its chief operating officer and two iron ore executives as part of a 12-week review of the high-grade ore project – a major part of the miner’s strategy to upgrade its product to win market share. and meet China’s preference for high quality ore.

“With (the review) underway, we have limited confidence in the new guidance,” RBC said in a report, while Moody’s called the swelling, caused by increased labor and logistics costs, “credit negative.”

The project is expected to produce 22 million tonnes when fully upgraded.

An update to the project was made with the miner’s first-half earnings report on Thursday which posted a 66% jump in profit, a record dividend and boosted its annual delivery forecast.

“I think what has happened in the last 24-48 hours has indeed given the market pause on its plans to deliver new projects, new technology overseas,” said UBS analyst Glyn Lawcock.

“(But) the market is very surprised by the fact that they are getting good payouts. I think the market is concerned about the jump in capital spending on Iron Bridge, commitments to spend more on renewable energy, and to reduce dividends. “

Joining BHP Group and Rio Tinto counterparts in giving investors the benefit of strong iron ore prices back, Fortescue announced a higher-than-expected interim dividend of A $ 1.47 per share, up from A $ 0.76 last year. .

China’s focus on infrastructure last year pushed up iron ore prices by more than 50%.

GREEN AMBITION

Fortescue last year embarked on an aggressive plan to develop a worldwide renewable energy project, called Fortescue Future Industries, and led by billionaire founder and largest shareholder Andrew Forrest, known as “Twiggy”.

Forrest, Australia’s second richest person, saw his personal fortune grow by A $ 1.65 billion ($ 1.28 billion) on Thursday thanks to his 36.3% stake in the company.

Among the projects are ammonia and hydrogen, and technology to use hydrogen produced from renewable energy to make steel, which is now one of the most polluting industries in the world.

Fortescue disclosed details of funding for FFI, with an allocation of 10% of net profit after tax, or approximately $ 400 million, to fund renewable energy growth, and another 10% to fund other resource growth options.

Despite the green push, Fortescue has refused to follow its counterparts Rio Tinto and Glencore who this week said they would set a coverage target of 3 to reduce customer emissions. Gaines said Fortescue was focused on reducing emissions on a “global scale”.

Fortescue’s first-half profit after tax was $ 4.08 billion, up from $ 2.45 billion a year earlier. This is in line with a $ 4.09 billion consensus of 10 analysts put together by research firm Vuma Financial.

Iron ore shipments are estimated to be in the range of 178-182 million tonnes for the financial year, up from the previous range of 175-180 million tonnes. Its stake was up 1.9% to A $ 24.88.

($ 1 = 1.2897 Australian dollars)

Reporting by Sameer Manekar and Rushil Dutta in Bengaluru; Edited by Arun Koyyur and Jacqueline Wong

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Fortescue Australia increases the cost estimates for the main project, declaring big dividends | Instant News


MELBOURNE (Reuters) – Fortescue Metals Group on Thursday raised its cost estimates and postponed the timeframe for its main Iron Bridge Magnetite project in Western Australia, while announcing higher returns and big dividends.

FILE PHOTO: The Australian Fortescue Metals Group (FMG) logo can be seen on bulk carriers loading iron ore in the coastal city of Port Hedland in Western Australia, 29 November 2018. Image taken 29 November 2018. REUTERS / Melanie Burton

The world’s fourth-largest iron ore miner now expects the total project cost to be $ 3 billion, $ 400 million more than previously estimated, and is delaying first production to the second half of 2022 from the first half.

The project is expected to produce 22 million tonnes when fully upgraded.

As part of a review of the high-grade ore project, a key part of Fortescue’s strategy to improve its products and win market share, the company earlier this week announced the resignation of its chief operating officer and two other executives in its iron ore division. .

An update was made in the miner’s first-half earnings report on Thursday in which it boosted its annual delivery forecast and reported a 66% jump in profit.

“I think what has happened in the last 24-48 hours has indeed given the market pause on its plans to deliver new projects, new technology overseas,” said UBS analyst Glyn Lawcock.

“(But) the market is very surprised by the fact that they are getting good payouts. I think the market is worried about a surge in capital spending for Iron Bridge, a commitment to spend more on renewable energy and so that dividends can be reduced, “he added.

Fortescue also announced a higher-than-expected interim dividend of A $ 1.47 per share, up from A $ 0.76 last year, joining BHP Group and Rio Tinto counterparts in benefiting investors from rising iron ore prices.

China’s focus on infrastructure last year prompted a more than 50% rise in iron ore prices, which hit a record in December on the China’s Dalian Commodities Exchange.

The payment sent a windfall of A $ 1.65 billion to the company’s largest shareholder, Andrew Forrest who is Australia’s second richest person with a net worth of A $ 23 billion, according to Forbes.

The stock was up 2.6% to A $ 25.04.

Fortescue estimates iron ore shipments will be in the range of 178-182 million tonnes for the financial year, up from the previous range of 175-180 million tonnes.

Net profit after tax for the first half was $ 4.08 billion, up from $ 2.45 billion a year earlier. This is in line with a $ 4.09 billion consensus of 10 analysts put together by research firm Vuma Financial.

Fortescue said it would allocate 10% of its net after-tax profit to fund renewable energy growth through its new unit, Fortescue Future Industries (FFI) and 10% to fund other resource growth opportunities.

Reporting by Sameer Manekar and Rushil Dutta in Bengaluru; Edited by Arun Koyyur and Jacqueline Wong

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