Energy Resources of Australia (ASX:ERA) is a uranium company which mines, processes and sells uranium oxide from the Ranger mine in the Northern Territory and uranium concentrates sourced outside Australia to nuclear electric utilities in Japan, South Korea, Europe and North America. ERA also provides environmental consulting services.

Australian shares, Energy Resources today announced that it will book a loss of $153.6 million for the CY11, compared to a profit of $47 million in CY10.

The company cited that production at its flagship mines was suspended for five months due to heavy rains.

Energy Resources is forecasting a uranium oxide output of between 3000 and 3700 metric tons for 2012, compared to 2641 last calendar year.

For FREE Daily Trading Recommendations, Click Here!

   Written by: admin   Other posts from: admin

Rio Tinto (ASX:RIO) is one of the world’s largest miners, mining and processing a wide range of metals and minerals including all the key base metals, precious metals, diamonds, iron ore and energy products.

The miner is widely considered among the blue chip stocks, and it is also among the biggest companies in the Australian share market.

Today, RIO announced the sale of up to 13 assets as it looks to restructure its aluminium division.

The sale would include Australian and European based refineries and smelters, with the sale likely to happen when the economic picture improves.

The sale would also allow RIO to focus on its tier one assets in an effort to drive improvements at the aluminium division.

RIO’s interest in six of the assets would be transferred to a new business, called Pacific Aluminium.

The other seven assets will continue to be managed by Rio Tinto Alcan until they are sold.

Receive FREE Trading Recommendations for the next 7 Days, Click Here!

   Written by: admin   Other posts from: admin

Rio Tinto (ASX:RIO) is one of the world’s largest miners, mining and processing a wide range of metals and minerals including all the key base metals, precious metals, diamonds, iron ore and energy products.

The miner is widely considered among the blue chip stocks, and it is also among the biggest companies in the Australian share market.

Today, media reports have suggested that RIO is considering spinning off its aluminium assets in Australia.

RIO said last week it was planning asset sales in the aim of achieving a 40% EBITDA margin from its aluminium division by 2014.

The reports said RIO would hold its two bauxite mines as these offered the highest margins due to a supply shortage in China.  Bauxite is a key source of aluminium.

Instead the asset sale would comprise three refineries and three smelters, according to the reports.

Receive FREE Trading Recommendations for the next 7 Days, Click Here!

   Written by: admin   Other posts from: admin

Paladin Energy (ASX:PDN) is a uranium miner, with projects located in Africa and Australia.

PDN’s long-term goal is to establish itself as a uranium producer through identifying, acquiring and evaluating advanced uranium projects.

The group’s current focus is on its African projects: Langer Heinrich (Namibia) and Kayelekera (Malawi).

PDN has been one of the shares to sell this year after facing a number of challenges including a nuclear crisis in Japan.

The future was looking bright for uranium companies like PDN as world energy needs surged on the back of expansion and industrialisation in China and India.

Nuclear energy seemed the next biggest thing until disaster struck this year following the earthquake and tsunami in Japan.

As Japan’s nuclear crisis deepened, the less attractive uranium looked as an energy source for the future.

Germany’s plans to move away from uranium entirely by 2022 have hurt uranium companies further.

In addition, a looming global economic crisis is threatening to slow energy demand worlwide.

Production lacks energy

PDN had a bad start to the year after downgrading its FY11 uranium production guidance to between 6.0 million – 6.3 million pounds (Mlb), from the previous 7 million pounds.

PDN said that second quarter production rose 7.6%, however full year output was going to be affected by power and maintenance disruptions at its Malawi-based Kayelekera mine.

Paladin Energy shares slid 7.7% following the update. To make matters worse, PDN’s final FY11 production came in at 5.7Mlb, completely missing the mark.

Following Japan’s nuclear crisis, PDN announced that it does not have any commercial relationship with Japanese utilities.

It further said that it had a strong balance sheet and is in a good position to meet global uranium demand given the expected supply disruptions.

FY results

Last month, PDN reported an FY11 net loss of US$82.3 million after costs related to acquisitions and mine expansions more than offset higher revenue from increased production.

This was wider than the US$52.9 million net loss reported in the previous year and was also larger than the average US$44 million net loss analysts had expected.

PDN said its costs rose due in part to lower uranium prices in the wake of Japan’s nuclear crisis.

Looking ahead

PDN and its uranium sector peers have been under pressure after a catastrophic earthquake and a tsunami crippled reactors at the Fukushima Dai-Ichi reactor in Japan.

The event has raised fears regarding uranium as an energy choice. Whilst uranium is one of the greenest forms of energy when contained, disasters such as Chernobyl have led to long-standing controversy regarding nuclear power.

With Germany looking to move away from uranium entirely by 2022, there are wide fears that other developed nations will also reconsider their stance on uranium.

This uncertainty is likely to see uranium miners under pressure in the medium to long term with potentially devastating long term effects.

PDN’s price action has suffered, reflecting the underlying issues the company has been facing.

We feel PDN will continue to struggle on a combination of high debt levels, a tough economic outlook and a weak uranium market.

Receive FREE Trading Recommendations for the next 7 Days, Click Here!

   Written by: admin   Other posts from: admin

Macarthur Coal (ASX:MCC) is a coal miner, supplying low volatile pulverized coal injection coal (PCI coal) to the steel mills of Asia, Europe and Brazil as well as some thermal and coking coal.

Its primary focus is production at the Coppabella and Moorvale coal mines located near Moranbah in Queensland’s Bowen Basin, which together provide approximately 47% of the PCI coal exported from Australia.

Today, MCC rejected a revised $16.00 a share offer from Peabody Energy and Arcelor Mittal.

The new bid, which values MCC at $4.84 billion, trumps the previous offer of $4.73 billion.

However, MCC knocked back the bid, saying instead it was prepared to accept an offer of $5.68 billion ($18 a share) once the two suitors acquired over 90% of the company.

MCC was one of the hot stocks when news of the initial takeover broke on 11 July.  Its shares surged 37% the next day, making it one of the best performers in the stock market.

Click for FREE Daily Mining Share Tips

   Written by: admin   Other posts from: admin

Integra (ASX:IGR) is an Australian gold explorer looking at becoming a significant new mid-tier Australian gold production house.

IGR has built up its portfolio through a series of acquisitions, joint ventures and strategic alliances – predominantly in the Eastern Goldfields region of Western Australia.

It is looking to commission its flagship, the Randalls Gold Project. In January, IGR announced a 40% increase in resources.

The miner has an attractive asset portfolio with low cost gold production, approximately $500 per ounce cash cost.

It has enjoyed a successful transition to a gold producer aiming to produce 140,000 ounces (oz).

IGR has a good track record of discovery and development with significant exploration potential.

The miner recently reported shallow high grade gold results at the Lucky Bay prospect.

Business investment

Integra is looking to spend $12 million upgrading its processing facility. It will also be looking to repay $20 million worth of debt.

By the end of FY12, the company will be nearly debt free.

The Randalls Gold project will be producing 90,000oz per year at $500 per ounce.

The process plant expansion is expected to be completed by August. The target production is 100,000oz per annum.

There are also plans to increase production to 120,000-140,000oz per year underpinned by underground production potential.

Looking ahead

IGR has a very strong business primed for long term growth. The recent positive results at Lucky Bay are testament to IGR’s strength and potential.

Gold has gained significantly this year, reaching fresh record highs as global economic uncertainty, natural disasters and tension in North Africa and the Middle East pushes investors towards the safety of the shiny metal.

The metal tacked on 4% last week and continues to hold its ground well above US$1500.

With plenty in the reserve growth pipeline and rising gold prices, we feel IGR will be one of the stocks to watch in coming months.

Click here for FREE Daily Trading Picks.

   Written by: admin   Other posts from: admin

Murchison Metals (ASX:MMX) is an emerging iron ore and infrastructure group focused on Western Australia.

The group boasts a strategic alliance with Mitsubishi Development, which aids MMX’s balance sheet by making substantial equity payments plus debt support.

MMX’s boasts world class businesses, including a 50% shareholding in Crosslands Resources, a 50% stake in Oakajee Port & Rail, and 100% ownership of the Rocklea Iron Ore Project.

The group’s three major projects – all located in Western Australia – are the Rocklea, Jack Hills and Oakajee prospects.

In addition to these investments, MMX is actively exploring growth opportunities in iron ore, coal and manganese.

Cost blowout and delay

MMX yesterday announced that costs at its Oakajee iron ore export project have increased by more than a third to $5.94 billion.

Murchison Metals jointly manages the project with Japan’s Mitsubishi Corp. First ore from the project won’t be delivered until 2015.

The company’s shares finished the day down 2%. Following broker downgrades, MMX extended these losses today finishing the day down 23%.

Get daily Mining Shares Advice

   Written by: admin   Other posts from: admin

Rio Tinto (ASX:RIO) is one of the world’s largest miners, mining and processing a wide range of metals and minerals including all the key base metals, precious metals, diamonds, iron ore and energy products.

The miner is also widely considered among the market’s blue chip stocks.

On 13 April RIO reported its first quarter production numbers.

RIO said wet weather conditions impacted iron ore output, which fell 3% on-year during the quarter.

Coal production was also affected by the flooding and cyclones.  Hard coking coal output declined 12% from the 1Q10.

Mined copper was 14% lower than the prior corresponding period, due primarily to lower grades at Escondida and Grasberg.

For FREE Daily Mining Shares News and RIO Shares Advice, click here.

   Written by: admin   Other posts from: admin

Equinox Minerals (EQN) is an international mining company that is dual listed in Canada and Australia, focused primarily on copper but with some small exposure to other resources (such as uranium and gold).

EQN boasts operations in Western Australia and Peru but the company’s main project is the development of its 100%-owned Lumwana Project (Zambia), one of the largest new copper mines to be developed globally over the last decade.

EQN was hit hard yesterday after it made a takeover offer for Canadian-based Lundin Mining the previous night.

The C$4.8 billion offer is an attempt by EQN to derail a planned friendly merger between Lundin and fellow Canadian miner Inmet.

EQN said its bid would make it one of the top 10 copper producers in the world by 2016.  EQN would return to a net cash position in four years, with the deal expected to generate bumper cash flows.

EQN’s part cash/part scrip offer represents a 26% premium to Lundin and Inmet’s share exchange offer, which has no premium.

EQN slumped 6.1% on the day, making it one of the worst performers in the Australian share market.

Receive dialy Mining Shares News and Equinox Minerals updates with your free trial.

   Written by: admin   Other posts from: admin

PanAust (PNA)  is junior miner that holds mineral assets in the Laos and Thailand.

In Laos, PNA operates the large Phu Kham copper-gold operation, which commenced production of copper-gold concentrate in April 2008.

ON 14 December, PNA increased its 2010 production guidance to 67,000 tonnes of copper, from the previous 65,000 tonnes.

Cash costs are also expected to decline to US$0.90/lb from the previous range of US$0.95/lb – US$1.05/lb.

PNA based the upgrade on strong quarter to date production at its flagship Phu Kham Copper-Gold Operation in Laos.

PanAust also forecast EBITDA of US$260 million on the assumption that production will exceed sales in the final quarter of the year.

PNA flew 10.7% on the day of its guidance, making it one of the best performers in the stock market.

Receive up to date news and advice on PNA, mining stocks and more with a free trial report.

   Written by: admin   Other posts from: admin