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.

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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.

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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 company is one of the biggest on the Australian share market and is widely considered among the blue chip stocks.

Today RIO said it will invest US$833 million to upgrade its integrated power and gas network, and develop fuel supply projects, in the Pilbara region.

The projects will be required to support RIO’s targeted annual production capacity of 283 million tonnes by 2013.

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Troy Resources NL (ASX:TRY) is a junior gold producer with operations at Sandstone in Western Australia and the Andorinhas Gold mine in Para State, Brazil.

The company, which is dual-listed on the Australian and Toronto Stock Exchanges, also boasts the Casposo gold-silver project being developed in Argentina.

TRY has forged a proven record of fast-track mine development., low cost operations, strategic acquisitions and exploration discoveries.

The Casposo mine and processing plant development recently recorded its first gold pour.

TRY has stepped into gold production at the right time, with gold prices repeatedly hitting record highs and driving up prospective gold miners such as TRY.

Operations booming

TRY is involved in gold production through its operations at Sandstone and Andorinhas, with the latter a focus of TRY’s attention over the last year.

Last year TRY acquired the Casposo gold/silver deposit in Argentina, and on 29 September confirmed the commencement of ore processing at the project.

The project has already poured its first gold.

Casposo will support the doubling of TRY’s production and rejoining the plus 100,000oz per annum producer club.

Troy Resources has an aggressive exploration program aimed at increasing Reserves and Resources and nearly all of this exploration expenditure is expensed.

The miner recently announced a high grade drill intercept outside the current Reserves and Resources in the Kamila South East Extension.

TRY is confident it will add to the existing Reserves and extend the mine life past the current planned 6 years.

Quarterly update

For the June quarter, TRY saw a 68% increase in group gold production to 26,382oz at a cash cost of US$496/oz.

For the year, gold production was up 17% to 71,614oz at a cash cost of US$554/oz.

The miner enjoyed record quarterly and annual production at Andorinhas. TRY has its exploration budget at Caposo to $15 million.

Strong cashflow generation saw net debt decrease to just $5.5 million at the end of the quarter.

Looking ahead

With inflation concerns and a weaker US dollar continuing to propel gold prices higher, we feel TRY has plenty of upside potential.

Bullion prices have rocketed this year, and the domestic gold miners have been some of the hot stocks in recent months.

Gold price has repeatedly hit record highs of US$1815.5 per oz last week with forecasts it will keep rising.

Fears over rising debt levels across the US and Europe provide strong support for gold prices.

TRY is committed to pursuing growth through exploration, acquisition of new projects and/or corporate merger activity.

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Newcrest Mining (ASX:NCM) is the biggest Australian gold producer on the share market, with mining and exploration projects in Australia, Papua New Guinea (PNG), Indonesia and the US.

Gold remains in high demand due to a volatile US dollar and economic uncertainty, and as a result NCM has been one of the best stocks in the past few months.

Today, NCM reported a 63% surge in FY11 net profit to $908 million, driven mainly by surging gold prices and the production jump from its Lihir acquisition.

A final unfranked dividend of 20 cents was declared, in addition to a special unfranked dividend of 20 cents.

Underlying profit was up 36% on-year to $1.06 billion, coming in slightly ahead of analyst estimates.

NCM grew its FY11 output 43% to 2.5 million ounces of gold, and forecast FY12 production of 2.775 million – 2.925 million ounces.

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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.

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Mount Gibson (ASX:MGX) is Australia’s fourth-largest iron ore miner, based in Western Australia.

On 27 July, MGX announced an unaudited FY11 net profit of $239.5 million, which was up 80% on-year.

However, iron ore production fell 26% in the same period, with lower costs the primary driver of the profit result.

MGX shares slumped 4.3% on the day, making it one of the worst performers in the Australian stock market.

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BHP Billiton (ASX:BHP) is the world’s largest diversified resources company, with a global portfolio of high quality assets and more than 100 operations in 25 countries.  It is also the biggest company by market cap in the Australian share market, and is considered among the blue chip stocks.

It is an industry leader in most of the major commodities markets, including aluminium, coking and thermal coal, copper, manganese, iron ore, uranium, nickel, silver and titanium. On top of this, BHP has sizeable interests in oil, gas, natural gas and diamonds.

Last week, BHP made a US$15 billion takeover offer for US gas producer, Petrohawk Energy.

The all-cash offer will significantly expand BHP’s oil and gas assets, and in particular, its shale gas holdings in the US,

The deal also signals that BHP is betting the US will turn to unconventional sources of energy, such as shale gas, in an attempt to wean itself of foreign oil.

The offer was unanimously recommended by Petrohawk directors.

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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%.

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Resolute Mining (RSG) is a gold mining and exploration company, operating primarily in Africa and Australia.

The group’s portfolio focus is on Africa, but the miner also has projects in Australia, Mali and Tanzania.

RSG has three operating mines: Golden Pride in Tanzania, Ravenswood in Queensland, and the newly re-developed Syama in Mali, which was once a BHP Billiton operation.

RSG’s operations are well-placed, and exploration is likely to lead to further resource discoveries, underground, and in nearby pits.

The company continues to benefit from a boom in gold prices.

Golden update

RSG this week provided its Group gold production and cash cost guidance for FY12.

Gold production in the coming year is forecast to increase to 410,000 ounces at a cash cost of $730 per ounce.

This cements RSG’s position as the second largest primary listed gold producer on the ASX.

It also represents a substantial increase in production and reduction in cash costs.

RSG’s continued improvement in outlook is underpinned by ongoing progress being achieved at the Syama operation in Mali.

Resolute mining shares surged 7.6% on the back of the news.

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