Group items tagged

Rio Tinto has announced bumper results for H1 2008, with net earnings up 113% on the same period last year, to a record US$6,914million. Results were boosted by higher sales volumes, particularly iron ore, and the first full 6 months to include Alcan. These gains were offset in part by lower copper product volumes, primarily due to lower grades at Kennecott Utah Copper. "The effect of price movements an all major commodities was to increase earnings by US$2,790 million," said the company, following new record price levels for many of its products in the first half, including copper at 20% higher than a year earlier. The company announced an interim dividend of US68c per share, an increase of 61% on H1 2007, and re-emphasized its commitment to, "increase total 2008 and 2009 dividends by at least 20% in each year".

Kazakhmys reported H1 profits of US$610.5m, a 23.8% decrease on the same period in 2007, resulting from higher labour costs and a 9% fall in cathode output, to 174,300t, following harsh weather conditions in Q1. The group stated that, "copper output in 2008 will at least equal production from last year," implying a strong second half. The inclusion of profits from Kazakhmys' 25% stake in ENRC should also bolster H2 results. Kazakhmys intends to pursue synergy talks with ENRC, who operate predominantly in ferrochrome, iron and aluminium, despite a frosty reception so far, as ENRC reiterated that it would not offer Kazakhmys a seat on the board as they were, "both competing for deposits in the same region."

"Anglo's copper production rose 13.4% to 168,500 tons from 148,600 tons."

"Chinese commodity prices collapsed on the first day of trading after the Lunar New Year break as investors returned to markets gripped by fear over the impact the coronavirus will have on demand in the world's biggest consumer of raw materials. The country's three major commodity exchanges were hit by a fevered bout of selling as they reopened with Chinese traders getting their first opportunity to catch up with losses inflicted on overseas markets while they had been on holiday."

The full impact on copper is not known yet. We will have to wait and see how the health issue impacts manufacturing and also wait to see the China government fiscal response. Seemingly anything else at this time is speculation.

Time will tell and media does overhype. What I found noteworthy that these stories were linked to Dr Copper, which rarely happens. Agreed that we do not need to stir the hive, but I alerted Joe that he may receive lots of interest for the January edition of his index.