News Wrap

IN THIS morning’s News Wrap: Palmer could escape loss from nickel refinery collapse; silver lining in clouds over Mount Gibson; and Roy Hill says first 2016 iron ore shipment nears.

Lou Caruana

Palmer could escape loss from nickel refinery collapse

Clive Palmer could walk away from the administration linked to his Queensland Nickel refinery without losing the assets and leave creditors out in the cold, according to the Sydney Morning Herald.

It has been widely observed that Palmer's Queensland nickel refinery fell into the hands of administrators last week. But it did not.

Silver lining in clouds over Mount Gibson

With benchmark iron ore prices of about $US42 a tonne, Mount Gibson Iron management has admitted its Extension Hill mine's cash flow is marginal and, with analysts producing increasingly bearish forecasts for the price, it is only likely to get harder, according to the Australian Financial Review.

However, unlike many of its junior iron ore peers in similar positions, Mount Gibson has a substantial $345 million cash balance and this seems to have divided the market.

Roy Hill says first 2016 iron ore shipment nears

Roy Hill Holdings is gearing up for its third iron ore shipment from Australia, the first this year from the $US10 billion project backed by billionaire Gina Rinehart that will contribute to expanded global supplies, according to the Sydney Morning Herald.

“Roy Hill expects to make its third shipment in the near future,” Bill Hart, the company's spokesman, said on Friday in an emailed response to questions, without giving a specific date or period. “During January, commissioning and completion of outstanding works has continued by” Roy Hill's contractor Samsung C&T, Hart said.

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