News Wrap

IN THIS Morning’s News Wrap: South32 is interested in buying Anglo American's manganese stake; Rally won't last, says Liberum Capital; and Vale's fourth-quarter iron ore output falls short of analysts' estimates.

Lou Caruana

South32 is interested in buying Anglo American's manganese stake

South32 is prepared to buy Anglo American's manganese assets if the London-based miner is willing to accept a realistic offer.

The two companies share a manganese mining and smelting business that straddles Australia and South Africa, with Anglo owning 40% of the division.

Manganese is one of numerous commodity groups Anglo is looking to exit from as part of efforts to pay down debt and refocus itself on consumer products such as diamonds and platinum group metals.

Rally won't last, says Liberum Capital

Iron ore's recent gains may prove to be unsustainable and there's now a fresh opportunity for investors to bet on losses in miners' shares, according to Liberum Capital, which listed Rio Tinto Group and BHP Billiton among candidates for selling short, according to the Sydney Morning Herald.

“You could be forgiven for thinking iron ore is turning a corner,” analysts including Richard Knights and Ben Davis said in a note, citing gains in prices since December, plans by miners to cut supply growth and Chinese import data. “We don't think so and see the recent sector rally as an opportunity to re-instate shorts in Rio, Anglo and BHP.”

Vale's fourth-quarter iron ore output falls short of analysts' estimates

Vale reported iron-ore output that trailed analysts' estimates on disruptions related to a dam collapse, offering some relief in a global glut that's squeezing smaller competitors, according to the Australian Financial Review.

Output from the Rio de Janeiro-based company's mines fell to 85.4 million tonnes in the fourth quarter from 88.2Mt in the third, it reported on Thursday.

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