|Bid||906.20 x 0|
|Ask||906.60 x 0|
|Day's Range||898.00 - 910.60|
|52 Week Range||713.20 - 1,026.00|
|Beta (3Y Monthly)||1.22|
|PE Ratio (TTM)||16.45|
|Earnings Date||Aug 22, 2019|
|Forward Dividend & Yield||0.34 (3.74%)|
|1y Target Est||11.28|
(Bloomberg) -- A Barrick Gold Corp. and Antofagasta Plc joint venture was awarded $5.8 billion in damages from Pakistan over a disputed mining license, though the copper and gold project remains a long way from development.“I think, at the end of the day, Reko Diq will be developed,” Barrick Chief Executive Officer Mark Bristow said, referring to the Pakistan deposit. “The question is when, and by who.”An international tribunal run by the World Bank ordered Pakistan to pay the global mining giants after the country denied them a license to develop the copper and gold deposit in 2011. The damages include compensation of $4.09 billion for the fair market value of the Reko Diq project when the mining lease was denied, plus interest of $1.75 billion. The tribunal also awarded the joint venture just under $62 million in costs.Collecting the funds may be a challenge, given Pakistan’s fragile economic state, but the ruling may provide leverage to the mining companies if they still hope to develop the asset. “Along with our partners at Antofagasta, we remain willing to engage with Pakistan to explore the potential for a negotiated settlement,” Bristow said in a separate statement.The damages almost match the $6 billion bailout Pakistan agreed to with the International Monetary Fund two months ago to help the South Asian nation avert an economic crisis. Pakistan’s government said it will review the ruling and consider a potential petition to the tribunal.A feasibility study conducted before the 2011 standoff began showed Reko Diq to be one of the largest undeveloped copper and gold deposits in the world, capable of producing 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century. At the time, the joint venture said it had spent more than $500 million on the project. The initial capital investment would have exceeded $3 billion.Bristow and Barrick Executive Chairman John Thornton have previously suggested it would make sense to combine some of Barrick’s copper assets through partnerships. The Toronto-based miner’s operating copper assets are Jabal Sayid in Saudi Arabia and Lumwana in Zambia. On Monday, Bristow damp speculation the company might sell Lumwana, saying it might make make more sense to look at partnerships there as well.“Given the size of the award, we expect the Government of Pakistan to appeal by any route possible and to defer and delay to all and any extent possible,” Andrew Kaip, an analyst with BMO Capital Markets, said in a research note. “That said, we ascribe no value to Barrick for Reko Diq, so any settlement would be positive, in our view.”Antofagasta surged as much as 6% in London, for its biggest gain in a month, before slipping back to trade up 4%. Barrick fell 1.1% to C$21.27 in Toronto.While Antofagasta said there are limited grounds for challenging the award under the World Bank’s International Center for Settlement and Investment Disputes, the company will only recognize potential proceeds once they have been received.“It’s a step in the right direction, but they are unlikely to receive any dollars anytime soon,” said James Bell, an analyst at RBC Capital Markets. “I think the shares are a bit overdone.”The loan Pakistan agreed to with the IMF in May represents the 13th bailout since the late 1980s for a country facing a balance-of-payments crisis triggered by high fiscal and current-account deficits and dwindling foreign exchange reserves.(Updates with analyst comment in ninth paragraph)\--With assistance from Ismail Dilawar.To contact the reporters on this story: Elena Mazneva in London at firstname.lastname@example.org;Taonga Clifford Mitimingi in Lusaka at email@example.com;Danielle Bochove in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Dylan Griffiths, David ScanlanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
London markets nudged higher on Monday as China’s slowest growth rate in 27 years sparked hopes of fresh stimulus.
European markets nudged higher on Monday as investors shrugged off news that China’s GDP growth has fallen to a 27-year low.
Chilean copper miner Antofagasta Plc said on Tuesday it would ask regulators for more time to answer questions about an environmental impact study for its Zaldivar mine, which draws water from Chile's lithium-rich Atacama salt flat. Chilean regulators last year delayed their review of Zaldivar's environmental study amid rising concerns over dwindling water supplies at Atacama. The Atacama salt flat is home to lithium miners SQM and Albemarle Corp, which together produce one-third of the world's supply of the ultralight battery metal.
In December 2018, Antofagasta plc (LON:ANTO) released its earnings update. Generally, the consensus outlook from...
In December 2018, Antofagasta plc (LON:ANTO) announced its most recent earnings update, which signalled that the...
By Muvija M and Shashwat Awasthi (Reuters) - UK blue-chip stocks rose slightly on Friday, recouping the session's losses as mining stocks gave investors something to cheer about at the end of a largely ...
A trade war between the United States and China is depressing the price of copper and the red metal would be 5% to 15% higher without the dispute, the chairman for Chile's Antofagasta Plc told a Chilean newspaper on Sunday. "Without the commercial war, I am convinced that the price of copper would be between $3.20 and $3.50 per pound," Jean-Paul Luksic said in an interview with El Mercurio. The bruising trade war, which has slowed the global economy, is clouding the outlook for demand from top metals consumer China.
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The FTSE 100 and the FTSE 250 lost 0.6 percent each. Sainsbury's tumbled 4.7 percent to a near three-year low after the supermarket chain scrapped its proposed 7.3 billion pound takeover of Walmart-owned Asda after the deal was blocked by Britain's competition regulator. "The failure of securing a merger with Asda leaves the group in a bit of a vacuum, with leadership and strategic uncertainties the byproduct of the CMA's rebuttal," Jefferies analysts said.
Anglo American said on Thursday technical problems dragged first-quarter production down 6 percent, but copper output rose, as did that of iron ore from its Minas-Rio mine in Brazil, which ramped up operations after a leak last year. The stock extended losses from the prior session, when JPMorgan warned of a $900 million cut to 2020 core profit if Minas-Rio failed to obtain a Brazilian tailings permit by the end of the year. JPMorgan downgraded the stock to "neutral" from "overweight", saying the share no longer looked cheap.
Antofagasta said on Wednesday production in the quarter was bolstered by better quality ore and higher output, mainly at its Centinela mine, and kept its annual output forecast of 750,000-790,000 tonnes unchanged. The FTSE 100 company, majority-owned by Chile's Luksic family, said production in the first quarter of 2019 rose to 188,600 tonnes from 153,800 tonnes a year earlier. Total copper production at Centinela was 68,800 tonnes, 45.5 percent higher than 2018.
The global copper industry will be rocked by more disruptions this year than in 2018, contributing to a supply deficit as demand for the red metal continues to grow, the top executive of Chilean miner Antofagasta told Reuters. Antofagasta CEO Ivan Arriagada said labor strife, extreme weather and unexpected project delays will knock as much as a million tonnes off the year's total copper production, versus 600,000 the previous year. "We think this year there will be bigger disruptions than last, which was unusually tranquil," said Arriagada in an interview on the sidelines of CRU's World Copper Conference in Santiago.
Chile's Codelco, the world's biggest copper producer, is "perfectly well financed" for the next two years as it pushes forward with its largest-ever drive to revitalize its aging mines, Chairman Juan Benavides said on Wednesday. State-owned Codelco, which produces nearly one-tenth of the world’s copper, is set to shell out $40 billion in 10 years to overhaul its century-old Chuquicamata and El Teniente mines, among others. "Codelco has its finances in perfect order with respect to our requirements today," Benavides said in an interview with Reuters.
Chilean miner Antofagasta Plc will retain its dividend policy of paying out at least 35 percent of underlying net earnings but will pay out excess funds from the proceeds of sales to shareholders, its chief executive said. "If you look at the last three or four years, we have been distributing close to around 50 percent of net earnings.
Despite these challenges, the industry is planning for substantial growth in the next decade thanks to an expected boom in production of electric vehicles, which use twice as much copper as internal combustion engines. Meanwhile, global visible inventory in the form of combined stocks held by the London Metal Exchange, Comex and the Shanghai Futures Exchange have nearly halved from a year ago to around 500,000 tonnes, data from the exchanges show.
Freeport-McMoRan: Bulls Short of Ideas amid Macro UncertaintyFreeport-McMoRan Leading US-based copper miner Freeport-McMoRan (FCX) has been trading largely sideways this month, which is not surprising, considering copper price trends. Although copper
Chile's Antofagasta expects to reach an agreement with miner BHP to help ensure water supply at its Zalidvar copper mine in the country's northern desert, a company official told a Chilean newspaper on Friday. Antofagasta needs access to water for the future development of its Zaldivar copper deposit, which is near BHP's Escondida mine, the world's largest copper mine. Zaldivar's size, however, does not justify investing in its own desalination plant to bring water in from the Pacific ocean, Antofagasta has said.
By Shashwat Awasthi and Yadarisa Shabong (Reuters) - Financial stocks and housebuilders slipped after British Prime Minister Theresa May asked the European Union to delay Brexit and caused the FTSE 100 ...
The FTSE 100 was up 0.3 percent. The domestically-focused FTSE 250 was up 0.3 percent as investors waited for further Brexit developments with reports that Prime Minister Theresa May would ask the European Union to delay Brexit by at least three months. May's Brexit plans were derailed after the speaker of Britain's parliament said on Monday that her deal could not be voted on again after two thumping defeats unless a different proposal was submitted.
Chilean copper miner Antofagasta Plc announced on Tuesday a higher-than-expected dividend for 2018, sending its shares to a seven-month high, though core earnings dropped in line with analysts' projections. The company, majority-owned by Chile's Luksic family, lowered its 2018 total dividend by 14 percent to 44 cents per share compared to the prior year, but beat the 26 cents expected by analysts, according to Refinitiv Smart Estimates. "The dividend is strong and equates to a significant portion of our earnings, it's a positive surprise to what was expected," Chief Executive Iván Arriagada told Reuters.
Pakistan's military is taking a key role in the development of one of the world's biggest untapped copper and gold deposits, which is currently stalled by a multi-billion dollar legal wrangle with foreign mining firms, multiple sources familiar with the situation said. The Reko Diq mine has become a test case for Prime Minister Imran Khan's ability to attract serious foreign investment to Pakistan as it struggles to stave off an economic crisis that has forced it to seek an International Monetary Fund bailout. Ten current and former provincial and federal government officials and mining sources familiar with the project in the Baluchistan region say the military has become the most important voice on the future of Reko Diq, which it sees as a strategic national asset.