Chinese steel makers won’t pay Australian iron producers a premium for shipping costs. Gold and copper producer Oxiana plans to invest AU$1b in its Prominent Hill mine. Lihir Gold dropped its production forecast by 50,000 ounces. JB Hi-Fi expects sales to increase by 33% this financial year. The drought is taking its toll on wheat growers, who could lose AU$4 billion worth of crops. And US housing prices are dropping at an ever-increasing rate.
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China sends warning to BHP Billiton, Rio Tinto
Chinese steel makers had a message for BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) yesterday. They won’t be paying shipping costs for Australian iron ore. Rio is arguing that Australia’s close proximity to Asia means Chinese steel makers should pay a premium on iron shipments.
Oxiana to outlay $1bn on copper and gold
Oxiana (ASX:OXR) projects its Prominent Hill copper/gold mine will require a AU$1.08 billion investment. This is a 27% increase on last year’s estimate. But Oxiana also predicts that the mine will have paid for itself within 18 months.
Lihir shares tumble 7% after downgrade
Lihir Gold (ASX:LGL) lowered its gold production guidance by 50,000 ounces yesterday. Workers at the company’s Lihir mine went on strike last month. Shares in Lihir lost over 7% yesterday.
JB Hi-Fi forecasts higher sales
JB Hi-Fi (ASX:JBH) is forecasting a 33% increase in full-year sales. The month of December will be an important period for the company to consolidate good results so far in FY2008.
Dire wheat harvest forecast
The drought could cost Australian wheat growers AU$4 billion this year. The Australian Bureau of Agricultural and Resource Economics has lowered its crop forecast by 22% since September.
Home prices falling at record pace in August
US home prices fell by 0.7% in August, according to an index released by Standard and Poor’s. This is a record for the index. The last time America’s housing had such a slump, it took 8 years to recover.
All the best,
Al Robinson
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