Anglo Asian Mining* (LON:AAZ) – Q1/16 operations update
Alecto Minerals (LON:ALO) – Matala Feasibility Study and Vendor Financing
Xtract Resources (LON:XTR) – Deferral of Chepica Option Payment
Mining equities rising on better China data and higher oil and base metal prices despite stronger US dollar
* China exports rose and imports fell less than expected with strong inflows of Copper and other metals helping to drive the numbers.
* Copper inflows into China rose by 35.7% month on month to 570,000t in March and 30.1% in Q1 to 1.43mt implying strong expected demand at Chinese traders.
* Chinese exports rose a substantial 11.5% yoy.
* Stock levels have risen in Chinese warehouses as traders move inventory and build stock levels.
Double benefit of rising oil prices and Chinese data
* Mining stocks looked ready to strengthen following their recent pull back.
* Oil and copper are being viewed by the market as a proxy for global growth and both posted new gains yesterday for differing reasons.
* Oil is rising on rumours of a supply restriction agreement between key major producers while copper is driven by strong imports into China.
* China is implementing new directives from the National People’s Congress in March and we expect to see the reactivation of many stalled / slowed infrastructure projects as the nation forges ahead with its growth plans. The anti-corruption purge may not be completely over but the nation appears to be stocking up to achieve its 6.5-7% GDP target.
BHP ceo, Mackenzie calls bottom of earnings cycle for miners as prices rise while costs fall
* Andrew Mackenzie, ceo of BHP Billiton refers to the fall has stopped if you look at a basked of commodities.
* He also says costs are going down, down down in an interview in The Australian.
* The implication is that earnings should turn around.
* Today’s positive moves in oil, iron ore copper and other base metals appears to support Mackenzie’s view
* Anglo American’s positive reaction to De Beer’s diamond sales yesterday indicates the market appears primed to react positively to further good news