Actual earnings this week will be few in Australia – CIMIC’s half year and the full year figures for Djerriwarrh Investments (stablemate to last week’s Mirrabooka Investments) but the big news reports will the June quarter, full year and half year production reports from the country’s major miners.
This week will see quarterly reports from Rio Tinto (June quarter and half year) on Tuesday and BHP on Wednesday – June quarter and a full year.
Both miners will reveal important data on iron ore – actual production and sales for the quarter, half and full year, to be compared to revised guidance after Cyclone Veronica in March.
In the case of Rio Tinto, the company will reveal the impact of not only Veronica but fires at two of its Cape Lambert export terminals in January and March and the continuing mining problems at its Brockman mining hub in the Pilbara, which is its largest iron ore production zone.
Rio has already cut guidance twice this year and the outlook for the rest of 2019 and 2020 is clouded by the problems at Brockman.
On top of that mining costs per tonne will rise because output and exports will lower.
Both miners will be saved by the surge in iron ore prices this year – in the case of BHP, since late last year. The tonnage lost since January for Rio is revenue forgone. BHP (and Fortescue, which reports next week) will be less impacted.
South32 is also down to release its June quarter and full year production and sales reports this week.
Besides these giants, major oil and gas groups, oil Search, Woodside and Santos will release June quarter production and sales reports this week.
