AGO gets another mention in the Oz

Hey everyone thought I'd copy and paste FYI
Atlas shares fall as investors see iron ore prices drop


Iron ore

• The Australian
• 12:00AM November 17, 2016
• BARRY FITZGERALD
• 
  Resources Editor
  Melbourne
  
  

Iron ore’s federal budget deficit-busting potential is on the wane, with prices for the Australia’s biggest export earner retreating sharply from near two-year highs.
The fall from last week’s peak of $US79.70 a tonne to $US72.68 a tonne yesterday spooked equity investors in iron ore producers, particularly in the higher-cost smaller producers, with former high-flyer Atlas taking the biggest hit with a 16 per cent dive to 2c a share.
Major iron ore producers did not escape entirely. Fortescue tumbled 23c or 3.7 per cent to $5.86, BHP Billiton gave up 57c or 2.3 per cent to $23.98 and Rio Tinto, which is closing one of its mines for two weeks over Christmas, fell $2.01 or 3.4 per cent to $56.94.
Futures prices for iron ore were also hit, with speculators in Chinese markets taking on board the country’s Ministry of Industry statement on Monday that the crude steel production would decline at an annual rate of about 1 per cent between 2017 and 2020 to 650-700 million tonnes.
The forecast decline comes as major suppliers Australia and Brazil are set to increase their combined seaborne exports of iron ore by more than 85 million tonnes in the next year, with Gina Rinehart’s Roy Hill the biggest contributor to the increase.
China’s construction stimulus, and exuberance by speculators over Donald Trump’s “rebuilding America’’ infrastructure splurge, has been behind iron ore’s recent heady gains.
Even after the retreat of the last couple of days, the price remains well ahead of a year-to-date low of $US39.30 a tonne in mid-January. But analysts and the federal government’s chief commodities forecaster have warned the supply surge would eventually pull the rug on prices.
Australia’s annual iron ore exports are running at about 815 million tonnes and are forecast to increase to 877 million tonnes in 2017. Macquarie is forecasting a price retreat to $US56 a tonne in the 2017 financial year, and $US48 a tonne the following year.
Last week, BHP’s marketing chief Arnoud Balhuizen told The Australian that volatility was the order of the day in the iron ore market.
He said iron ore was trading at the high end of BHP’s expectations.
“All the fundamental signals tell me that iron ore price will go down,’’ Mr Balhuizen said. He acknowledged that BHP had been saying that for months. “But our track record on iron ore, I think, has been very good, so I still think that iron ore prices will go down, but I cannot give you the exact week or month,’’ Mr Balhuizen said. “Steel growth will be much slower than we have seen in the last 10 years, so there’s going to be a slower growth path on steel, and there’s still quite a bit of additional iron ore coming through the markets both here in Australia, as well in Brazil,’’ he said.
BHP mines will be working through the Christmas break. But about 440 workers at Rio’s Hope Downs 4 mine in the Pilbara have been ordered to take a two-week break.