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Natural Resources Morning Bulletin

month=07  year=2010

27 July 2010

Natural Resources Morning Bulletin
Results
African Barrick Gold PLC - Half-yearly Results 

 

Financial Highlights:

 

·         Revenue of $424 million, up 64% year-on-year principally due to a 23% increase in production and a 28% increase in average realised gold prices to $1,155 per ounce

·         EBITDA of $196 million, up 120% year-on-year

·         Operational cash flow of $158 million, an increase of $142 million year-on-year

·         Net income of $99 million, with an EPS of 24.2 cents, up 217% year-on-year and greater than the full year 2009 result

·         Net cash position of $334 million

·         Interim dividend of 1.6 cents per share

 

BP PLC - Half Yearly Report 

 

BP p.l.c.

Group results

Second quarter and half year 2010(a)

 

 

London 27 July 2010

Top of page 1

 

Second 

First 

Second 

 

 

 

quarter 

quarter 

quarter 

 

             First half

2009 

2010 

2010 

 

2010 

2009 

 

 

 

$ million

 

 

4,385 

6,079 

(17,150)

Profit (loss) for the period(b)

(11,071)

6,947 

 

 

 

Inventory holding (gains)

 

 

(1,245)

(481)

177 

  losses, net of tax

(304)

(1,420)

3,140 

5,598 

(16,973)

Replacement cost profit (loss)

(11,375)

5,527 

 

 

 

 

 

 

16.76 

29.82 

(90.35)

-    per ordinary share (cents)

(60.58)

29.51 

1.01 

1.79 

(5.42)

-    per ADS (dollars)

(3.63)

1.77 

 

·       Following the explosion and subsequent sinking of the Transocean Holdings LLC operated Deepwater Horizon drilling rig in the Gulf of Mexico in April 2010, BP and US Government authorities have been conducting unprecedented oil spill response activities. These ongoing efforts have sought to halt the flow of hydrocarbons from the well, capture and contain oil that has been leaking, protect the shores and clean up oil that has reached the shores. BP's own investigation, as well as several independent investigations, into the cause of the accident are ongoing.

·       BP's second quarter replacement cost loss was $16,973 million, compared with a profit of $3,140 million a year ago. For the half year, replacement cost loss was $11,375 million compared with a profit of $5,527 million a year ago.

·       The group income statement for the second quarter reflects a pre-tax charge of $32.2 billion related to the Gulf of Mexico oil spill. This includes $2.9 billion which has been charged for costs incurred to 30 June 2010. All charges relating to the incident have been treated as non-operating items. For further information on the Gulf of Mexico oil spill and its consequences see pages 2 - 5, Note 2 on pages 25 - 28, Principal risks and uncertainties on pages 33 -39 and Legal proceedings on pages 40 - 43. Further information on BP's second quarter results is provided below.

·       Non-operating items and fair value accounting effects for the second quarter, on a post-tax basis, had a net unfavourable impact of $21,953 million compared with a net favourable impact of $202 million in the second quarter of 2009. For the half year, the respective amounts were $22,002 million unfavourable and $8 million favourable. See pages 6, 21 and 22 for further details.

·       Finance costs and net finance income or expense relating to pensions and other post-retirement benefits were $214 million for the second quarter, compared with $321 million for the same period last year. For the half year, the respective amounts were $442 million and $689 million.

·       The effective tax rate on replacement cost profit or loss for the second quarter and half year was 30% and 27% respectively, compared with 35% and 36% a year ago. Excluding the impact of the Gulf of Mexico oil spill, the effective tax rate for the second quarter was 35% and for the half year was 34%.

·       Net cash provided by operating activities for the quarter and half year was $6.8 billion and $14.4 billion, including a $2.1-billion cash outflow relating to the Gulf of Mexico oil spill response, compared with $6.8 billion and $12.3 billion respectively a year ago.

·       Total capital expenditure for the second quarter and half year was $6.2 billion and $10.9 billion respectively. Organic capital expenditure(c) in the second quarter and half year was $4.4 billion and $8.2 billion respectively. Organic capital expenditure for 2010 and 2011 is expected to be around $18 billion a year. Disposal proceeds were $0.7 billion for the quarter and $0.8 billion for the half year. The group plans to dispose of assets with a value of up to $30 billion over the next 18 months, including $7 billion from the recently announced disposals to Apache Corporation.

·       Net debt at the end of the quarter was $23.2 billion, compared with $27.1 billion a year ago. The ratio of net debt to net debt plus equity was 21% compared with 22% a year ago. The net debt ratio at the end of the second quarter 2010 was impacted by the reduction in equity arising from the liabilities we have recognized in relation to the Gulf of Mexico oil spill. The group intends to reduce net debt to $10-15 billion within the next 18 months.

·       Cash costs(d) for the second quarter and half year were slightly lower than a year ago. Cash costs do not include amounts relating to the Gulf of Mexico oil spill.

 

Trading Statements / Contract Wins / Acquisitions:
Chaarat Gold Holdings Ltd - Completion of Acquisition of Kyrex Limited 

 

Chaarat Gold Holdings Limited (AIM: CGH) is pleased to announce that, further to the Company's announcement of 15 July 2010 regarding the proposed acquisition of Kyrex Limited ("Kyrex") (the "Offer"), all conditions relating to the Offer have now been satisfied.

 

The Offer comprised 54 fully paid Chaarat ordinary shares of US$0.01 each for each Kyrex share.  The aggregate consideration for the whole of the issued and to be issued share capital of Kyrex comprises 11,928,222 shares (the "New Shares"), which equates to 9.73 per cent. of the Company's issued share capital prior to the issue of the New Shares.

 

The New Shares will be issued under the existing power granted to the Directors to allot shares.  Application has been made and it is expected that the New Shares will be admitted to trading on AIM on 28 July 2010.  Following the admission of the New Shares to trading on AIM there will be 134,473,900 ordinary shares in issue.

 

Horizonte Minerals PLC - Acquisition of Teck Cominco Brasil S.A. 

Commenting on the transaction, Jeremy Martin, CEO of Horizonte said: "This is a transformational deal for Horizonte and takes the Company to the next level in terms of valuation.  The consolidation of the Araguaia and Lontra nickel projects creates the potential for a 100 million tonne resource with grades comparable to other world-class projects in Brazil.  The Company will be initiating an 8,000 metre resource drilling programme in the next few weeks, with the aim of delivering a JORC-compliant resource by the first quarter of 2011.

"Horizonte now has two committed major mining partners: AngloGold Ashanti Limited, with a £5.3 million exploration alliance to generate and develop new gold targets in Brazil, and Teck, our new strategic 50 per cent. shareholder, with whom we look forward to working as we fast-track development at Araguaia towards production.

"The successful fundraising of £5.13 million completed at a premium shows the strong support by our institutional investors in the new enlarged Company and in the value that has been created by this transaction."

Tullow Oil PLC - Completion of Acquisition 

Commenting today, Aidan Heavey, Chief Executive, said:

"This is a major step forward for Tullow and the Ugandan oil industry. We now look forward to signing the farmdown agreements with CNOOC and Total in the coming weeks and commence work with them on an accelerated basin-wide development plan that is expected to deliver production well in excess of 200,000 bopd from the Albert Rift Basin."

Kentz Corporation Ltd- PNG LNG Contract 

Kentz Corporation Limited, the holding company of the Kentz Engineering and Construction Group, confirms that it has entered into a contract with Chicago Bridge and Iron (CB&I) and Clough to design and build the construction camp for the Papua New Guinea (PNG) LNG Project's Hides Gas Conditioning Plant.

Share Dealing:
Ingalls & Snyder, LLC - Form 8.3 - Caledon Resources PLC 
Miscellaneous:
GMA Resources PLC - Directorate Change 
AIM- Restoration - Horizonte Minerals plc 
Conroy Diamonds & Gold PLC - Appointment of Broker 
Jubilee Platinum PLC  - Board changes and Director appointment 
Xstrata PLC - Production Report for 6 months ended 30 June 2010 
African Aura Mining Inc. - Nkout Update 
Medusa Mining Limited - Directorate change 
Noventa Limited- Operations Update 
Patagonia Gold PLC - PROGRESS REPORT 
Global Petroleum Ltd - Quarterly Report 
Heritage Oil PLC - Completion of sale of Ugandan interests 
BP PLC - BP SETS OUT GoM COSTS, ASSETS SALES, PERFORMANCE 
BP PLC - Directorate Change 
Schlumberger Ld - Schlumberger-Smith Merger Receives Unconditional Clearance from European Commission 
Newspaper Investment Highlights:

 

Times – Need To Know

Copper: The price of copper reached a ten-week high, boosted by expectations of

improving prospects for demand growth and a rebound in home sales data in the United States. The price rose to $7,095 a tonne from $7,030 on Friday. The metal reached $7,130 a tonne in early trading, its highest level since May 13.

 

Amec: A group of mining companies ended its month-long truce with Julia Gillard,

the Australian Prime Minister, vowing to launch an advertising campaign against a resources profits tax before the national election. The Association of Mining and Exploration Companies, which represents small and medium-sized miners, said the decision was not politically motivated but was driven by the tax's risk to investment and jobs. The mining industry called a halt to its war of words with the Government after Ms Gillard ousted the former leader Kevin Rudd, who had been unwilling to negotiate on the 40 per cent tax rate.