Mining

ANALYSIS: Rubbery figures and projections aside, WA’s iron ore miners are breathing a little easier thanks to improving prices and a favourable exchange rate.

Shares in Decmil Group tumbled 18 per cent today after the contractor posted a big half-year loss, cut its dividend, and indicated more restructuring was needed.

Copper and gold miner Sandfire Resources has reported a near-50 per cent fall in half-year profit, but shareholders will still receive an interim payout.

After a solid start to the financial year, mining equipment supplier Emeco Holdings has posted a $107.2 million half-year loss as a result of impairments to its Canadian business.

The board and management of Western Areas will take a pay cut after the nickel miner slumped into the red with a $20 million half-year net loss.

Mining group South32 plans to cut 390 jobs at its Worlsey Alumina operation in Western Australia’s South West, as part of a global cost-cutting drive following its $US1.7 billion ($A2.4 billion) loss for the half year to December.

Blackham Resources hopes to begin producing at its Matilda gold project near Wiluna within six months, after a definitive feasibility study confirmed it will cost $32 million to bring the mine into production.

Local gold miners Saracen Mineral Holdings, Silver Lake Resources and St Barbara reported a profitable six months, however shareholders won’t be seeing any returns in the form of dividends.

Waste management company Tox Free Solutions has posted a slight increase in profit despite a dip in revenue, but has increased its return to shareholders.

The downturn in mining and construction activity in Western Australia has delivered a mixed bag of results for several contractors today, with the major surprise being a downgrade in MACA's revenue outlook.

Iron ore miner Fortescue Metals Group will continue slashing costs after first-half profit dropped 4 per cent to $US319 million ($A442 million), as fellow miner BC Iron reported a half-year loss of $62.9 million amid falling prices.

Shares in Atlas Iron have surged despite the iron ore miner reporting a half-year loss of $114 million.

Power generation company Pacific Energy has won a contract to supply electricity to Doray Minerals’ Deflector gold project in the Murchison region for an undisclosed sum.

WorleyParsons aims to offload more than $100 million of assets after a 77.9 per cent slump in first half profit led it to scrap its interim dividend.

Local waste management company Tox Free Solutions has won a new contract for work at BHP Billiton’s Olympic Dam mine in South Australia, along with an extension for ongoing work at Chevron’s Western Australian assets, for an undisclosed sum.

Perth-based GR Engineering Services has delivered a strong result despite the doom and gloom of the resources sector, announcing today a rise in profit and an increased dividend payout.

The legal battle between BC Iron and Watpac Civil & Mining has intensified with the mining services company serving a counterclaim to the iron ore miner and its joint venture partner, now seeking about $52.8 million.

BHP Billiton has responded to its mammoth interim loss and the prospect of a prolonged downturn by slashing its dividend and adopting a new management structure that leaves Western Australia without a representative in the company’s leadership group.

Perth-based contractor NRW Holdings has enjoyed another active day on the ASX, closing nearly 50 per cent higher after nearly tripling in value on Friday.

Newcrest Mining will pay $36 million to settle a class action launched by shareholders who claimed the gold miner had misled them.

Gold miner Beadell Resources has received commitments for a $50 million capital raising to fund exploration to build its mining inventory.

Mineral sands miner Iluka Resources has swung back to profit but says market conditions for its products remain subdued.

Local gold miners continue to prove there is still money to be made in Western Australia’s resources playground, with Northern Star Resources, Metals X, Ramelius Resources and Saracen Mineral Holdings all closing higher on the ASX.

NRW Holdings emerged from a trading halt this morning with its share price nearly tripling in value on the back of news yesterday that its joint venture with Salini Impregilo had been named the preferred contractor for the $2 billion Forrestfield-Airport Rail link.

Shares in miner and contractor Mineral Resources were up 13 per cent today after it announced dividends of 8.5 cents per share, about 60 per cent larger than what it committed to in November.

Watpac has revealed the financial impact of a dispute with BC Iron and declining work at Pluton Resources’ Cockatoo Island project, including $41.7 million worth of write-downs.

Evolution Mining expects to benefit from higher gold prices and renewed interest in the sector despite swinging to a $15.5 million half-year loss.

Mineral sands miner Iluka Resources has made good on its commitment to invest further in UK technology company Metalysis, announcing today a $12.2 million injection into the business with plans for another $8.1 million soon.

Southern Cross Electrical Engineering says it has won $20 million in new contracts and extensions since the start of the year, including a contract for work at BHP Billiton’s Jimblebar iron ore mine in the Pilbara.

Gold and nickel miner Independence Group has posted a first-half loss of $78 million on the back of impairments and the acquisition of Sirius Resources late last year.

Iron ore miner Mount Gibson Iron has booked another half-year loss, but it’s a substantial improvement on its performance in the previous year, despite recording a $23.6 million impairment.

Northern Star Resources says it will consider the sale of its Plutonic gold mine near Meekatharra after receiving a number of unsolicited offers from interested parties.