Iron Ore The World’s Most Volatile Commodity and Not About To Slow Down

Iron ore has been a clear leader from the early days of the raw materials rally. It is also the most volatile. Volatility is fed by the ongoing trade war between the world’s biggest producer of iron ore, Australia and one of the biggest users, China.

BHP Shows Perfect Timing With Iron Ore at Record Highs Production Starts At South Flank Mine

Australian mining giant BHP is in sync to replace diminishing iron ore output from it’s existing Yandi mine which is nearing the end of its life. The first ore from its $4.6 billion South Flank mine in the Pilbara, WA was mined this month. 

BHP Writes Down Australian Thermal Coal Mine $1.6 Billion

BHP continues to write down it’s fossil fuel assets cutting up to $1.6 billion from the value of its Mt Arthur thermal coal mine in the Hunter Valley. BHP sold its U.S. shale assets to Britain’s oil major BP for $10.5 billion in 2018 selling off “non-core and we are actively pursuing options to exit these assets for value”.

Caterpillar Earnings Miss as Dealers Decrease Inventories, Lower China Demand

Global industrial equipment manufacturer Caterpillar reported worse than expected third quarter 2019 EPS before the market open Wednesday and again warned that China demand was falling. $CAT fell 2.5% but reversed to close up 1.2% on the day. Caterpillar also lowered full-year earnings guidance.

Newmont Mining Swings to Profit on Steady Gold and Copper Production

Gold and copper producer Newport Mining reported better than expected fourth quarter earnings Thursday with steady gold and copper production and lower operational costs. NEM agreed to acquire Goldcorp (GG) for $10 billion in an all-stock deal last month.

Caterpillar Earnings Miss Despite North America Oil and Gas Revenue Increases

Global industrial equipment manufacturer Caterpillar reported worse than expected fourth quarter 2018 EPS before the market open Monday after last quarter issuing weaker guidance due to global and trade tensions which have hit the stock price.

South Africa Raises Interest Rates Despite Lowering Growth and Inflation Forecasts

The South African Reserve Bank (SARB) increased its benchmark interest rate for the first time in over two years seeking to get ahead of what it sees as elevated inflation risks. The decision was split and comes depite cutting GDP and infaltion estimates.