In Dannemora Mineral`s interim report for the third quarter of 2011, the Company announced that additional investments of SEK 120 million in new, safer and more efficient ramp systems in the Dannemora iron ore mine had been approved. The report also announced increased costs of SEK 22 million related to consulting support in the Company`s investment project and an increase in tied-up working capital of SEK 20-30 million due to the construction of a quality assurance store over in Hargshamn.
Since then the Company has been actively working to reduce the need for additional financing. This has led to shifts in non-time-critical investments and various measures to free up working capital.
The fact that Dannemora`s investment project has progressed without disruption or cost overruns and the production start-up date will be met also means the Company will quickly arrive at a situation of positive cash flows.
It is Dannemora Mineral`s assessment that the Company`s additional capital requirement for financing the Dannemora iron ore mine in the period until a positive cash flow is achieved amounts to approx. SEK 100 million. The Company does not expect this need for additional financing to arise until some time after commercial operation has started at the Dannemora iron ore mine.
Dannemora Mineral also believes that the capital requirement should be funded by equity. Consequently, Dannemora Mineral plans to implement a new share issue of approx. SEK 100 million sometime during the next 6-month period, when the capital market is considered beneficial. The new share issue is likely to be implemented without preferential rights for existing shareholders
Read Press release below
Press release 21 Februrary 2012
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Dannemora Mineral AB via Thomson Reuters ONE
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2012年2月21日星期二
2012年1月12日星期四
Bank profit reports could be lifted by business loans
(Reuters) – A recent rise in loans to businesses is spurring hope that U.S. bank earnings reports, which begin on Friday, will show the outlook for this economically critical industry is better than battered stock prices and weak investment banking volumes suggest.
Loans by large banks to commercial and industrial companies picked up sharply through the last week of the year, according to Federal Reserve data, and in recent days have started to catch the attention of investors.
“Loan growth will be one of the hottest topics throughout the earnings season,” said David Long, a bank stock analyst at Raymond James & Associates.
A lasting upturn in demand for loans to finance investment would be good for the economy and, in turn, rebuild profits from consumer lending, investment banking and asset management.
Promising signs in loan portfolios, though, are expected to be countered by another rough patch for capital markets businesses. Banks are also still trying to shake off mortgage-related losses tied to the housing bust and struggling to increase revenue in the face of new regulations that crimp the fees they can charge for debit card swipes.
JPMorgan Chase & Co, the biggest U.S. bank, is scheduled to report fourth-quarter and full-year results on Friday morning, kicking off the earnings season for financial companies. The report will break out results from JPMorgan’s large investment banking, business lending, and consumer franchises, which could foreshadow earnings reports in the next two weeks from companies concentrated in those segments.
Bank of America Corp, Citigroup Inc , Wells Fargo & Co , Goldman Sachs Group Inc and Morgan Stanley report the following week after the Martin Luther King holiday.
JPMorgan is expected to report earnings per share that are 18 percent lower than in the same period a year earlier, according to analysts surveyed by Thomson Reuters I/B/E/S. Estimates for Bank of America, on the other hand, call for the bank to rebound from a loss at the end of 2010 amid a raft of unusual charges for bad mortgages.
Quarterly earnings for the broader financial sector represented by about 80 large companies, including insurance companies and money management firms, are expected to be down about 1.6 percent from a year earlier, according to Thomson Reuters I/B/E/S.
Bank analysts and investors, though, will be looking beyond year-ago profit comparisons to what institutions reveal about current profit margins for lending, cost controls, regulatory burdens and any change in demand from borrowers for money.
Weak demand from consumers who borrowed too much during the housing bubble has combined with tougher requirements from governments for financial safety to push bank stocks down to record lows compared with the companies’ earnings and net worth, also known as book value.
That is why solid new business loan growth could alter the industry’s outlook. In fact, bank stocks are off to a strong start this year on hopes the worst is behind the industry. The KBW Bank Index is up 10 percent this year, while Bank of America shares, down nearly 60 percent in 2011, have surged 24 percent.
“If we do see some loan growth, that starts to reflect that the economy is starting to stabilize and we’re starting to see some growth,” said Marty Mosby, analyst with Guggenheim Partners. “As banks start to see some lending growth that turns into some job growth.”
Outstanding loans to commercial and industrial businesses by large banks grew 5.2 percent in the fourth quarter through December 28, according to Federal Reserve data. That is more than a 20 percent annualized rate and an acceleration from the 3.1 percent and 3.4 percent increases in the two previous quarters, said Long.
To be sure, much of the increase was likely not so much additional demand from companies as it was a shift in market share of existing borrowings, said Long. European banks lending to U.S. companies backed away to trim their balance sheets in the sovereign debt storm. And bond investors in the capital markets gave up some of the business when they were unwilling to refinance large loans as cheaply as large U.S. banks.
“It isn’t an indication of super-charged growth,” Mike Mayo, an analyst with CLSA and author of “Exile on Wall Street: One Analyst’s Fight to Save Big Banks from Themselves,” said in an interview.
CONTINUING CHALLENGES
More business loans are especially important because loans to consumers and loans for commercial and residential real estate have declined from their levels a year ago, according to Paul Miller, an analyst at FBR Capital Markets.
Miller cautions the earnings reports could include unpleasant surprises. For example, some banks may decide to take charges to clear their books of inflated values on assets before they start the new year. Charges like those will not be as easily offset as in recent quarters, when improving consumer creditworthiness allowed banks to reverse the large reserves they booked for bad loans.
“I don’t think we will get the improvements in credit like we’ve seen in the past,” said Miller.
Other challenges for banks in the fourth quarter, according to Miller, include reduced income from debit card swipe fees and tighter net interest margins – the spread between what banks make on loans versus what they pay on deposits.
To make up for lost revenue, banks are tightening their belts. Bank of America said it will eliminate 30,000 jobs in the consumer bank and staff functions over the next few years. It is also preparing for cutbacks in capital markets and wealth management operations, starting this spring. Wells Fargo is looking to reduce quarterly expenses by $1.5 billion by the fourth quarter of this year through a wide-ranging efficiency program, that also includes job cuts.
EUROPEAN UNCERTAINTY REMAINS
Analysts expect Goldman Sachs and Morgan Stanley to report the worst annual earnings since the financial crisis, due to tremendous market volatility stemming from the European sovereign debt crisis. Big swings in stock and bond prices led clients to pull back sharply on trading and deal-making.
Overall investment banking revenue declined 9 percent across Wall Street compared with the third quarter, which was already weak, according to a report by JPMorgan analyst Kian Abouhossein. He expects banks to report a quarterly decline of 17 percent in deal-making revenue, with a 3 percent drop in fixed income trading revenue and a 2 percent drop in equities trading revenue.
Investors remain concerned about Wall Street’s exposure to Europe, as well as whether big banks’ trading desks can earn more than their cost of capital, given market stress and new regulations that aim to cut back on risk-taking.
Goldman Sachs is expected to report fourth-quarter earnings of $1.50 per share, less than half of what it earned in the year-ago period, according to Thomson Reuters data. Morgan Stanley is expected to report a loss of 56 cents per share due to a special charge related to a settlement with MBIA Inc. It earned 41 cents a share in the year-earlier quarter.
Analysts do not see an end to the investment banking woes any time soon, which explains why both Goldman and Morgan Stanley have outlined plans to lay off staff and are expected to cut bonuses by billions of dollars to trim costs. Fourth-quarter reports will provide more insight on the compensation the firms have set aside for the year.
“Unfortunately, we do not anticipate a robust capital markets recovery in 2012,” Brad Hintz, an analyst at the brokerage Sanford Bernstein & Co and a former Morgan Stanley treasurer, said in a recent report.
(Reporting by David Henry in New York and Rick Rothacker in Charlotte, North Carolina. Additional reporting by Lauren Tara LaCapra in New York; editing by Andre Grenon)
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Loans by large banks to commercial and industrial companies picked up sharply through the last week of the year, according to Federal Reserve data, and in recent days have started to catch the attention of investors.
“Loan growth will be one of the hottest topics throughout the earnings season,” said David Long, a bank stock analyst at Raymond James & Associates.
A lasting upturn in demand for loans to finance investment would be good for the economy and, in turn, rebuild profits from consumer lending, investment banking and asset management.
Promising signs in loan portfolios, though, are expected to be countered by another rough patch for capital markets businesses. Banks are also still trying to shake off mortgage-related losses tied to the housing bust and struggling to increase revenue in the face of new regulations that crimp the fees they can charge for debit card swipes.
JPMorgan Chase & Co
Bank of America Corp
JPMorgan is expected to report earnings per share that are 18 percent lower than in the same period a year earlier, according to analysts surveyed by Thomson Reuters I/B/E/S. Estimates for Bank of America, on the other hand, call for the bank to rebound from a loss at the end of 2010 amid a raft of unusual charges for bad mortgages.
Quarterly earnings for the broader financial sector represented by about 80 large companies, including insurance companies and money management firms, are expected to be down about 1.6 percent from a year earlier, according to Thomson Reuters I/B/E/S.
Bank analysts and investors, though, will be looking beyond year-ago profit comparisons to what institutions reveal about current profit margins for lending, cost controls, regulatory burdens and any change in demand from borrowers for money.
Weak demand from consumers who borrowed too much during the housing bubble has combined with tougher requirements from governments for financial safety to push bank stocks down to record lows compared with the companies’ earnings and net worth, also known as book value.
That is why solid new business loan growth could alter the industry’s outlook. In fact, bank stocks are off to a strong start this year on hopes the worst is behind the industry. The KBW Bank Index is up 10 percent this year, while Bank of America shares, down nearly 60 percent in 2011, have surged 24 percent.
“If we do see some loan growth, that starts to reflect that the economy is starting to stabilize and we’re starting to see some growth,” said Marty Mosby, analyst with Guggenheim Partners. “As banks start to see some lending growth that turns into some job growth.”
Outstanding loans to commercial and industrial businesses by large banks grew 5.2 percent in the fourth quarter through December 28, according to Federal Reserve data. That is more than a 20 percent annualized rate and an acceleration from the 3.1 percent and 3.4 percent increases in the two previous quarters, said Long.
To be sure, much of the increase was likely not so much additional demand from companies as it was a shift in market share of existing borrowings, said Long. European banks lending to U.S. companies backed away to trim their balance sheets in the sovereign debt storm. And bond investors in the capital markets gave up some of the business when they were unwilling to refinance large loans as cheaply as large U.S. banks.
“It isn’t an indication of super-charged growth,” Mike Mayo, an analyst with CLSA and author of “Exile on Wall Street: One Analyst’s Fight to Save Big Banks from Themselves,” said in an interview.
CONTINUING CHALLENGES
More business loans are especially important because loans to consumers and loans for commercial and residential real estate have declined from their levels a year ago, according to Paul Miller, an analyst at FBR Capital Markets.
Miller cautions the earnings reports could include unpleasant surprises. For example, some banks may decide to take charges to clear their books of inflated values on assets before they start the new year. Charges like those will not be as easily offset as in recent quarters, when improving consumer creditworthiness allowed banks to reverse the large reserves they booked for bad loans.
“I don’t think we will get the improvements in credit like we’ve seen in the past,” said Miller.
Other challenges for banks in the fourth quarter, according to Miller, include reduced income from debit card swipe fees and tighter net interest margins – the spread between what banks make on loans versus what they pay on deposits.
To make up for lost revenue, banks are tightening their belts. Bank of America said it will eliminate 30,000 jobs in the consumer bank and staff functions over the next few years. It is also preparing for cutbacks in capital markets and wealth management operations, starting this spring. Wells Fargo is looking to reduce quarterly expenses by $1.5 billion by the fourth quarter of this year through a wide-ranging efficiency program, that also includes job cuts.
EUROPEAN UNCERTAINTY REMAINS
Analysts expect Goldman Sachs and Morgan Stanley to report the worst annual earnings since the financial crisis, due to tremendous market volatility stemming from the European sovereign debt crisis. Big swings in stock and bond prices led clients to pull back sharply on trading and deal-making.
Overall investment banking revenue declined 9 percent across Wall Street compared with the third quarter, which was already weak, according to a report by JPMorgan analyst Kian Abouhossein. He expects banks to report a quarterly decline of 17 percent in deal-making revenue, with a 3 percent drop in fixed income trading revenue and a 2 percent drop in equities trading revenue.
Investors remain concerned about Wall Street’s exposure to Europe, as well as whether big banks’ trading desks can earn more than their cost of capital, given market stress and new regulations that aim to cut back on risk-taking.
Goldman Sachs is expected to report fourth-quarter earnings of $1.50 per share, less than half of what it earned in the year-ago period, according to Thomson Reuters data. Morgan Stanley is expected to report a loss of 56 cents per share due to a special charge related to a settlement with MBIA Inc
Analysts do not see an end to the investment banking woes any time soon, which explains why both Goldman and Morgan Stanley have outlined plans to lay off staff and are expected to cut bonuses by billions of dollars to trim costs. Fourth-quarter reports will provide more insight on the compensation the firms have set aside for the year.
“Unfortunately, we do not anticipate a robust capital markets recovery in 2012,” Brad Hintz, an analyst at the brokerage Sanford Bernstein & Co and a former Morgan Stanley treasurer, said in a recent report.
(Reporting by David Henry in New York and Rick Rothacker in Charlotte, North Carolina. Additional reporting by Lauren Tara LaCapra in New York; editing by Andre Grenon)
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2012年1月4日星期三
Private equity fund raises US$16b
Blackstone Group will conclude fundraising for its latest buyout fund in January, raising just over US$16 billion ($20 billion), three people familiar with the matter said on Wednesday, in a four-year process challenged by the global financial crisis.
The fund is the largest in the market to complete its fundraising process and the sixth-biggest private equity fund ever raised, according to data firm Preqin.
Private equity firms raised US$263b in 2011, slightly less than in 2010, according to Preqin, and a far cry from the height of the buyouts boom leading up to 2007, when they pulled in around US$600b a year.
The size of the fund that Blackstone was able to raise in this environment shows that pension funds and other investors are getting more picky about which private equity firms they trust their money with. Some investors are also getting better deals on fees by negotiating large commitments.
“I don’t think we will see a large private equity fund like this closing for a few years,” said Sandler O’Neill & Partners analyst Michael Kim.
Fundraising for the latest buyout fund, Blackstone Capital Partners VI LP (BCP VI), began at the start of 2008 and the firm kicked off the fund’s investment period on January 7, 2011, giving it a 12-month deadline to reach final fundraising close, the people said.
Blackstone had already pushed back the final close as late investors asked for time to get approval from their investment committees and conduct their due diligence. A June 2010 memo by private equity advisor PCG Asset Management to the Oregon Public Employees’ Retirement Fund listed June 30, 2010 as the expected final closing date.
In November, Blackstone said it had raised over US$14b for the fund and Chief Operating Officer Tony James said the number will end up with close to US$15b.
But in July 2011, Blackstone Chief Executive Steve Schwarzman said the fund had topped US$16b and predicted that it would likely will be the largest to be raised for the next two or three years. The amount has remained about the same since then, the sources said.
Blackstone declined to comment.
NEGOTIATING A BETTER DEAL
BCP VI has attracted some of the world’s largest private equity investors, including the California Public Employees’ Retirement System and Canada Pension Plan Investment Board, according to disclosures by these pension funds.
Some investors took advantage of the protracted fundraising period either to tap a previously unavailable private equity allocation or negotiate a better deal.
Last month, the New Jersey Division of Investment said it planned to invest US$50 million in BCP VI as part of an investment programme across Blackstone’s alternative asset platforms that will total up to US$2.5b.
The New Jersey pension fund manager will pay a blended 1.3 per cent management fee on committed capital during the fund’s investment period and 0.75 per cent on invested capital after the period ends, as well as options for management fee offsets that Blackstone offered, according its investment committee report.
Private equity firms typically charge around 1.5 per cent of committed capital as a management fee, but investors may pay different fees based on the size of their commitments.
“Fundraising takes longer these days; this is not unique to Blackstone. But big investors are looking to give money to fewer private equity managers and the likes of Blackstone are a beneficiary of that,” Kim said.
BCP VI’s predecessor, BCP V, remains the largest private equity fund ever to be raised at US$21.7b, according to Preqin.
BCP VI’s first acquisition deals include the US$3b takeover of healthcare IT firm Emdeon and an investment of up to US$277m in Exeter Finance, which provides financing to auto dealers.
BCP VI had invested $620 million of its capital as of September 30, according to a November 10, 2011 presentation by Schwarzman to investors. Blackstone had about US$15.1b of available capital between BCP V and BCP VI, the presentation showed. The Emdeon deal was completed in November.
While Blackstone seeks so-called “dislocation” in markets for attractive asset values, financial market turmoil also affects its ability to source debt cheaply for deals, and hence its returns and transaction size.
The firm’s shares are up almost 40 per cent from a 2011 low of US$10.51 as prospects for the US economy brightened and concerns over the euro zone’s sovereign debt crisis eased slightly.
Global private-equity backed mergers and acquisition activity picked up in 2011, with total volumes up 32.2 percent year-on-year to US$306.3b, according to Thomson Reuters data.
- Reuters
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The fund is the largest in the market to complete its fundraising process and the sixth-biggest private equity fund ever raised, according to data firm Preqin.
Private equity firms raised US$263b in 2011, slightly less than in 2010, according to Preqin, and a far cry from the height of the buyouts boom leading up to 2007, when they pulled in around US$600b a year.
The size of the fund that Blackstone was able to raise in this environment shows that pension funds and other investors are getting more picky about which private equity firms they trust their money with. Some investors are also getting better deals on fees by negotiating large commitments.
“I don’t think we will see a large private equity fund like this closing for a few years,” said Sandler O’Neill & Partners analyst Michael Kim.
Fundraising for the latest buyout fund, Blackstone Capital Partners VI LP (BCP VI), began at the start of 2008 and the firm kicked off the fund’s investment period on January 7, 2011, giving it a 12-month deadline to reach final fundraising close, the people said.
Blackstone had already pushed back the final close as late investors asked for time to get approval from their investment committees and conduct their due diligence. A June 2010 memo by private equity advisor PCG Asset Management to the Oregon Public Employees’ Retirement Fund listed June 30, 2010 as the expected final closing date.
In November, Blackstone said it had raised over US$14b for the fund and Chief Operating Officer Tony James said the number will end up with close to US$15b.
But in July 2011, Blackstone Chief Executive Steve Schwarzman said the fund had topped US$16b and predicted that it would likely will be the largest to be raised for the next two or three years. The amount has remained about the same since then, the sources said.
Blackstone declined to comment.
NEGOTIATING A BETTER DEAL
BCP VI has attracted some of the world’s largest private equity investors, including the California Public Employees’ Retirement System and Canada Pension Plan Investment Board, according to disclosures by these pension funds.
Some investors took advantage of the protracted fundraising period either to tap a previously unavailable private equity allocation or negotiate a better deal.
Last month, the New Jersey Division of Investment said it planned to invest US$50 million in BCP VI as part of an investment programme across Blackstone’s alternative asset platforms that will total up to US$2.5b.
The New Jersey pension fund manager will pay a blended 1.3 per cent management fee on committed capital during the fund’s investment period and 0.75 per cent on invested capital after the period ends, as well as options for management fee offsets that Blackstone offered, according its investment committee report.
Private equity firms typically charge around 1.5 per cent of committed capital as a management fee, but investors may pay different fees based on the size of their commitments.
“Fundraising takes longer these days; this is not unique to Blackstone. But big investors are looking to give money to fewer private equity managers and the likes of Blackstone are a beneficiary of that,” Kim said.
BCP VI’s predecessor, BCP V, remains the largest private equity fund ever to be raised at US$21.7b, according to Preqin.
BCP VI’s first acquisition deals include the US$3b takeover of healthcare IT firm Emdeon and an investment of up to US$277m in Exeter Finance, which provides financing to auto dealers.
BCP VI had invested $620 million of its capital as of September 30, according to a November 10, 2011 presentation by Schwarzman to investors. Blackstone had about US$15.1b of available capital between BCP V and BCP VI, the presentation showed. The Emdeon deal was completed in November.
While Blackstone seeks so-called “dislocation” in markets for attractive asset values, financial market turmoil also affects its ability to source debt cheaply for deals, and hence its returns and transaction size.
The firm’s shares are up almost 40 per cent from a 2011 low of US$10.51 as prospects for the US economy brightened and concerns over the euro zone’s sovereign debt crisis eased slightly.
Global private-equity backed mergers and acquisition activity picked up in 2011, with total volumes up 32.2 percent year-on-year to US$306.3b, according to Thomson Reuters data.
- Reuters
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