Perth Mint Release Details of Australian 2015 Bullion Coins

Perth Mint Release Details of Australian 2015 Bullion Coins

The Perth Mint has unveiled the latest designs of the Australian 2015 Bullion Coin Program to an audience of financiers and investors in Frankfurt, Germany – its number one market for gold and silver bullion coins.

Perth Mint Release Details of Australian 2015 Bullion Coins

Showcasing the charming qualities of Australia’s kangaroo, koala, kookaburra and platypus; and portraying the elegant personality of the Chinese Lunar goat, this investment program amplifies The Perth Mint’s rich tradition of minting excellence.

Comprising 99.99% pure gold coins ranging in sizes from 1/20oz to 10 kilos, 99.9% pure silver coins from 1/2oz to 10 kilos, and a special 1oz 99.95% pure platinum piece; these stunning coins are released with select mintage limits and distinguished designs.

This coming year, the 2015 bullion program will highlight the 25th anniversary of the Australian Kookaburra with each coin in the silver series replicating the original artistry featured in its introductory year of 1990.

Each coin is issued as legal tender under the Australian Currency Act 1965 and reflects the Ian Rank-Broadley effigy of Her Majesty Queen Elizabeth II on its obverse.

Perth Mint Sales and Marketing Director, Ron Currie, said that European investors purchased 1.6 million investment coins in this past year. “We expect these authentic designs to prompt further purchases from established clients, as well as capture the interest of new investors throughout Europe and across the world,” he added.

The four smaller coins from the Australian Kangaroo gold series will illustrate a bounding kangaroo as it crosses the Australian outback with the moon in the background. To complement this artistry, the kilo release will feature a leaping red kangaroo circled by rays of sunlight.

The design of the Australian Kookaburra silver coin series will display an adult kookaburra sitting on a tree stump surrounded by eucalyptus leaves and a fern, while the latest Australian Koala silver coins will depict a mature koala sitting in a tree with an Australian bush landscape in the background.

Maintaining its classic design, the Australian Platypus coin will showcase the unique creature swimming among reeds surrounded by air bubbles.

Featuring an Eastern theme, the 2015 designs of the Australian Lunar coin series will celebrate the Year of the Goat. The gold coins will capture a goat standing on a ridge with mountains in the background, while the silver issues will depict a family of goats standing amid a stylised rural scene.

Scheduled for release over the next four months, the Australian Lunar and Kookaburra series will be available from September, followed by the Kangaroo in October, the Koala in November, and the Platypus in January.

The 2015 Australian Bullion Coin Program is available from the Bullion Trading Desk at The Perth Mint, 310 Hay Street in East Perth. The investment offerings can also be ordered via the Mint’s dedicated BullionLine 1300 201 112 (Australia), +61 8 9421 7218 (International), or online at www.perthmintbullion.com Investors can also check the availability of the releases with leading bullion coin dealers.

See the latest video on the 2015 Australian Bullion Coin Program at The Perth Mint’s YouTube channel

See more at: http://australiasilver.com/perth-mint-unveils-australian-2015-bullion-coin-program/#sthash.XnzMeWu0.dpuf 

Iron Ore Warning: High Spending Days Are Over

One of the world's largest investors in mining stocks, BlackRock, has been out and about over the past week issuing warnings to the major resource companies. 

The iron ore price has hit a five-year record low and BlackRock wants to push a message to management - avoid reverting to the high spending expansionary ways and stay focused on cutting costs and rewarding shareholders.

Evy Hambro, whose team manages more than $20 billion across multiple funds for BlackRock, doesn't seem to explicitly mention whether he includes big iron ore producers chasing increased production among the list of management's bad habits - or whether he thinks the likes of BHP and Rio are ultimately shooting themselves in the foot, given that massively increased supply is a significant factor on the weakening price of the metal.

There is plenty of unconfirmed talk that this is the message that BlackRock has conveyed to the likes of BHP Billiton (in which it is the largest shareholder) and Rio Tinto.

One of the larger culprits in a supply-flooding sense is Fortescue which, percentage wise, has grown much faster than its larger competitors. However the genesis of its expansion plans dates back many years and its target production level has now been reached. 

Fortescue's shareholders are unlikely to see any further volume expansion beyond sweating the existing assets a bit harder.

The ripple effect of the continuing fall of the iron ore price is an issue that is now becoming mainstream. It has major ramifications for the country's exports and governments' tax revenue and thus the broader economy.

To date the large mining companies in Australia have been able to offset last year's lower commodity prices for iron ore and coal by undertaking major cost cutting drives and efficiency initiatives.

But if prices continue to fall and much of the low hanging fruit has been harvested, revenues and profits will be under pressure.

While we can't blame everything on oversupply, given there are seasonal demand factors from the Chinese customers that come into play - the latest of which is that country's weak property market - the fact remains that the Australian producers in particular have been pumping out enormous volumes of iron ore into the seaborn market.

The immediate focus for the Australian iron ore industry has been the health of the smaller mining companies with cash costs close or in excess of the current iron ore prices. How much longer can they last and is this the start of a wave of consolidation?

Western Desert Resources, a company unknown to most, became the canary in the coal mine last week when it had receivers appointed to it. It was the iron ore plaything of hotel billionaire Bruce Mathieson, and had plenty of high-profile directors on the board - with loads of experience across business. Sadly not much in mining.

How the industry shakes out from here depends on which of the smaller players are attractive to those looking for a cheap entry and the agenda of the buyers.

There may be some consolidation between the smaller players - and how this pans out depends on which have cash. BC Iron recently made a $250 million bid for Kerry Stokes' iron ore play, Iron Ore Holdings.

Earlier in the year the Chinese group Baosteel moved into the market in a joint bid with rail infrastructure group, Aurizon for Aquila Resources.

New York-based financier Edward Sugar - a man who helped Fortescue find finance in its early days and who was in Australia last week - suggested there were billions of dollars waiting in the wings looking for resources projects.

He says that private equity players that have traditionally not stepped into the mineral resources space are now assessing whether there are opportunities stemming from the fallout from the financially wounded or the asset sales from the bigger mining stocks that are looking to focus their core portfolios. BHP Billition and Rio are clear examples.

The interest from these private equity groups and other funds set up to invest in mining assets generally - like that formed up by former Xstrata boss Mick Davis - are scouring Australia, the UK and Canada in particular.

UBS' Glyn Lawcock has just released a useful update on the price iron ore (62 per cent Fe which is the one traditionally used) needs to be for companies to hit cash break-even.

For Rio (best in show) it is US$45, BHP needs an iron ore price of US$50 and Fortescue needs a price of US$74. The first two are looking pretty comfortable at this price and FMG will hope to further reduce its costs in order to make a decent return at current price levels.

But the next layer down the smaller iron ore producers hit break even above where the iron ore price is today. The exception in Mount Gibson and BC Iron which have a bit of additional head room.

These producers can not afford to ride out a protracted period of weak prices. 

And there is enormous disparity among those in the industry, the investment banks commodities experts and even the Australian state and federal treasuries about the outlook.

Lawcock for example thinks the price might pick up a bit in November and December (as it usually does).

But not even the most optimistic are suggesting that the days of super profits from this industry are set to return. It's a business that can generate good returns if costs are low but the days  of justifying the massive capital costs of building rail and port infrastructure from scratch appear to be a thing of the past.

House Price Boom Must End, Says David Gonski

ANZ chairman David Gonski has warned Australia's booming housing prices cannot go on forever and the market will eventually experience a correction.

The former Future Fund chairman said ANZ and all the big banks were "very aware of history" when it came to financial lending in the residential mortgage market.

"There will come a time when there will be a correction," he told the Australian British Chamber of Commerce.

"The fact is, anyone who believes prices always go up is, I think, a fool."

Mr Gonski's comments come as the housing market heats up as spring approaches. Capital city markets had their strongest winter since before the lead up to the financial crisis, according to figures released on Monday by RP Data.

Sydney and Melbourne house prices lifted 5 per cent and 6.4 per cent respectively over the three months to the end of August. The surge represents year-on-year growth of more than 16 per cent in Sydney and almost 12 per cent in Melbourne.

Brisbane, which was one of the weaker-performing cities, recorded a 1.3 per cent property value increase in the three months to the end of August.

The Reserve Bank warned in its submission to the Financial System Inquiry that moves to boost competition in the home loan sector could increase risk in the financial system.

Regional banks, credit unions and building societies have urged the federal government to change regulations that give the big banks a significant cost advantage when making home loans.

Mr Gonski also backed ANZ's Asian strategy, questioning why some in the market consider ANZ to be "riskier" than its peers because it is in Asia.

"I believe it's quite odd, I have to say, that we are regarded as a riskier investment because we have investments outside Australia.

"I could very well argue that a good investor has some money in Australia and some money overseas. That's exactly what the ANZ has done."