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A Forgotten Investment Worth Considering: Exchange-Traded Bonds – Wall Street Journal

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 on


A long-term senior bond from eBay is listed on the New York Stock Exchange.


Photo:

Beck Diefenbach/REUTERS

With most Treasurys yielding under 2% and savings accounts yielding even less, individual investors are hard-pressed to figure out what to do with money they don’t want exposed to material market risk.

One viable alternative is bonds that trade on stock exchanges, known as exchange-traded bonds.

About $19 billion of these securities trade mostly on the New York Stock Exchange, with many investment-grade offerings generally yielding between 5% and 6%.

While tiny compared with the traditional $9.3 trillion corporate-bond market, exchange-traded bonds generally offer more transparency than traditional debt offerings. That’s because investors who buy them have the same ease of access to bid and ask information, current yield and limit orders they enjoy when buying and selling stocks, says

Kevin Conery,

fixed-income trading desk analyst at Piper Jaffrey.

Exchange-traded bonds also have other features that individual investors might find attractive.

These securities are issued in $25 bonds, compared with $1,000 for traditional corporate bonds. They pay interest on a quarterly basis versus corporate issues that pay semiannually. And because issuers can typically call exchange-traded bonds five years after their initial offering at par and any point thereafter, the yields are often higher than traditional corporate bonds issued by the same company.

Companies are willing to offer higher yields on exchange-traded bonds because the five-year call features gives them more flexibility to refinance debt if rates fall or eliminate it altogether if the money is no longer needed—something that $1,000 corporates can only do closer to maturity, if at all.

That five-year call feature also can reduce the overall volatility of these bonds (as long as they aren’t suffering from credit issues), especially after the call date has passed. The reason: Prices tend to trade close to par within a year or two of the call and anytime thereafter.

Consider the long-term senior bond of internet-auction giant

eBay Inc.,

which is listed on the NYSE under the symbol EBAYL. This investment-grade offering currently yields 5.59% and is trading at $27.

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Hidden Bonds

Select exchange-traded bond issues

AT&T 5.625% Global Notes | TBC

Aegon 5.10% Subordinated Notes | AEFC

Due: 12/15/2049

Due: 8/1/2067

Initial call date: 12/15/2024

Initial call date: 8/1/2023

S&P credit rating: BBB

S&P credit rating: BBB

Yield to initial call date*: 4.62%

Yield to initial call date*: 3.22%

Price

Yield

Price

Yield

6.0

%

$28

7.0

%

$28

$26.16

27

27

4.85%

5.5

6.5

26

26

5.0

25

6.0

25

$27.66

24

24

5.12%

4.5

5.5

23

23

4.0

22

5.0

22

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

eBay 6.00% Notes | EBAYL

Assured Guaranty Municipal Holding 6.875% | AGO-B

Due: 2/1/2056

Due: 12/15/2101

Initial call date: 3/1/2021

Initial call date: 12/19/2006

S&P credit rating: BBB+

S&P credit rating: A

Yield to initial call date*: 1.81%

Yield to initial call date*: -5.52%

Price

Yield

Price

Yield

$28

7.0

%

7.0

%

$28

6.41%

27

27

6.5

6.5

26

26

5.59%

$27.08

25

6.0

6.0

25

$27.00

24

24

5.5

5.5

23

23

22

5.0

5.0

22

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

AT&T 5.625% Global Notes | TBC

Aegon 5.10% Subordinated Notes | AEFC

Due: 8/1/2067

Due: 12/15/2049

Initial call date: 8/1/2023

Initial call date: 12/15/2024

S&P credit rating: BBB

S&P credit rating: BBB

Yield to initial call date*: 3.22%

Yield to initial call date*: 4.62%

Price

Yield

Price

Yield

$28

7.0

%

6.0

%

$28

$26.16

27

27

4.85%

6.5

5.5

26

26

25

6.0

5.0

25

5.12%

24

24

5.5

4.5

$27.66

23

23

22

5.0

4.0

22

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

Assured Guaranty Municipal Holding 6.875% | AGO-B

eBay 6.00% Notes | EBAYL

Due: 2/1/2056

Due: 12/15/2101

Initial call date: 3/1/2021

Initial call date: 12/19/2006

S&P credit rating: BBB+

S&P credit rating: A

Yield to initial call date*: 1.81%

Yield to initial call date*: -5.52%

Price

Yield

Price

Yield

$28

7.0

%

7.0

%

$28

6.41%

27

27

6.5

6.5

26

26

5.59%

25

6.0

6.0

25

$27.08

24

24

5.5

5.5

$27.00

23

23

22

5.0

5.0

22

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

AT&T 5.625% Global Notes | TBC

Aegon 5.10% Subordinated Notes | AEFC

Due: 12/15/2049

Due: 8/1/2067

Initial call date: 12/15/2024

Initial call date: 8/1/2023

S&P credit rating: BBB

S&P credit rating: BBB

Yield to initial call date*: 4.62%

Yield to initial call date*: 3.22%

Price

Yield

Price

Yield

6.0

%

$28

$28

7.0

%

$26.16

27

27

4.85%

5.5

6.5

26

26

5.0

25

25

6.0

5.12%

24

24

4.5

5.5

$27.66

23

23

4.0

22

22

5.0

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

eBay 6.00% Notes | EBAYL

Assured Guaranty Municipal Holding 6.875% | AGO-B

Due: 2/1/2056

Due: 12/15/2101

Initial call date: 3/1/2021

Initial call date: 12/19/2006

S&P credit rating: BBB+

S&P credit rating: A

Yield to initial call date*: 1.81%

Yield to initial call date*: -5.52%

Price

Yield

Price

Yield

7.0

%

$28

$28

7.0

%

6.41%

27

27

6.5

6.5

26

26

5.59%

6.0

25

25

6.0

$27.08

$27.00

24

24

5.5

5.5

23

23

5.0

22

22

5.0

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

Aegon 5.10% Subordinated Notes | AEFC

Due: 12/15/2049

Initial call date: 12/15/2024

S&P credit rating: BBB

Yield to initial call date*: 4.62%

Price

Yield

6.0

$28

%

$26.16

27

4.85%

5.5

26

5.0

25

24

4.5

23

4.0

22

2018

’19

’20

2018

’19

’20

AT&T 5.625% Global Notes | TBC

Due: 8/1/2067

Initial call date: 8/1/2023

S&P credit rating: BBB

Yield to initial call date*: 3.22%

Price

Yield

$28

7.0

%

27

6.5

26

25

6.0

5.12%

24

5.5

$27.66

23

22

5.0

2018

’19

’20

2018

’19

’20

Assured Guaranty Municipal Holding 6.875% | AGO-B

Due: 12/15/2101

Initial call date: 12/19/2006

S&P credit rating: A

Yield to initial call date*: -5.52%

Price

Yield

$28

7.0

%

6.41%

27

6.5

26

25

6.0

$27.08

24

5.5

23

22

5.0

2018

’19

’20

2018

’19

’20

eBay 6.00% Notes | EBAYL

Due: 2/1/2056

Initial call date: 3/1/2021

S&P credit rating: BBB+

Yield to initial call date*: 1.81%

Price

Yield

7.0

%

$28

27

6.5

26

5.59%

6.0

25

24

5.5

$27.00

23

5.0

22

2018

’19

’20

2018

’19

’20

*Yield to Call is the annualized rate of return based on a call happening upon the first call date. For bonds that have already passed that date, the figure is a net yield based on an immediate call, which can occur within three months or less.    NR = not rated

Sources: quantumonline.com; Bloomberg; FactSet

By comparison, a traditional 4% coupon bond from eBay that matures in 2042 trades at 99.54 (or $995.40 per bond) and yields 4.14%. And while individuals can make any size purchase of exchange-traded bonds, there is a minimum online bid of 10 corporate bonds, or $9,954.

With many online major brokerages having eliminated trading fees, exchange-traded bonds can be bought and sold without cost. However, because these bonds are thinly traded, investors need to use limit orders to ensure efficient pricing.

Some caveats

Barry McAlinden,

a fixed-income strategist at

UBS

Global Wealth Management, cautions investors not to mistake the ease of buying exchange-traded bonds with reduced need for due diligence.

“While their returns and ostensible safety can be enticing,” says Mr. McAlinden, “there are many variables that need to be considered before investing and special caveats that may come into play during difficult times.”

Among the things investors need to consider:

Bond interest is taxed as ordinary income. For higher-income households, this is going to be a much higher rate than the up-to-20% rate at which qualified dividends from common and preferred stock dividends are taxed. As such, tax-deferred retirement accounts might be an ideal place to hold these bonds.

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More Hidden Bonds

More elect exchange-traded bond issues

Medallion Financial 9.00% Notes | MFINL

Entergy Louisiana 5.25% Series First Mortgage Bonds | ELJ

Due: 4/15/2021

Due: 7/1/2052

Initial call date: 4/15/2021

Initial call date: 7/1/2017

S&P credit rating: NR

S&P credit rating: A

Yield to initial call date*: x

Yield to initial call date*: -1.70%

Price

Yield

Price

Yield

6.0

%

$28

10.0

%

$28

$25.99

$26.17

27

4.99%

27

5.5

8.5

26

26

5.0

25

7.0

25

24

24

4.5

5.5

23

23

5.57%

4.0

22

4.0

22

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

Seaspan 7.125% Senior Notes | SSWA

Prudential Financial 5.70%

Junior Subordinated Notes | PRH

Due: 10/30/2027

Due: 3/15/2053

Initial call date: 10/10/2020

Initial call date: 3/15/2018

S&P credit rating: NR

S&P credit rating: BBB+

Yield to initial call date*: 4.08%

Yield to initial call date*: -3.46%

Price

Yield

Price

Yield

$28

9.0

%

$28

7.0

%

$26.07

$25.95

27

27

8.0

6.5

26

26

6.67%

5.51%

25

7.0

25

6.0

24

24

6.0

5.5

23

23

22

5.0

22

5.0

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

Entergy Louisiana 5.25% Series First Mortgage Bonds | ELJ

Medallion Financial 9.00% Notes | MFINL

Due: 7/1/2052

Due: 4/15/2021

Initial call date: 7/1/2017

Initial call date: 4/15/2021

S&P credit rating: A

S&P credit rating: NR

Yield to initial call date*: -1.70%

Yield to initial call date*: x

Price

Yield

Price

Yield

6.0

%

$28

$28

10.0

%

$26.17

$25.99

4.99%

27

27

5.5

8.5

26

26

5.0

25

25

7.0

24

24

4.5

5.5

23

23

5.57%

4.0

22

22

4.0

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

Seaspan 7.125% Senior Notes | SSWA

Prudential Financial 5.70%

Junior Subordinated Notes | PRH

Due: 10/30/2027

Due: 3/15/2053

Initial call date: 10/10/2020

Initial call date: 3/15/2018

S&P credit rating: NR

S&P credit rating: BBB+

Yield to initial call date*: 4.08%

Yield to initial call date*: -3.46%

Price

Yield

Price

Yield

$28

9.0

%

$28

7.0

%

$26.07

$25.95

27

27

8.0

6.5

26

26

6.67%

5.51%

25

7.0

25

6.0

24

24

6.0

5.5

23

23

22

5.0

22

5.0

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

Entergy Louisiana 5.25% Series First Mortgage Bonds | ELJ

Medallion Financial 9.00% Notes | MFINL

Due: 7/1/2052

Due: 4/15/2021

Initial call date: 7/1/2017

Initial call date: 4/15/2021

S&P credit rating: A

S&P credit rating: NR

Yield to initial call date*: -1.70%

Yield to initial call date*: x

Price

Yield

Price

Yield

6.0

%

$28

$28

10.0

%

$25.99

$26.17

4.99%

27

27

5.5

8.5

26

26

5.0

25

25

7.0

24

24

4.5

5.5

23

23

5.57%

4.0

22

22

4.0

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

Seaspan 7.125% Senior Notes | SSWA

Prudential Financial 5.70%

Junior Subordinated Notes | PRH

Due: 10/30/2027

Due: 3/15/2053

Initial call date: 10/10/2020

Initial call date: 3/15/2018

S&P credit rating: NR

S&P credit rating: BBB+

Yield to initial call date*: 4.08%

Yield to initial call date*: -3.46%

Price

Yield

Price

Yield

$28

9.0

%

$28

7.0

%

$26.07

$25.95

27

27

8.0

6.5

26

26

6.67%

5.51%

25

7.0

25

6.0

24

24

6.0

5.5

23

23

22

5.0

22

5.0

2018

’19

’20

2018

’19

’20

2018

’19

’20

2018

’19

’20

Entergy Louisiana 5.25% Series First Mortgage Bonds | ELJ

Due: 7/1/2052

Initial call date: 7/1/2017

S&P credit rating: A

Yield to initial call date*: -1.70%

Price

Yield

6.0

%

$28

$26.17

4.99%

27

5.5

26

5.0

25

24

4.5

23

4.0

22

2018

’19

’20

2018

’19

’20

Medallion Financial 9.00% Notes | MFINL

Due: 4/15/2021

Initial call date: 4/15/2021

S&P credit rating: NR

Yield to initial call date*: x

Price

Yield

$28

10.0

%

$25.99

27

8.5

26

25

7.0

24

5.5

23

5.57%

22

4.0

2018

’19

’20

2018

’19

’20

Prudential Financial 5.70%

Junior Subordinated Notes | PRH

Due: 3/15/2053

Initial call date: 3/15/2018

S&P credit rating: BBB+

Yield to initial call date*: -3.46%

Price

Yield

$28

7.0

%

$25.95

27

6.5

26

5.51%

25

6.0

24

5.5

23

22

5.0

2018

’19

’20

2018

’19

’20

Seaspan 7.125% Senior Notes | SSWA

Due: 10/30/2027

Initial call date: 10/10/2020

S&P credit rating: NR

Yield to initial call date*: 4.08%

Price

Yield

$28

9.0

%

$26.07

27

8.0

26

6.67%

25

7.0

24

6.0

23

22

5.0

2018

’19

’20

2018

’19

’20

*Yield to Call is the annualized rate of return based on a call happening upon the first call date. For bonds that have already passed that date, the figure is a net yield based on an immediate call, which can occur within three months or less.    NR = not rated

Sources: quantumonline.com; Bloomberg; FactSet

Some of these securities are junior subordinated debt, meaning they have a lower-priority claim against assets if a company goes into bankruptcy. While senior bonds can’t miss payments without triggering a default, junior subordinated debt can typically defer interest payments for up to 10 years without doing so. That said, such deferrals are rare. As UBS’s Mr. McAlinden explains, “Such a deferral would wreck any firms’ plans to access capital markets going forward.”

If investors are hoping to benefit from the bond rally—due to additional interest-rate cuts—they shouldn’t count on it. Piper Jaffrey’s Mr. Conery explains such a price rise is only likely if there is at least 3.5 years before the bond is callable. “Prices of bonds with shorter call dates will likely trade closer to their call price,” says Mr. Conery, regardless of minor changes in interest rates.

Maturity rates

Still, the hunt for yield is leading some investors to take on principal risk.

The municipal-bond insurer Assured Guaranty Municipal Holdings (AGO-B) A-rated 6.875% ultralong-term exchange-traded bond is trading at $27.50 and can be called anytime with 20 days’ notice. While the current yield of 6.36% looks enticing, a call at this price would result in a 10% capital loss. To break even, new investors would need the bond to remain outstanding for at least a year and a half.

Because the aforementioned eBay bond trades well above par, its effective annualized yield would be reduced to 1.81% if the company calls the security a year from now—its initial call date. (See table.) Effective yield will rise the longer the bond remains outstanding as investors receive more quarterly payments.

Maturity dates also are important, especially if that date stretches into the next century. The longer the maturity date, the more volatile pricing can be, especially when interest rates move. Pricing is based on yield and credit spreads over equivalently termed Treasurys.

Not all exchange-traded bonds are rated. That could mean the company is confident that its issue will be well subscribed to without a rating, but it also could indicate a company that doesn’t want to pay for a mediocre grade.

Quantumonline.com maintains a free database to help investors get started understanding the exchange-traded bond market.

Mr. Uhlfelder writes about global capital markets from New York. He can be reached at reports@wsj.com.

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Investment regulator imposed $14M in enforcement penalties in latest fiscal year

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TORONTO — Canada’s investment product regulator says it imposed more than $14 million in fines and other financial enforcements in its last fiscal year.

The Canadian Investment Regulatory Organization (CIRO) says the total also includes imposed costs and the forced return of ill-gotten profits.

The regulator says it also ordered suspensions and permanent prohibitions in a significant proportion of proceedings against individuals.

Enforcement efforts included a $2 million fine against Fortrade Canada for recommending a high-risk product to unsophisticated retail clients, and a $1.7 million fine and permanent ban on securities-related business against Paul Walker for a range of misconduct including soliciting more than $1.5 million in investments for an outside business activity.

CIRO was created at the start of 2023 through a combination of the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada.

The new self-regulatory organization says it is focused on harmonizing its regulatory approach to create more consistency and timeliness with enforcement action.

This report by The Canadian Press was first published July 16, 2024.

The Canadian Press

 

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Conditions on Simandou investment now satisfied

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LONDON, July 15, 2024–(BUSINESS WIRE)–All conditions have now been satisfied for Rio Tinto’s investment to develop the Simandou high-grade iron ore deposit in Guinea, including the completion of necessary Guinean and Chinese regulatory approvals. The transaction is expected to complete during the week of 15 July 2024.

Along with the recent approval by the Board of Simfer1, this allows Simfer to invest in and fund its share of co-developed rail and port infrastructure being progressed in partnership with Winning Consortium Simandou2 (WCS), Baowu and the Republic of Guinea.

More than 600 kilometres of new multi-use trans-Guinean railway together with port facilities will allow the export of up to 120 million tonnes per year of mined iron ore by Simfer and WCS from their respective Simandou mining concessions in the southeast of the country3. Together, this will be the largest greenfield integrated mine and infrastructure investment in Africa.

Rio Tinto Executive Committee lead for Guinea and Copper Chief Executive Bold Baatar said: “We thank the Government of Guinea, Chinalco, Baowu and WCS for their partnership in reaching this milestone towards developing the world class Simandou project.

“Simandou will deliver a significant new source of high-grade iron ore that will strengthen Rio Tinto’s portfolio for the decarbonisation of the steel industry, along with trans-Guinean rail and port infrastructure that can make a significant contribution to the country’s economic development.”

Under the terms of the transaction, Simfer will acquire a participation in the WCS project companies constructing rail and port infrastructure, commit to perform a portion of the construction works itself and commit to funding its share of the overall co-developed infrastructure cost, in an aggregate amount of approximately $6.5 billion (Rio Tinto share approximately $3.5 billion)4.

Chalco Iron Ore Holdings Ltd (CIOH) has now paid its share of capital expenditures incurred or required by Simfer to progress critical works up to completion. A first payment of approximately $410 million, for expenditures until the end of 2023, was made on 28 June 2024, and a second payment of approximately $575 million, for 2024 expenditures, was made on 11 July 2024. These amounts settle all expenditures incurred up to date.

The co-developed infrastructure capacity and associated cost will be shared equally between Simfer, which will develop, own and operate a 60 million tonne per year5 mine in blocks 3 and 4 of the Simandou Project, and WCS, which is developing blocks 1 and 2.

Under the co-development arrangement, Simfer and WCS will deliver separate infrastructure scopes to leverage expertise. Simfer will construct the approximately 70 kilometre Simfer spur rail line and a 60 million tonne per year transhipment vessel (TSV) port, while WCS will construct the dual track approximately 536 kilometre main rail line, the approximately 16 kilometre WCS spur rail line and a 60 million tonne per year barge port.

Once complete, all co-developed infrastructure and rolling stock will be transferred to and operated by the Compagnie du Transguinéen (CTG) joint venture, in which Simfer and WCS each hold a 42.5% equity stake and the Guinean State a 15% equity stake6.

First production from the Simfer mine is expected in 2025, ramping up over 30 months to an annualised capacity of 60 million tonnes per year5 (27 million tonnes Rio Tinto share). The mine will initially deliver a single fines product before transitioning to a dual fines product of blast furnace and direct reduction ready ore.

Simfer’s capital funding requirement for the Simandou project as a whole is estimated to be approximately $11.6 billion, of which Rio Tinto’s share is approximately $6.2 billion, broken down as follows.

US dollars in billions (nominal terms) Simfer

capex

  Rio Tinto
share
Mine and TSVs, owned and operated by Simfer
Development of an initial 60Mt/a mine at Simandou South (blocks 3 & 4), to be constructed by Simfer $5.1 $2.7
Co-developed infrastructure, owned and operated by CTG once complete
Simfer scope (funded 100% by Simfer during construction)

Rail: a 70 km rail-spur from Simfer mine to the mainline, including rolling stock
Port: construction of a 60Mt/a TSV port

$3.5 $1.9
WCS scope (funded 34% by Simfer during construction)

Port and rail infrastructure including an approximately 552 km trans-Guinean heavy haul rail system, comprised of a 536 km mainline and a 16 km WCS rail spur

$3.0 $1.6
Total capital expenditure (nominal terms) $11.6 $6.27

Rio Tinto’s share of expected capital investment remaining to be spent from 1 January 2024 is to be $5.7 billion. Rio Tinto’s expected funding requirements for 2024 and 2025 are included in its share of capital investment guidance for this period, with project funding expected to extend beyond this timeframe.

Further details on the Simandou project can be found in the 2023 Investor Seminar presentation at https://www.riotinto.com/en/invest/investor-seminars.

As Chinalco, Baowu, China Rail Construction Corporation and China Harbour Engineering Company are Chinese state-owned entities, and given Chinalco indirectly holds 11.2% of shares in the Rio Tinto Group, they, and WCS, may be considered to be associates of a related party of Rio Tinto for the purpose of the UK Listing Rules. Rio Tinto’s funding commitment pursuant to the infrastructure co-development arrangement (Rio Tinto share $3.5bn) is a smaller related party transaction for the purposes of Listing Rule 11.1.10R and this announcement is, therefore, made in accordance with Listing Rule 11.1.10R(2)(c).

___________________________
1 Approval has been granted by the Board of Simfer Jersey Limited, a joint venture between the Rio Tinto Group (53%) and Chalco Iron Ore Holdings Ltd (CIOH) (47%), a Chinalco-led joint venture of leading Chinese SOEs (Chinalco (75%), Baowu (20%), China Rail Construction Corporation (2.5%) and China Harbour Engineering Company (2.5%)). Simfer Infraco Guinée S.A.U. will deliver Simfer Jersey’s scope of the co-developed rail and port infrastructure, and is, on the date of this notice, a wholly-owned indirect subsidiary of Simfer Jersey Limited, but will be co-owned by the Guinean State (15%) after closing of the co-development arrangements. Simfer S.A. is the holder of the mining concession covering Simandou Blocks 3 & 4, and is owned by the Guinean State (15%) and Simfer Jersey Limited (85%).
2 WCS is the holder of Simandou North Blocks 1 & 2 (with the Government of Guinea holding a 15% interest in the mining vehicle and WCS holding 85%) and associated infrastructure. WCS was originally held by WCS Holdings, a consortium of Singaporean company, Winning International Group (50%) and Weiqiao Aluminium (part of the China Hongqiao Group) (50%). On 19 June 2024, Baowu Resources completed the acquisition of a 49% share of WCS mine and infrastructure projects with WCS Holdings holding the remaining 51%. In the case of the mine, Baowu also has an option to increase to 51% during operations. After Closing, Simfer will hold 34% of the shares in the WCS infrastructure entities during construction with WCS holding the remaining 66%.
3 WCS holds the mining concession for Blocks 1 and 2, while Simfer S.A. holds the mining concession for blocks 3 and 4. Simfer and WCS will independently develop their mines.
4 A true-up mechanism will apply between Simfer and WCS to equalise most of their costs of constructing the co-developed rail and port infrastructure. The figures shown here are pre-equalisation.
5 The estimated annualised capacity of approximately 60 million dry tonnes per annum iron ore for the Simandou life of mine schedule was previously reported in a release to the Australian Securities Exchange dated 6 December 2023 titled “Simandou iron ore project update“. Rio Tinto confirms that all material assumptions underpinning that production target continue to apply and have not materially changed.
6 Ownership of the rail and port infrastructure will transfer from CTG to the Guinean State after a 35 year Operations Period, with Simfer retaining access rights on a non-discriminatory basis and at least equivalent to all Third Party Users.
7 By the end of 2023, Rio Tinto spent $0.5 billion (Rio Tinto share) to progress critical path works. Rio Tinto’s share of expected capital investment remaining to be spent from 1 January 2024 was $5.7 billion.

This announcement is authorised for release to the market by Andy Hodges, Rio Tinto’s Group Company Secretary.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240621382292/en/

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

Media Relations,
United Kingdom
Matthew Klar
M +44 7796 630 637
David Outhwaite
M +44 7787 597 493

Media Relations,
Australia

Matt Chambers
M +61 433 525 739
Jesse Riseborough
M +61 436 653 412
Alyesha Anderson
M +61 434 868 118
Michelle Lee
M +61 458 609 322

Media Relations,
Americas

Simon Letendre
M +1 514 796 4973
Malika Cherry
M +1 418 592 7293
Vanessa Damha
M +1 514 715 2152

Investor Relations,
United Kingdom
David Ovington
M +44 7920 010 978
Laura Brooks
M +44 7826 942 797

Investor Relations,
Australia

Tom Gallop
M +61 439 353 948
Amar Jambaa
M +61 472 865 948

Rio Tinto plc
6 St James’s Square
London SW1Y 4AD
United Kingdom
T +44 20 7781 2000
Registered in England
No. 719885

Rio Tinto Limited
Level 43, 120 Collins Street
Melbourne 3000
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T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404

riotinto.com

Category: Simandou

 

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BlackRock Pulls Ad Featuring Trump Rally Shooter Thomas Matthew Crooks

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A screengrab of Thomas Crooks from the BlackRock ad that aired in 2022.

Thomas Matthew Crooks, the 20-year-old who shot at former president Donald Trump at a rally in Pennsylvania, had briefly appeared in a 2022 advertisement for BlackRock Inc, the world’s largest money manager.

The ad, filmed at the Bethel Park High School in Pennsylvania, featured Crooks and several other unpaid students in the background, said the investment giant in a statement. Crooks graduated from the school in 2022.

BlackRock said it has pulled the ad but the video will be available to authorities. The ad, however, is being widely shared by social media users.

“The assassination attempt on former President Trump is abhorrent. We’re thankful former President Trump wasn’t seriously injured, and thinking about all the innocent bystanders and victims of this awful act, especially the person who was killed,” the company added in its statement.

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BlackRock, whose earnings figures are expected today, has faced scrutiny after shooting incidents since some of its index funds own shares in gunmakers.

Trump Assassination Attempt

Trump survived an assassination attempt on Saturday after a gunman opened fire at him at a rally in Pennsylvania ahead of the Presidential elections. The attack left him with a bloodied face as the former president said the bullet pierced his “upper part of right ear”.

Latest and Breaking News on NDTV

A bystander died in the attack while shielding his family and Crooks – a registered Republican – was shot dead by a Secret Service sniper.

Trump, whose Republican candidature will be finalised today, shared a message of unity after the attack and said Americans must not allow “evil to win”. “It was God alone who prevented the unthinkable from happening,” he said on social media.

Biden, too, appealed to the nation to “lower the political temperature” in a rare Oval Office address. “Politics must never be a literal battlefield, God forbid a killing field,” he said.

The US markets are expecting Trump trades to gain momentum after the attack. It has already been pinning hopes for the return of Republicans, especially after Biden’s poor performance in last month’s debate. Those trades are likely to take deeper hold as the attack sparks a wave of sympathy and support for Trump.

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