Dahlman Rose Discusses Miners Earnings (FCX, NUE, STLD, SCCO, BHP)

Dahlman Rose & Co. is out with a research report on miners' earnings, and discusses Freeport McMoran FCX, Nucor NUE, Steel Dynamics STLD, Southern Copper SCCO and BHP Billiton BHP in the report. In a note to clients, Dahlman writes, "Freeport McMoRan, Nucor, Steel Dynamics and Southern Copper released quarterly earnings results and BHP Billiton released its quarterly production report Nucor and Steel Dynamics handily beat our and the consensus earnings estimates as both companies benefited from high steel prices and improving demand and were able to partially offset higher raw material costs through their metals recycling businesses. Increased copper, gold and molybdenum production due to higher than anticipated ore grades at Grasberg and stronger demand in the molybdenum sector led to a substantial quarterly earnings beat for Freeport McMoRan. Southern Copper's earnings fell below our and the consensus estimates due to declining ore grades across a majority of the company's mines and a large increase in operating costs. In its production report, BHP Billiton showed strong iron ore production despite adverse weather conditions and planned maintenance work, but indicated that flooding in Queensland will affect met coal production for the remainder of the 2011 calendar year and that Gulf of Mexico permitting delays will lead to lower petroleum product production (ex-Fayetteville shale acquisition) in 2012."