| AGK | Gas producers such as Exxon and STO are seeking to raise prices while heavy losses are likely after losing access to prime gas reserves in NSW | SMH |
| AIX | AIX notes press reports today regarding correspondence that it has received, in which AustralianSuper alleges that the proposed sale by AIX of its interests in Perth Airport is in breach of the relevant shareholders’ agreements. AIX considers it has complied with the shareholders’ agreements for Perth Airport and accordingly, intends to proceed with the sale of its interests as described in the Explanatory Booklet dated 7 December 2012 | Company report |
| APA | Has received expressions of interest for its Moomba to Adelaide Pipeline System | AFR |
| ASZ | IT Services provider ASG Group announced its interim financial result for the 6 months ended 31 December 2012, reporting steady revenues and high rates of renewals and recurrent revenues that reflect customer commitment to ASG in a challenging market for IT services. The outcomes for the period highlight the positive impact of the rapidly expanding ‘new world’ computing services contrasted with the worldwide contraction and margin pressure in traditional IT services areas. Revenue of $75.90 million was flat against the $76.04 million reported a year earlier reflecting the net effect of these market forces. ASG continues to experience significant customer loyalty, with recurring revenues of more than 75% and a contract renewal rate of 85% in the last five years. Approximately $40 million in existing contracts (90% of the total) were renewed during the half. The adjusted underlying EBITDA was $12.80 million before the one-off impact of $15.60 million of write-downs, driven by the company’s recent strategic review and realignment of its business development approach and cost structure. After the write-downs ASG reported EBITDA of -$2.79 million, compared with EBITDA of $14.36 million a year ago. As a result, the company will not pay an interim dividend. The recent performance of the IT services sector confirms the strategic direction recognised by the company over the past two years. While recommitting to the overall strategy, ASG is focusing on realignment initiatives across the business that will result in annualised savings of approximately $8.0 million (net $2.1 million realised in FY2013). The company is also implementing a more disciplined and economical approach to competing for contracts, as announced on 14 February. Chief Executive Officer Geoff Lewis said: “The interim result reflects the structural changes we have made to our business and adjustments to our implementation approach as customers increasingly look to us as they adopt ‘new world’ IT systems. | Company report |
| AUT | Aurora Oil & Gas Limited is pleased to announce that a syndicate of banks have approved an increase in the borrowing base available under its existing US$300 million senior secured revolving credit facility from US$150 million to US$275 million | Company report |
| BOQ | BOQ announced commencement of an offer to buyback A$653,000,000 from holders of its Senior Unsecured Floating Notes. Based on the final tabulation provided by UBS AG, Australia Branch, which is acting as Offer Manager for the offer, BOQ will accept A$644,700,000 for purchase of the Notes validly tendered, with settlement scheduled to occur on 6 March 2013 | Company report |
| BTU | Bathurst Resources is pleased to announce it has signed an agreement to acquire all the ordinary shares in New Brighton Collieries Limited from L&M Coal. The principal asset of NBCL is Coal Exploration Permit 40625. The Permit covers 658.3 hectares and is located 5 kilometres from Bathurst’s Takitimu mine in Southland. The permit is prospective for high grade sub-bituminous coal. The aggregate consideration payable by Bathurst for the acquisition is A$13.44 million , which comprises: An initial deposit of A$1.2 million paid on execution of the agreement. A further payment of A$1.64 million on the grant of a Mining Permit. A final payment of A$10.6 million on completion of the acquisition | Company report |
| CGF | Statutory NPAT of $222m compared with Citi’s f/c $239m (Citi was a little ahead of the market) Dividend of 9.5c compared with Citi’s f/c 8c They have downgraded retail net book growth to +8% (previously +10%) No additional share buyback announced Have reiterated FY13 life COE guidance of $440m-$450m | Citi |
| CPU | Computershare Limited has agreed terms for the acquisition of the EMEA-based portion of Morgan Stanley’s Global Stock Plan Services business. The acquisition is expected to complete in May 2013. GSPS EMEA is a leading European based employee share plans provider with revenues of approximately US$22m. The cash consideration is US$48.5 million. The acquisition will be funded by cash and existing debt facilities and is expected to be immediately Management EPS accretive | Company report |
| FMG | FMG expects rising operating costs to be mitigated by an improved credit rating, a sale of infrastructure and a subsequent fall in the cost of debt | AFR |
| GGG | Greenland Minerals released a prefeasibility study on the Kvanefjeld rare earth element – uranium project, located in southern Greenland. The prefeasibility study (PFS) draws upon substantial test work and technical studies, and involved a rigorous flow‐sheet selection process to determine the optimal means of treating Kvanefjeld ores. The PFS outcomes indicate the clear potential for Kvanefjeld to be developed as a long‐life, cost‐competitive producer of rare earth concentrates and uranium oxide. Since releasing the Kvanefjeld PFS, further technical advances were made that serve to improve the study outcomes significantly. A PFS update was released in August 2012 outlining simplifications to the proposed processing circuit that result in a reduction in capital costs, and a 27% increase in the output of rare earth concentrate. The substantial increase in rare earth recovery and output has driven the Company to evaluate a smaller start‐up capacity for Kvanefjeld than the 7.2 Mt capacity evaluated in the PFS. A reduction in the initial rare earth production capacity reduces the market risk brought about by the material improvements in rare earth recovery, and also serves to significantly reduce the capital costs of project development | Company report |
| GRR | Revenues from mining operations of $331.3 million. Net profit after tax of $35.9 million. Disciplined cash management has preserved balance sheet strength. Disciplined operating cost review processes. Rigid capital expenditure approval processes. Net cash inflows from operating activities of $131.9 million. Cash and term deposits of $174.9 million. No net debt and reduced gearing levels with borrowings of $22.9 million. Paid $46.2 million of dividends to shareholders during 2012 with a further $11.6 million to be paid in April 2013. Final dividend of 1.0 cents per share (unfranked) declared in February 2013. Continues to provide an attractive dividend yield to shareholders at current share prices. Revised off-take agreement with Shagang providing flexibility to broaden customer base and take advantage of improving market conditions. Significant increase in 62% Fe iron ore prices since market lows in September 2012. Continue to receive a quality premium for iron ore pellets | Company report |
| GXY | Galaxy announces that it has settled the second tranche of a A$20 million (before costs) funding facility with Deutsche Bank following the recommencement of operations at the Jiangsu Lithium Carbonate Plant (“Jiangsu Plant”) and subsequent site inspection by Deutsche Bank – a condition of the Tranche 2 funding. Galaxy confirms it has received A$10 million (gross) under the two-tranche financing arrangement with Deutsche Bank. The first A$10 million (gross) tranche (“Tranche 1”) settled on 17 December 2012. | Company report |
| HGG | Underlying profit before tax £146.5m. Operating margin at 36.0%. Compensation ratio at 41.1%. Strong investment performance over three years; 69% of funds meet or exceed benchmarks. AUM increased to £65.6bn at 31 December 2012. Diluted underlying EPS at 11.7p. Board recommending final dividend of 5.05 pence per share; 2% increase in total dividend | Company report |
| HGO | 4th Quarter Production Report period ended 31st January 2013. HGO has reported a poor end to its financial year on the production side. We see this as a clearing-of-the-decks exercise with new management at the CEO and mine-site level. Low grade ore that had been stockpiled on the ROM pad for almost 12 months has been processed. C1 costs ballooned from US$2.01/lb copper in the Oct’12 quarter to US$2.74/lb for the Jan’13 period as added waste was mined to open up the main Kavanagh pit for higher throughputs going forward. The grade of ore on the ROM pad was basically un-economic (<0.75% Cu) at 0.62% Cu. This exercise will now liberate the company’s balance sheet and working capital requirements prior to the introduction of a new crusher (cost A$3.1m) that will increase mine capacity from 2.4Mtpa to 2.8Mtpa. Total costs of production including royalties and D&A fell in the quarter to US$3.10/lb (US$3.24/lb Cu in Oct’12 quarter) because ore treated from the ROM pad had already been costed previously. The opening up of a high grade pit (Emily Star) with grades >0.90% Cu together with consistent mining from the main area pit (Kavanagh) will give HGO a clear operating period in 2013 and beyond. The drilling programme undertaken during 2012 has yield 2-3 additional discoveries and extensions of existing orebodies. Management are confident that an extension of the life-of-mine will occur from current levels of 6.5 years to +10 years. A new resource estimate has as yet not been released. This will provide confidence to new site management to plan 2-3 years ahead in their production scheduling | Company report |
| LEI | Leighton has secured a design and build contract for a new hospital in Tin Shui Wai, Hong Kong. The contract is valued at approximately A$370 million and will be delivered as a joint venture between Leighton Contractors (Asia) Limited and Able Engineering Company Limited | Company report |
| LLC | Lend Lease confirms it has signed an agreement to sell its aged care business for A$270 million to Australian Aged Care Partners, which is controlled by funds managed or advised by Archer Capital. Lend Lease will receive cash proceeds of A$200 million in addition to a promissory note of A$70 million. The transaction is expected to be complete by the end of March 2013 | Company report |
| MBN | The Group recorded a net loss for the year ended 31 December 2012 of US$452.875 million, representing (US$0.6231) per share, in comparison to a net loss for the year ended 31 December 2011 of US$50.761 million representing a loss of (US$0.1032) per share, mainly as a result of a US$380.000 million impairment charge on its assets (refer section 2.4.3 of this report). Sales generated during the current period comprised 19,367 tonnes of nickel in concentrate at an average realised nickel price of US$7.46/lb excluding realised hedges, and 6,253 tonnes of copper in concentrate at an average copper price of US$3.43/lb excluding realised hedges. This resulted in gross nickel revenue of US$300.550 million, copper revenue of US$34.036 million, cobalt revenue of US$4.108 million and platinum and other metals revenue of US$4.704 million. Treatment, refining and transport charges associated with the sale of concentrate totalled US$69.980 million. Cost of sales for the year of US$280.175 million comprised direct costs of US$200.432 million, royalties of US$14.978 million and indirect costs of US$64.765 million. Direct costs were driven by expenditure on mining (US$112.114 million), processing & plant (US$61.166 million), administration (US$20.019 million), and stockpile movements (US$7.133 million) associated with the timing of production and sales. Royalties of US$14.978 million reflect the leasing of mining rights to nickel sulphide ore, federal royalties and royalty agreements with former landowners. Depreciation and amortization (indirect costs) of US$63.325 million reflect the Group’s use of its assets based on a combination of a unit of production calculation and the useful life of equipment. | Company report |
| MCE | The Company has recorded total revenue of $81.6 million, down by 2.3 per cent from the corresponding period. Revenue was adversely impacted by: Lower than anticipated production output arising from the reconfiguration to the plant shift roster from three shifts to two shifts to improve flexibility and responsiveness to market demand. Short term delays resulting in lower than expected sales revenue for well construction products. Lower than anticipated sales revenue from SURF ancillary equipment, and weaker order conversions for riser buoyancy products which are expected to strengthen in 2H 2013. A continuing strong Australian dollar. Competitive pricing pressure Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) improved to $6.4 million. | Company report |
| MIN | Mineral Resources has signed a mine gate purchase agreement for iron ore from Iron Ore Holdings Iron Valley tenement, located in the Pilbara region of WA. MIN has agreed to develop the mine on IOH’s behalf for operations to commence within 6 months of final mining approvals being granted; IOH is responsible for securing approval for the mining proposal and other statutory items and MIN having responsibility for operating approvals; Commencement of the construction phase is expected to be early in Q3 2013; | Company report |
| MML | Revenues of US$52.4 million compared to US$40.9 million for the corresponding period in the previous year, an increase of 28% due to marginal increase in both gold production and a higher average price received on sale of gold. Medusa is an un-hedged gold producer and received an average gold price of US$1,676 per ounce from the sale of 43,492 ounces of gold for the half-year to December 2012 (corresponding period to December 2011: 25,446 ounces at US$1,655 per ounce); Earnings before interest, tax, depreciation and amortisation (“EBITDA”) of US$35.3 million, (US$28.4 million in the prior corresponding period); an increase of 24%. Earnings per share (“EPS”) of US$0.152 on a weighted average basis is based on NPAT of US$28.6 million (six months to December 2011: EPS of US$0.127 based on NPAT of US$24.0 million);an increase of 19%. The Company remains debt free and had total cash, cash equivalent in gold on metal account and bullion on hand of US$15.8 million at 31 December 2012 (corresponding period to 31 December 2011: US$80.2 million) | Company report |
| MTS | Metcash will re-evaluate the strategies employed by outgoing chief executive Andrew Reitzer to solidify the company’s opportunities for growth. | AFR |
| NST | JORC Resources at Ashburton Gold Project in WA significantly increase 66% to 1.7Moz, lifting Northern Star’s group resources to more than 2Moz. Expanded inventory strengthens Northern Star’s strategy to establish a stand-alone 100,000ozpa operation at Ashburton. New Resource includes 647,000oz of oxide ore, underpinning plans to develop Ashburton with low costs and strong cashflow. Maiden sulphide reserve for Ashburton scheduled for second half of this year. Economic and technical studies well advanced | Company report |
| OMH | 2012 revenue of A$408 million, representing a 5% increase from 2011. Excluding non-cash impairment charges and other non-cash items, an underlying EBITDA of A$21.9 million and corresponding EBIT of A$8.0 million were achieved by the operating divisions of the Group. Non-cash impairment charge of A$53.0 million associated with the re-valuation of the Company’s investments in NFE and SRR. Cash reserves of A$89 million (including cash collateral of A$15 million) at 31 December 2012. Operating cash-flows of A$61 million generated in 2012 Group inventories declined from A$158.1 million in 2011 to A$119.3 million in 2012 Basic loss of A$0.10 per share (2011: basic loss of A$0.02 per share). Net tangible asset backing of A$0.48 per share (2011: A$0.51 per share) | Company report |
| PAN | Net revenue of $94.8 million, reflecting the weaker A$ nickel price and lower nickel deliveries. Positive cash flow from operating activities of $16 million before tax and after corporate costs and greenfield exploration. Underlying Nickel Division EBITDA of $13.5 million, reflecting lower production and flat operating costs. Net loss after tax of $13.0 million, due to lower A$ sales revenue and higher non-cash depreciation and amortisation charges. Strong Balance Sheet with cash, term deposits and current receivables totaling $66.9 million. Interim fully franked dividend of 1 cent per share declared. | Company report |
| PEM | PEM Earnings before tax of $39.27 million ($52.96 million for the corresponding period last year). A net profit after tax of $27.72 million ($38.75 million for the corresponding period last year), which includes a negative sales adjustment of $6.3 million to 2011 shipments from Cerro de Maimón as a result of unfavourable final assays has impacted on the 2012 full year results). Once this adjustment is excluded the 2012 and 2011 results are in-line. Free cash on hand of $37.63 million (up from $36.37 million for the corresponding period last year). Net cashflow from operations of $65.19 million for the period (down from $67.44 million for the corresponding period last year). Sales revenue (net of treatment & refining charges) of $353.79 million (down from $360.19 million for the corresponding period last year). Earnings per share of 3.61 cents. Cerro de Maimón production for the full year of 11,505 t of contained copper, 13,924 oz of gold and 346,794 oz of silver, ahead of, or in-line with, annual guidance of 10,500-11,000 t copper, 14,000- 15,000 oz gold and 320,000-400,000 oz silver at a C1 cash cost of US$0.62/lb of payable copper. Average price received for copper during the period was US$3.60/lb resulting in the Cerro de Maimón generating a strong cash operating margin of US$2.98/lb of payable copper (average price received for copper was $3.99 for a cash operating margin of $3.60/lb for the corresponding period last year). Combined zinc and lead production at Broken Hill of 130,953 tonnes (contained) exceeding both the January 2012 annual guidance and the September revised annual guidance of 110kt-120kt and 125kt- 130kt of combined zinc and lead respectively, produced at an average notional* C1 cash operating cost of US$0.62/lb of payable zinc – within market guidance of US$0.60 – US$0.70/lb of payable zinc. Average price received for zinc during the period was US$0.88/lb resulting in the Broken Hill Operations generating a cash operating margin of US$0.26/lb of payable zinc (average price received for zinc of US$0.99/lb at a cash operating margin of US$0.43/lb for the corresponding period last year). | Company report |
| PPT | Perpetual Limited announced an Underlying Profit After Tax (UPAT) for the six months to 31 December 2012 (1H13) of $35.1 million, up 2% on 1H12, and 13% on 2H12. The improvement in UPAT on the prior periods reflects the benefits of continued execution against the Transformation 2015 program. Statutory Net Profit After Tax (NPAT) was $27.3 million. The result includes a $6.0 million after tax restructuring cost and the foreshadowed $5.2 million non-cash after tax foreign currency translation cost related to the closure of the Dublin operations in FY12 | Company report |
| QAN | Has left the door open to the possibility to expanding the alliance with Emirates | SMH |
| QAN | Qantas Group passenger numbers for January 2013 were up 2.9 per cent from the previous year. RPKs decreased by 2.4 per cent and ASKs decreased by 2.3 per cent, resulting in a revenue seat factor of 82.1 per cent, which was 0.1 percentage points lower than the previous year | Company report |
| RFE | 3P reserves increase by 49% from 6.5mmboe to 9.6mmboe in just six months Assumed average liquids content of around 77% on 3P basis consistent with actual results to date | Company report |
| SAR | Gold production up 6% to 62,456 ozs (2011: 59,091 ozs) Revenue up 3% to $97.7 million (2011: $94.4 million) EBITDA (excluding significant items2) $ 29.9 million (2011: $42.3 million) Net cash flow from operations up 14% to $30.8 million (2011: $27.0 million) Net Loss after Tax of $22.9 million (2011: Profit $9.6 million) | Company report |
| SDL | Sundance Resources advises that it has received A$5 million from Hanlong (Africa) Mining Investment Limited (“Hanlong”) representing the Tranche 1 funding under the Convertible Note Facility. | Company report |
| SDM | Leading resource sector services company Sedgman announced it had secured a contract to Engineer, Procure and Construct (EPC) a new processing plant for La Mancha Resources’ (La Mancha) Mungari Gold Project located 20 km west of Kalgoorlie in WA. Sedgman’s EPC work is approximately AUD$90 million, included in a total La Mancha project value of AUD$110 million | Company report |
| SYD | Lobbying for gov’t to relax the cap on hourly aircraft movements to allow more rapid recovery from disruptions | SMH |
| SYD | For the FY to December 2012 SYD reported EBITDA growth of 7.4% on 3.6% total passenger growth and 6.9% revenue growth. SYD has declared a final distribution of 10 cps for FY distribution of 21 cps, as per company guidance. SYD has also provided an update on the ATO dispute relating to the internal redeemable preference shares. SYD should be seen as a medium growth yielding stock with growth options based on its own capital expenditure, passenger number increase, ongoing strength in the air travel sector and profit (hence distribution) leverage to revenue growth based on the high fixed cost base (principally debt servicing). Longer term growth is expected when transport constraints are removed around Sydney Airport. No specific company guidance for 2013 was provided at this stage. SYD did comment “we remain committed to delivering EBITDA and cash flow growth significantly above passenger growth.” The operational everage of SYD is reflected in the group’s 7.6% revenue increase on 3.6% passenger growth. SYD reported 7.4% EBITDA growth. With debt being the major cost (at $460M per year) and relatively fixed based on the debt maturity profile, pre-tax profits are leveraged to revenue growth. Importantly distributions are now fully covered, and so we expect distribution growth to reflect EBIT growth. The second Sydney airport will remain topical. Shaw expects Badgery’s Creek to be approved by the Federal Government. However this will not be within the next few years, and will depend on political cycles. SYD has the first right of refusal to operate any airport within 100 km of the Sydney CBD. The ATO claim regarding an internal preference share (RPS) structure remains indeterminate. SYD has estimated it may cost the group $79M based on the current ATO claim. Shaw has ignored this claim in our valuation until further details are released. | Shaw |
| TWE | TWE first half EBITS $73.4 million, in line with guidance. EBITS impacted by higher COGS, up $2.24 per case. Cost of doing business down 7.7 percent. Increased US non-current inventory, up 50 percent driven by a strong 2012 Californian vintage. Increased investment of $107.0 million in the first half, including premium vineyards and winery assets. EPS (before material items & SGARA) 7.0 cents per share, down 10.3 percent. Interim dividend 6 cents per share; franked 50 percent. | Company report |
| UGL | UGL will reduce the company’s staffing level by 700 positions in order to remain competitive | AFR |
| WDC | WDC told investors that the global shopping centre owner was negotiating up to a 5% reduction in rents for new shopping centre leases as a result of the weaker market environment | SMH |
| WES | WES has admitted that employees at supermarket giant Coles have been playing hardball with suppliers in order drive prices down | The Australian |
| WOW | Net Profit After Tax From Continuing Operations Before Significant Items up 5.5% to $1,247.2 million Net Profit After Tax up 19.4% to $1,154.8 million. Sales from continuing operations of $30.0 billion, up 4.8%. Trading EBIT from continuing operations up 7.0% before significant items, Central Overheads and the investment in Home Improvement. EBIT from continuing operations before significant items1 up 6.1% to $1,934.7 million (total EBIT up 19.1%). Net profit after tax from continuing operations before significant items up 5.5% and 4.2% increase in EPS from continuing operations before significant items to 101.1 cents19.4% increase in net profit after tax and 17.9% increase in EPS to 93.6 cents.Over $2.0 billion returned to shareholders via dividends and the in-specie distribution | Company report |
| WOW | Considering buying a collapsed Barossa Valley winery to increase market | AFR |
| WTF | WTF has reported a below guidance result for 1H13. An Average (at best) result. Sales down 1%, EBITDA and NPAT down 6%, and 5% respectively below guidance, despite an accounting change. NPAT would have been down est 10% otherwise inline with Operating cash flow, which was down 9.7% to $43.3mn. Guidance at the AGM for 1H13 to be “in the vicinity” of 1H12 ($28.8mn) did not materialise in our view with WTF’s 1H13 NPAT 5% lower. The miss suggests 2Q13 was weaker than expected and that the run rate being carried into 2H13 is negative. The result reflected ongoing flat sales (negative organic growth, room nights -3.6%) due to weak demand and (we believe) increased competition. Higher costs were also a factor impacting earnings. New CEO’s strategy is yet to be stated: WTF’s new CEO, Scott Blume, is yet to announce WTF’s strategy going forward, although he has hinted at investing in people, sites and systems. We expect WTF will need to invest to upgrade systems in order to remain relevant in what we see as an increasingly competitive, lower growth environment. Positives. From a low base flight TTV has grown by 11%. Inventory of accommodation continues to increase strongly, Australia (+16%) and Asia (+38%), however it is not driving room night growth. WTF’s net cash position and the prospects of increased commission structure are responsible for it trading on a 19% premium to the XSI (14x FY14) and we believe future commission increases may be hard to achieve. In addition we see that since 2010 the group has struggled to grow Total Transaction Value (TTV), which suggests the structural change to online booking has largely run its course. The main upside risk to our rating are: 1) a cyclical recovery which does not look imminent, 2) further changes to the revenue model and 3) possible acquisition | Shaw |
| WTP | Watpac has finalised contractual negotiations with Pluton Resources (PLV) to mine iron ore at Cockatoo Island in Western Australia. The contract value is $93 million. | Company report |
Filed under: Company News
