| ASX | The former secretary of the Federal Treasury, Ken Henry, has been appointed as the next board member of ASX | AFR |
| BHP | Iron Ore production for the Dec’12 quarter was 6% higher than the Sep’12 quarter at 42.2Mt. Production for the Dec’12 half increased 2% to 82.0Mt over the Dec’11 Half. Petroleum production for the Dec’12 quarter was 2% lower compared to Sep’12 quarter at 59.9MMboe. This was due to a 6% decline in the production of natural gas from Bass Straight reflecting the seasonal reduction in demand following a strong Sep’12 quarter. Copper Production for the Dec’12 quarter was 8% higher than the Sep’12 quarter at 295,200t. Production for the Dec’12 half increased 14% to 569,100t over the Dec’11 half as copper in concentrate production at Escondida (Chile) increased by 70% over the same period. Production at Escondida benefited from the transition to higher grade ore feed and the successful completion of large scale maintenance programs that have increased concentrator throughput. The average copper grade mined during the Dec’12 quarter increased to 1.39%. Total Escondida copper production is on track to increase by 20% in FY’13. Production for the Dec’12 quarter increased 5% over the Sep’12 quarter to a record 1.2Mt while production for the Dec’12 half increased 17% to 2.4Mt. Strong performance at Worsley (Australia) following the successful ramp up of new installed capacity led to the plant operating at 95% of design capacity during the period. Production for the quarter increased 10% over the Sep’12 quarter to 297,000t while production for the Dec’12 half decreased 10% to 567,000t. The increase in quarterly production was attributable to Hillside (South Africa) returning to full technical capacity ahead of schedule. Production for the quarter decreased 6% over the Sep’12 quarter to 34,700t while production for the Dec’12 half decreased 2% to 71,700t. The reduction in production was due to planned maintenance at the Nickel West Kalgoorlie smelter and Kwinana refinery (both Australia), which was completed during the period. Metallurgical Coal Production for the quarter decreased 1% over the Sep’12 quarter to 8.9Mt while production for the Dec’12 half was flat at 17.8Mt. Queensland Coal (Australia) sales increased by 30% from the Sep’12 quarter. However, the strong recovery in production that followed the conclusion of the BMA Enterprise Agreement was largely offset by planned wash plant outages at South Walker Creek and Goonyella, and the closure of high cost capacity at the Gregory mine which ceased production on 10 October 2012. At the end of the Dec’12 quarter, Queensland Coal production was approaching full supply chain capacity and clubbed with broader economies of scale and the closure of high cost capacity is expected to deliver a substantial reduction in unit costs in the second half of FY’13. Illawarra Coal achieved record sales during the Dec’12 half year as a longwall move at the Dendrobium mine commenced at the end of December 2012. Energy coal Production for the quarter decreased 7% over the Sep’12 quarter to 18.3Mt largely due to dragline outages at Navajo Coal and an unplanned shutdown at San Juan Coal (both US). However, production for the Dec’12 half was 7% higher at 37.9Mt underpinned by record production at New South Wales Energy Coal, which continued to benefit from the ramp up of the RX1 project. | Shaw |
| BLD | BLD has upgraded its outlook for HY 2013 profit from approx $35M (recent company guidance) to $52M (subject to audit) – Shaw forecast $44.5M. BLD is due to announce its audited HY 2013 profit on 13 February. BLD attributed the improved outlook to an improved performance from Australian Construction Materials with better weather conditions, plus early benefits from BLD’s announced restructuring activities. These factors were discussed in Shaw’s recent report on BLD. Shaw had forecast the HY 2013 profit to be $44.5M – 27% above the company’s guidance. We will upgrade our FY forecast on receipt of the audited HY results. Being in a period of transition with the announced (and yet to be announced) restructuring under the new MD Mike Kane, forecasting actual profits is problematic, however the trends are visible. BLD has separated Gypsum as a separate division within its Segments, possibly indicating a sale of this business, or growth via acquisition. The group has further opportunities for restructuring, with some more fine tuning of staffing levels, sale of some smaller businesses with in Construction Materials that are not value accretive or synergistic, and (with ACCC approval) possibly some further industry consolidation with Cement. | Shaw |
| CRF | Centro Retail announces that as a result of preliminary property valuations conducted as at 31 December 2012, its directly owned portfolio increased in value by $60.6 million or 1.6%, and the total managed property portfolio was up $74.0 million or 1.1% compared with values as at 30 June 2012. | Company report |
| EVR | Endeavour Mining announces the results of a positive NI 43-101 Preliminary Economic Assessment (PEA) of its Houndé Gold Project in Burkina Faso together with an updated mineral resource estimate for the project and positive in-fill drill results completed. Estimated potential average annual production of 161,000 gold ozs per year over a 10 year mine life, with total life of mine production of 1.61 million ozs. An average 91% process recovery at a milling rate of 8,000 tonnes per day supplying a conventional gravity/CIL circuit. Owner operated open pit mining and a potentially economic portion of the resource of 28 million tonnes grading 2.0 g/t Au (at 0.91 g/t Au cut-off) Initial start-up capital is estimated at $303 million with sustaining capital estimated at $57 million (excluding VAT and import duties) at cash cost of $563/oz | Company report |
| FBU | margins under pressure due to rising competition in NZ as high Kiwi dollar and low shipping costs have alloed smaller groups to import building materials rather than buy them from local suppliers. | AFR |
| FGE | Forge Group Power, has been awarded a circa $125 million Engineering, Procurement and Construction contract with a follow on Operation & Maintenance contract from Regional Power Corporation. | Company report |
| GUD | GUD’s 1H13 underlying EBIT was down 16% to $32.7 mn, in line with guidance provided at its AGM in November. We initiate coverage with a Hold rating and a 12 month TP of $8.24. Reported NPAT (Including one offs) was down $3.6mn or 21% on pcp reflecting integration and restructuring costs for Dexion. Underlying net profit was 8.7% lower at $21.7mn. An Interim dividend of 26cps (30 cps pcp) and confirmation of a special dividend of 10cps with the interim and intention to pay a second 10 cps special dividend with the full year result, was announced, but otherwise there were no details re further new capital management initiatives. GUD is not a growth story but as discussed in our note it has a solid earnings profile that should permit dividends to continue to be paid. We therefore see it as a reasonably dependable yield play, offering a forecast net yield of 6.8% (excluding specials), 9.2% in FY13 including special dividends, | Shaw |
| GUD | GUD trying to lower costs, pursue offshore alliances and revise the product development of its small electric apppliance brand, Sunbeam, to deal with higher overseas cometition | AFR |
| KCN | Kingsgate is pleased to announce the signing of a Binding MoU with Caravel Minerals for the sale of Kingsgate’s WA and Qld exploration assets to Caravel. The package is principally comprised of exploration areas that were acquired with the acquisition of Dominion Mining Ltd in 2011. Consideration for the sale will be shares in Caravel, with Kingsgate becoming the largest shareholder in Caravel once the transaction is completed. The principal commercial terms of the transaction outlined in the MOU are as follows: 135,000,000 fully paid ordinary shares in the issued capital of Caravel; and 20,000,000 unlisted options to acquire Caravel shares exercisable at 10 cents on or before 3 years from the date of issue and otherwise on the terms and conditions to be agreed | Company report |
| LLC | LLC has been forced to unearth around $500m after investors sought to exit the developer’s wholesale office fund, which is supporting the company’s $6 billion Barangaroo South venture in Sydney. | The Australian |
| LNC | Linc Energy is pleased to announce that two separately commissioned and independent reports from DeGolyer and MacNaughton (D&M) and Gustavson have confirmed the significant resource potential of the three formations of the Arckaringa Basin (the Stuart Range, Boorthanna and Pre-Permian). The unrisked prospective resources for unconventional reservoirs in the Arckaringa Basin have been estimated by Gustavson to be 233bboe and by D&M to be 103bboe. | Company report |
| NMG | Noble Mineral Resources announced that it had accepted an A$85 million financing offer from Resolute Mining. Acceptance of the Resolute financing offer represented the culmination of a process whereby Noble had actively investigated options available to it to raise additional funding to progress the development of the Company’s flagship asset, the Bibiani gold project | Company report |
| NST | High-grade results up to 29gpt gold received at the Belvedere Prospect 8km from Paulsens Gold Mine. Belvedere is located on the same 25km-long mineralised structure which hosts Paulsens Gold Mine. Significant results from Belvedere include 8m @ 14.7 g/t Au and 47g/t Ag | Company report |
| PNA | PanAust is pleased to announce that it has entered into loan agreements for debt facilities totalling US$275m. The facilities comprise a US$250 million revolving debt facility with a syndicate of seven banks led by ANZ Bank, and a US$25 million working capital facility with ANZ (Laos). The facilities are secured by the Company’s assets in Laos and will be used for general corporate purposes including funding of working capital and operating expenses, and to fund capital expenditure on growth projects in Laos. Drawdown on the facilities is subject to conditions precedent usual for facilities of this type. The revolving debt facility replaces the previous US$100 million facility entered into in 2010 which was scheduled to mature in the September quarter 2013. | Company report |
| PXS | For the December 2012 quarter, sales of $838,000 compared to $341,000 in 2011 and $584,000 in the September 2012 quarter. Sales of Bronchitol for the quarter were $455,000 compared to $237,000 in the September 2012 quarter, with Germany and Australia making up approximately 67% and 29% of Bronchitol sales respectively. Grant and other income include the Australian R&D tax incentive receivable on eligible research carried out during the current quarter. Commercial expenses of $3.7 million compares to $2.7 million in 2011 and $2.9 million in the September 2012 quarter. The current quarter includes increased direct promotional expenses associated with the launch and sale of Bronchitol in Europe and Australia. A US FDA advisory committee meeting on 30th January to discuss the Bronchitol. US marketing application. US FDA decision on Bronchitol marketing application on 18th March. Results from the Phase 3 Bronchitol bronchiectasis clinical trial (B305). Bronchitol is available through selected European countries but, so far only in Germany on an unencumbered basis. For example, while Bronchitol has been determined to be a cost effective use of the UK’s health care budget, not all hospital formulary applications have been processed and there are cost effectiveness discussions in progress in Scotland, Ireland and France. This will be a major focus of attention during the early part of 2013. Germany represents the largest market in Europe and we have a team of highly educated and motivated sales and marketing professionals responsible for the introduction of Bronchitol. Bronchitol is approved in Europe for people with CF aged 18 and over. It is important that people with CF have access to Bronchitol as early as possible in their life because it offers the possibility of slowing loss of lung function. In order to expand the current indication to people aged 6 and over a clinical trial design has now been approved by the European regulator that meets our post approval commitment of earlier in the year. This trial will study the effects of Bronchitol on lung function over an 8 week period in children and adolescents and is scheduled to start in early 2013. The primary endpoint of the trial will again be lung function and the results from the trial are expected in 2014. Before a new drug can be included on the list of drugs approved for reimbursement by the Australian government, an application has to be made to the Pharmaceutical Benefits Advisory Committee, which determines the cost effectiveness of new medicines. Bronchitol has been the subject of this review and, as from the 1st of August 2012, has been included on the Pharmaceutical Benefits Scheme. While the current listing is somewhat cumbersome, we continue to work with PBAC in order to streamline the process and facilitate easier access to Bronchitol on a reimbursed basis. Australia has nearly 3,000 patients with cystic fibrosis treated through 22 centres and Bronchitol has marketing approval for those patients with CF 6 years of age and over. | Company report |
| RCR | RCR Tomlinson is pleased to announce that it expects to report an increase in NPAT for the half-year to 31 December 2012. NPAT is expected to be $15.5m, representing an increase of at least 70 per cent on the previous corresponding period. Furthermore, EBIT is expected to be between $18.5m, underpinned by solid revenues and improved margins. RCR’s performance for the six months to December 2012 has been driven by a well balanced order book, which included continued growth in both recurring and major projects revenues. Commenting on RCR’s earnings upgrade Managing Director, Paul Dalgleish said “RCR will deliver record first half revenue and earnings, following three consecutive years of earnings growth.” | Company report |
| RIO | may seek to introduce an Indian or Chinese partner on its Mozambique coal assets to lessen the risk profile and funding burden now that infrastructure solutions appear tougher than originally expected | AFR |
| RSG | Total gold production for the quarter of 107,399oz (115,544) was achieved at a cash cost of $867/oz ($705). Production at Syama in Mali for the quarter was a record of 46,188oz (45,272) of gold at a cash cost of $919/oz ($741). Gold production at Ravenswood in Australia generated 33,123oz (35,948) at a cash cost of $844/oz ($731). Production at Golden Pride in Tanzania for the quarter was 28,088oz (34,324) of gold at a cash cost of $807/oz ($631). | Company report |
| SBM | St Barbara said its quarterly gold output rose 19% as it dug up higher-grade ore and overcame truck haulage issues at a flagship Australia mines, and forecast production to continue to rise through June. Gold production totaled 92,691 troy ounces in the three months to Dec. 31 after issues with its fleet of trucks at the Gwalia operation in WA were resolved. St Barbara also mined material with a higher gold content from its underground operation there. Output also benefited from the addition of the Gold Ridge and Simberi mines, which St Barbara acquired as part of its takeover of Allied Gold Mining last year. St Barbara acquired Allied Gold in September, in what was the largest takeover in the Australian gold sector in two years. St Barbara said it was on track to meet output guidance of 371,000-401,000 ounces in the year to June 30. To reach the upper end of its guidance, St Barbara would have to produce around 230,000 ounces in the second half of the year, up from 170,000 ounces in the first half. The outlook for the third and fourth quarters is strong, the company said. St Barbara described the last three months as a “difficult quarter” for the Gold Ridge operations in the Solomon Islands, but said the mine’s performance is now improving. Production at Simberi in Papua New Guinea is also expected to increase with the completion of its oxide processing expansion project, due to finish in April. | iress |
| SGM | SGM will concentrate on uncovering possible fraud at two of the metal recycler’s locations in Britain | AFR |
| SXY | Senex Energy produced 660,136 barrels of oil (net) from operated and non-operated fields in the six months to 31 December 2012, representing a 10% improvement on the full year result for 2011/12 and a 70% increase on the previous six months. Senex has contracted two rigs to undertake its planned oil and gas exploration campaigns for 2012/13 and 2013/14. New oil wells were completed for production at the Snatcher and Growler oil fields during the quarter and Spitfire was completed for production in January. In addition, the Mustang-1 well was placed on extended production test in November 2012 and the Snatcher-6 well was placed on production in late December 2012. Two pipelines linking the Growler oil field to the Moomba oil processing facility became operational on 12 December 2012. Senex completed the Skipton-1 and Kingston Rule-1 wells which intersected 75 metres and 53 metres respectively of net gas pay from the tight sands of the Patchawarra Formation. Five unconventional gas exploration wells will undergo fracture stimulation during the March quarter. | Company report |
| TEN | Ten Network Holdings announced an underwritten 4 for 5 pro rata accelerated non-renounceable entitlement offer of new TEN shares at an offer price of $0.20 per New Share to raise approximately $230m. The institutional component of the Entitlement Offer was successfully completed on Friday, 7 December 2012, raising gross proceeds of approximately $175m.Eligible retail shareholders subscribed for approximately 194m New Shares (approximately $39m) under the Retail Entitlement Offer. As the Retail Entitlement Offer is fully underwritten, the balance of approximately 80m shares (approximately $16m) comprising shares not subscribed for by eligible retail shareholders, and the entitlements of ineligible retail shareholders, will be issued to the underwriter and sub-underwriters of the Retail Entitlement Offer. | Company report |
| TSE | speculation of a possible write-down of the exploration assets of its oil and gas driller, Easternwell. | AFR |
| TXN | Texon Petroleum announced two separate proposals designed to provide value for Texon shareholders. They are: a proposal to demerge by scheme of arrangement and list a Texon subsidiary, Talon Petroleum, which would hold Texon’s non Eagle Ford Shale (EFS) assets (the Demerger Scheme). Under the terms of the Demerger Scheme as now proposed, Texon shareholders will receive two Talon shares for every five Texon shares held at the record date; and – a proposal for Sundance Energy to acquire by scheme of arrangement, after the implementation of the Demerger Scheme, all Texon shares (and thereby acquire Texon’s EFS assets) in return for one new Sundance share for every two Texon Shares held at the record date (Acquisition Scheme). The Texon Directors unanimously recommend that shareholders vote in favour of both the Demerger Scheme and the Acquisition Scheme and the capital reduction resolution to be proposed at the General Meeting, in the absence of a Superior Proposal. | Company report |
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