| FWD | FWD and RIO have entered into a new accommodation agreement for the Searipple Village. The agreement commenced on 1 December 2012 and is for an initial term of one-year (with four 6-month options). Provides accommodation for up to 660 of RIO’s workforce. FWD will provision 220 new three bedroom accommodation units to replace some of the older four bedroom units in the village, along with an upgrade of some catering and recreational facilities. This will be at a net cost of ~$14m and is due for completion in March 2013. | Shaw |
| WHC | Whitehaven Coal today announced it has lodged an application for NSW State Government approval to truck a limited amount of coal from its Narrabri underground mine to its Gunnedah Coal Handling and Preparation Plant. The application has been made under Section 75W of the Environmental Planning and Assessment Act 1979 (EP&A Act) which relates to modifications to existing approvals. The application specifically relates to the emergency transport of coal by road until such time as the damaged railway has been repaired and rail transport of coal can recommence. Whitehaven also received updated advice from the Australian Rail Track Corporation (ARTC) advising it expects the track to return to operation by 25 December, 2012 | Company report |
| SPL | Starpharma announced the results of animal trials which show its dendrimer-enhanced version of docetaxel had significantly superior anti-cancer effects across a range of important cancer types when compared to Taxotere (docetaxel). Breast, prostate, lung and ovarian tumour types were tested. In each case the company’s dendrimer-docetaxel formulation was seen to significantly outperform the leading drug Taxotere. | Company report |
| BHP | BHP Billiton mulling bid for Walter Energy | Market Watch |
| AIX | AIX reported total passenger growth of 7.2 percent and 6.1 percent for the month and quarter to 30 September 2012 respectively, compared with the prior corresponding period (pcp), when weighted by AIX’s interest. Perth Airport reported growth in passenger numbers of 10.6 percent for the month, with domestic and international passenger numbers up 11.2 percent and 9.1 percent respectively, on the pcp. Melbourne Airport reported growth in passenger numbers of 8.0 percent for the month. Overall passenger growth at Queensland Airports Limited (QAL) for the month increased 13.1 percent compared to the pcp. On a consolidated basis, the total number of passengers through the German airports was consistent with the pcp for the month of September, but was above the pcp for the quarter.. Athens International Airport continued to be affected by the wider Greek economy, with total passenger numbers down 8.8 percent for the month. | Company report |
| Aust | AUSTRALIA posted a surprise fall in unemployment to 5.2pc, despite signs the mining-powered economy had cooled due to China’s slowdown. | The Australian |
| VAH | Tiger Airways Australia CEO Andrew David will jump ship to Jetstar, in the latest twist in the aviation scene | The Australian |
| QAN | Tiger Airways Australia CEO Andrew David will jump ship to Jetstar, in the latest twist in the aviation scene | The Australian |
| CFX | CFS Retail has executed AUD100 million of 7-year medium term notes (MTNs) ensuring continued duration and diversity of debt. The MTNs were priced at a coupon of 5.00% (5.1825% yield equivalent to swap+1.65% margin). They are senior and unsecured and will be used in part to replace a AUD50 million bank debt facility which is due to expire on 8 February 2013, and the remainder will contribute to capital expenditure on CFX’s development pipeline. Mr Gorman added: “As a result of the MTN issuance, the weighted average duration of our debt is extending by 0.1 years to 3.2 years and the weighted average duration of our hedged debt is extending by 0.2 years to 3.6 years, with a modest decrease in CFX’s overall cost of debt.” | Company report |
| LEI | John Holland has been awarded Stage 2 of construction of the new children’s hospital, after having successfully completed the first stage of the $1.2b project for the WA Government. The value of the works to be delivered by John Holland will total approximately $851m. Construction completion is scheduled for mid-2015. | Company report |
| BHP | Speculation continues to build that BHP Billiton is considering a bid for Walter Energy (WLT), whose closing share price of $31.66 gave it a market cap of $1.98B. BHP could make a $55 per share offer; if true, it would be the “swan song” for CEO Marius Kloppers, whose potential successor could be Xstrata’s Mick “the miner” Davis. | Seeking Alpha |
| EU | German factory orders rose 3.9% in October, far ahead of forecasts for a 1% increase, and the biggest jump in nearly two years. At least part of the gain was probably the result of a punk September, for which orders were revised to -3.3% from the initial report of -2.4%. | Seeking Alpha |
| US | The Senate is set to approve a bill today that grants Russia “permanent normal trade relations” by lifting Cold War-era restriction. With the House having passed its version of the measures, the bill would then go to President Obama for his signature. While the package is forecast to help exports to Russia double within five years, the country isn’t happy about provisions seeking to punish human rights violations. | Seeking Alpha |
| UK | The Bank of England has left its benchmark interest rate at 0.5%, while its £375B QE program expired at the end of October and has thus far not been replaced. | Seeking Alpha |
| CSL | CSL confirmed that it was considering moving manufacturing for new products overseas even though the group would maintain its local research and development division. Chief scientist Andrew Cuthbertson said the company remained committed to conducting its research and development locally, and reaffirmed that it was on track to increase its R&D spending by 15% this year to more than $400m, with most of the money going towards new product development | AFR |
| BLD | BLD announced it would begin importing clinker rather than making it locally, due to increasingly expensive overheads and the high Australian dollar | AFR |
| TEN | Mining magnate Gina Rinehart has not confirmed whether she will participate in the $230 million emergency capital raising launched by troubled free-to-air television broadcaster Ten Network Holdings | The Australian |
| Aust | Australia’s pipeline of liquefied natural gas export ventures have suffered more than $25 billion in cost overruns, with logistical problems, inclement weather, poor productivity and rising wages impacting such companies as BG, Santos Limited (STO), ExxonMobil and Woodside. The cost of the Chevron led Gorgon LNG project off the northwest coast of Australia has soared by $15B to $52B, due to rising wages, weak productivity, logistical problems, bad weather and the strong Australian dollar. Production could also be delayed. Chevron owns 50% of Gorgon, while Exxon and Shell own 25% each. Chevron may delay the most profitable part of its Gorgon gas project because of a $US15bn cost blow-out, saying it was pushing back approval of preliminary work for a fourth “train”, of gas processing plant and compounding worries the Australia risks missing out on LNG investment unless it becomes more competitive | Seeking Alpha |
| GNC | Moody’s Investor Services lowered its credit rating outlook on Archer Daniels Midland to negative from stable after the company increased its offer to takeover Australia’s GrainCorp | The Australian |
| BXB | rumour of possible demerger of business units | AFR |
| WOW | Woolworths may have to buy out its 33% JV partner in the Masters home improvement chain within the next 12 months | AFR |
| NUF | Crop protection company Nufarm has forecast earnings to rise by 15% in the first half as improvements in its SA & European operations offset weaker Australian sales | AFR |
| LLC | Lend Lease and the NSW government are arguing about how to determine the profit-share payments from the $6bn Barangaroo South project in Sydney | AFR |
| TWE | Treasury Wine Estates is making a pitch at the duty-free traveller market, hiring three senior executives to lead a push into a sector long dominated by spirits | The Australian |
| Aust | A surprise fall in the jobless rate for November has eased expectations for another RBA rate cut in February but does not change the softening employment outlook for next year as the economy battles a mining slowdown | SMH |
| EU | The European Central Bank slashed its economic forecast for the euro zone in 2013, signaling another year of misery ahead for the currency bloc. Europe’s top officials floated a proposal for a limited common euro-zone budget fund after 2014 but steered clear of many of the more ambitious plans for deepening integration in the single currency bloc | WSJ |
| UK | The U.K. Chancellor of the Exchequer said the spending cuts and tax increases needed to stabilize and then reduce government debt will continue three years longer than he had initially planned | WSJ |
| BTT | BTT Successfully executed the J O Hambro Capital Management acquisition. The transformation of BTIM from a domestic focused business into a global asset management business resulting in a business far more diversified and less reliant on any single asset class or product. Growth in funds under management during the course of the year by 9% to $46.6 billion as at the end of September 2012. Continued success in building our fixed interest capability. The launch of a range of new innovative products to reflect the demand for yield and income with low volatility aimed at the retiree market. All this leading to a step change in our business where revenue was up 52% to $192.5 million, and Cash Net Profit After Tax up 36% to $41.5 million. Cash Earnings Per Share were down 22% which primarily reflects lower domestic equity markets on average this year compared to the previous year and a difficult trading environment in Australia where growth assets across the industry have experienced outflows. | Company report |
| MYR | Total sales for the full year ended 28 July 2012 were down 1.3 percent to $3,119 million, a credible result considering the continued weak consumer sentiment. Successful initiatives to refine the merchandise mix, improve sourcing, and increase the contribution of Myer Exclusive Brands among others have combined to deliver a strong operating gross profit result, ahead of last year. Net profit after tax was $139.3 million, down 14.3 percent on last year. Myer is well capitalized, and the business is strongly cash generative. As such the Board is confident that Myer is well placed to navigate the challenges ahead. Uncertainty at a political level is also impacting business across Australia, at a time when business and consumers alike want and need certainty. Additional taxes and charges such as the carbon tax and the flood levy on the consumer certainly impact the discretionary retail sector, and current industrial relations settings have significantly increased our costs. As a Company, we are still frustrated by the duty and GST loophole that exists that provides overseas online retailers with an advantage over local retailers. The internet has broken down traditional trade barriers and it is critical that reforms keep pace to ensure our local businesses are competitive. | |
| ORE | Orocobre is pleased to announce that with joint venture partner Toyota Tsusho Corporation, the companies have executed the loan documentation for the project financing for Orocobre’s flagship Olaroz lithium projectocated in the Province of Jujuy, northern Argentina. The project financing will be provided by Mizuho Corporate Bank Ltd with a maximum facility amount of approximately US$192 million | Company report |
| RFE | RFE currently has three rigs active in the Mississippian play with 16 wells across four development areas at various stages from producing, completing, awaiting completion and drilling. A fourth rig is scheduled to commence operations in the first quarter of 2013. Seven horizontal wells now successfully producing to sales through permanent production facilities. Three new horizontal producers bought online in Development Area 2. Completion and reservoir stimulation underway and or set to be completed in December on three additional horizontal producers | Company report |
| LNC | Linc Energy is pleased to announce it has entered into an agreement to collaborate with DTEK Oil and Gas for the purpose of evaluating underground coal gasification (UCG) potential in the Ukraine on DTEK’s local coal resources. DTEK Holdings is the largest privately owned, vertically integrated energy company in Ukraine with interests in coal mining, power generation and electricity distribution companies. | Company report |
| LYC | The Malaysian Court of Appeal has scheduled 19 December 2012 as the hearing date for the appeal brought by parties associated with the Save Malaysia Stop Lynas group (SMSL) against the Kuantan High Court’s earlier refusal to grant a stay against the exercise of rights under Lynas’ Temporary Operating Licence. | Company report |
| MAH | Macmahon Holdings has confirmed that a 50:50 partnership between Macmahon and Bouygues Travaux Publics Australia has been awarded an Alliance contract by the NSW Government to deliver the North Strathfield Rail Underpass project. The $260 million (Macmahon value $130 million) contract will involve the construction of a new rail underpass, 3.2km of new track, civil and associated rail systems works and an upgrade of Concord West Station | Company report |
| VOC | Vocus have made a $9.8m acquisition of IPERA a fibre and data centre provider in Newcastle. Cost $9.8m, expected to add $2.3m-$2.5m to 2014 EBITDA. 55kms of dark fibre, 2 data centres, 81 buildings on fibre. EBITDA to purchase price 4x which is good. 12 month work out on purchase price, 25% paid in VOC stock. Will be earnings accretive and still leave company with firepower to do another deal. | Shaw |
| AJA | AJA today announced the sale of Ginowan, a retail asset owned by JPTD, for ¥2 billion (A$23.5 million at A$=¥85). This was one of the remaining 8 properties yet to be settled. The sale price represents a 1.2% premium to the most recent AJA book value of the asset (as at 30 June 2012) of ¥1.98 billion. AJA has exercised its option with the lender to extend the standstill period to 31 December to enable additional time to resolve issues relating to funding of the transaction for the remaining 7 properties yet to be settled. As before, during this period, neither the JPTD nor JPTA loan can be placed into default by the lender on the basis of it having matured. The 7 properties yet to be settled are listed in the Appendix and have a current book value of approximately ¥12.2 billion (A$143.5 million). If, during the extended standstill period, the lender receives a net payment of ¥8.36 billion (A$98.35 million) (‘Settlement Price’), then the lender will release its security over the 7 properties, and those properties will continue to be part of AJA’s portfolio. | Company report |
| GFF | Goodman Fielder has entered into an agreement to sell its Champion flour milling business in NZ to Nisshin Seifun Group Inc for NZ$51 million (excluding net cash proceeds of NZ Milling receivables and payables). The transaction is expected to be completed in February 2013, subject to the satisfaction of conditions. Goodman Fielder Chief Executive Officer, Chris Delaney, said the transaction was consistent with the company’s strategy to optimise its portfolio by focusing on its core categories. | Company report |
| AGK | AGL Energy advises that the Supreme Court of South Australia today granted permission to proceed with the action to challenge the decision by the Essential Services Commission of South Australia (ESCOSA) to amend its price determination of 14 December 2010. | Company report |
Filed under: Company News, World News
