Aurizon Holdings Ltd (AZJ):
Aurizon Holdings said returns offered under a preliminary decision by Queensland state’s competition authority on the pricing of access to its rail network are insufficient, and that the regulator “fundamentally fails” to recognise the risks it faces operating the coal haulage routes. Under the latest so-called access undertaking, Aurizon (AZJ) would be allowed to collect a maximum revenue from the Queensland coal network of $3.89 billion for fiscal years 2018 through 2021, $1 billion below what Aurizon proposed. “Aurizon maintains the very strong view that the proposed rate of return of 5.41 per cent does not promote the economically efficient operation of, use of and investment in, the CQCN (Central Queensland Coal Network),” Aurizon said in response to the draft decision.
BlueScope Steel Limited (BSL):
BlueScope Steel shares jumped yesterday after Australia was-exempted from US steel and aluminium tariffs. BlueScope boss Mark Vassella described the exemption as a “fantastic outcome” for the Port Kembla steel works. And British industrialist billionaire Sanjeev Gupta, who bought Arrium’s ailing Whyalla steelworks from administrators last year, has confirmed there will be no impact to his local -operations. Confirmation that US President Donald Trump would carve Australia out of his planned 25 per cent tariffs on steel and 10 per cent tariffs on aluminium was given on Friday in the US, after sustained lobbying from the Turnbull government and Australian companies. Australia exports up to $US400 million worth of steel and aluminium to the US each year.
Immutep Ltd (IMM):
The Lucy Turnbull-backed biotech Immutep has signed a deal with pharmaceutical giant Merck to test the junior’s cancer drug after raising about $7 million to fund future clinical trials. Merck, fresh from its $500 million takeover of Australian cancer drug start-up Viralytics, agreed with Immutep to conduct a clinical trial on the combination of their immunotherapy drugs in patients with non-small cell lung cancer, head and neck cancer, or ovarian cancer. Shares in Australian-listed Immutep, which was previously chaired by Mrs Turnbull, increased 16.7 per cent on the news to close at 2.8c.
OZ Minerals Limited (OZL):
OZ Minerals’ South Australian power transmission solution has drawn a mixed reaction from analysts, with Deutsche Bank giving it the thumbs up but Credit Suisse saying it fails to address where its extra power supply will come from. On Friday, OZ Minerals released a power strategy to provide reliable and affordable power for its operations after 2020, when the new Carrrapateena mine starts and current access to BHP’s Olympic Dam transmission line expires. The first phase is 400km of transmission lines to connect to the South Australian grid. The second is to contract extra generation being built, including SolarReserve’s solar thermal generation and storage near Port Augusta, other renewable sources and “traditional sources”. Credit Suisse said the strategy did not address where the power would come from.
Fairfax Media Limited (FXJ):
Fairfax Media today appointed James Chessell as group executive editor of its Australian Metro Publishing division. The new role was created by Chris Janz, managing director of Australian Metro Publishing, but does not include supervision of The Australian Financial Review, where editor in chief Michael Stutchbury will report directly to Janz. Chessell, a former media business writer for The Australian, will have editorial responsibility for The Sydney Morning Herald, The Age and The Canberra Times newspapers as well as the Brisbane Times and WAtoday websites and Fairfax’s Life Media division. Janz created in the new role after pondering how to restructure the editorial division when editorial director Sean Aylmer left last October. Chessell said: “I am thrilled to be leading Fairfax’s metro newsrooms. It is a tremendous honour and responsibility. Our journalists are some of the most accomplished and experienced in the country.
Mcgrath Ltd (MEA):
Weeks after a board and management exodus, John McGrath’s listed real estate agency has warned of another profit crash, blaming the lower sales volumes for its ongoing woes. Company founder Mr -McGrath, who has pledged to take a more active role in the business, continues to shun the limelight and left it to new chief executive Geoff Lucas to break the news of the downgrade. Mr Lucas yesterday said the downgrade, after an “initial review” of the business, showed it would not even hit the slashed guidance given in January. The real estate agency tips full-year earnings of between $1 million and $1.5m after taking about $4m in expected one-off cash costs. In January, it forecast earnings between $5.8m and $6.8m.
Sundance Energy Australia Ltd (SEA):
Ambitious oil and gas play Sundance Energy is set to dramatically expand its exposure to the US shale industry after it launched a $331 million equity raising. Sundance, which went into a trading halt yesterday, will use the proceeds to fund the acquisition of interests in the prolific Eagle Ford shale basin in Texas. The equity raising, which will comprise an initial $22m placement, a $235m placement conditional on shareholder approval and a $72m entitlement offer to existing Sundance investors, is well in excess of Sundance’s current market capitalisation of just over $90m. A term sheet obtained by The Australian says the Eagle Ford interests are being acquired from US group Pioneer Natural Resources, India’s Reliance Industries and Newpek.
Telstra Corporation Ltd (TLS):
Telstra is looking for a new chief information officer after John Romano was let go by the telco after a two-year stint. Mr Romano’s exit will see the veteran executive end a 30-year relationship with Telstra. He took on the CIO and the chief digital officer role in 2016. Earlier, Mr Romano was in charge of the Telstra Property Group looking after the telco’s network facilities. A Telstra spokesman told The Australian Mr Romano’s roles would be filled by chief technology officer Hakan Ericsson until the telco found a permanent replacement. “The decision was Telstra’s and John’s departure is not related to any other leadership changes at Telstra,” the spokesman said. Mr Romano’s tenure as CIO saw him lead the telco’s digitisation program as Telstra strove to improve its customer service and digitise its processes and functions. The digital makeover is a big part of Telstra’s $3 billion investment in transformation, with about $2bn of that allocated to digitisation.
(Source: AIMS)
Aurizon Holdings said returns offered under a preliminary decision by Queensland state’s competition authority on the pricing of access to its rail network are insufficient, and that the regulator “fundamentally fails” to recognise the risks it faces operating the coal haulage routes. Under the latest so-called access undertaking, Aurizon (AZJ) would be allowed to collect a maximum revenue from the Queensland coal network of $3.89 billion for fiscal years 2018 through 2021, $1 billion below what Aurizon proposed. “Aurizon maintains the very strong view that the proposed rate of return of 5.41 per cent does not promote the economically efficient operation of, use of and investment in, the CQCN (Central Queensland Coal Network),” Aurizon said in response to the draft decision.
BlueScope Steel Limited (BSL):
BlueScope Steel shares jumped yesterday after Australia was-exempted from US steel and aluminium tariffs. BlueScope boss Mark Vassella described the exemption as a “fantastic outcome” for the Port Kembla steel works. And British industrialist billionaire Sanjeev Gupta, who bought Arrium’s ailing Whyalla steelworks from administrators last year, has confirmed there will be no impact to his local -operations. Confirmation that US President Donald Trump would carve Australia out of his planned 25 per cent tariffs on steel and 10 per cent tariffs on aluminium was given on Friday in the US, after sustained lobbying from the Turnbull government and Australian companies. Australia exports up to $US400 million worth of steel and aluminium to the US each year.
Immutep Ltd (IMM):
The Lucy Turnbull-backed biotech Immutep has signed a deal with pharmaceutical giant Merck to test the junior’s cancer drug after raising about $7 million to fund future clinical trials. Merck, fresh from its $500 million takeover of Australian cancer drug start-up Viralytics, agreed with Immutep to conduct a clinical trial on the combination of their immunotherapy drugs in patients with non-small cell lung cancer, head and neck cancer, or ovarian cancer. Shares in Australian-listed Immutep, which was previously chaired by Mrs Turnbull, increased 16.7 per cent on the news to close at 2.8c.
OZ Minerals Limited (OZL):
OZ Minerals’ South Australian power transmission solution has drawn a mixed reaction from analysts, with Deutsche Bank giving it the thumbs up but Credit Suisse saying it fails to address where its extra power supply will come from. On Friday, OZ Minerals released a power strategy to provide reliable and affordable power for its operations after 2020, when the new Carrrapateena mine starts and current access to BHP’s Olympic Dam transmission line expires. The first phase is 400km of transmission lines to connect to the South Australian grid. The second is to contract extra generation being built, including SolarReserve’s solar thermal generation and storage near Port Augusta, other renewable sources and “traditional sources”. Credit Suisse said the strategy did not address where the power would come from.
Fairfax Media Limited (FXJ):
Fairfax Media today appointed James Chessell as group executive editor of its Australian Metro Publishing division. The new role was created by Chris Janz, managing director of Australian Metro Publishing, but does not include supervision of The Australian Financial Review, where editor in chief Michael Stutchbury will report directly to Janz. Chessell, a former media business writer for The Australian, will have editorial responsibility for The Sydney Morning Herald, The Age and The Canberra Times newspapers as well as the Brisbane Times and WAtoday websites and Fairfax’s Life Media division. Janz created in the new role after pondering how to restructure the editorial division when editorial director Sean Aylmer left last October. Chessell said: “I am thrilled to be leading Fairfax’s metro newsrooms. It is a tremendous honour and responsibility. Our journalists are some of the most accomplished and experienced in the country.
Mcgrath Ltd (MEA):
Weeks after a board and management exodus, John McGrath’s listed real estate agency has warned of another profit crash, blaming the lower sales volumes for its ongoing woes. Company founder Mr -McGrath, who has pledged to take a more active role in the business, continues to shun the limelight and left it to new chief executive Geoff Lucas to break the news of the downgrade. Mr Lucas yesterday said the downgrade, after an “initial review” of the business, showed it would not even hit the slashed guidance given in January. The real estate agency tips full-year earnings of between $1 million and $1.5m after taking about $4m in expected one-off cash costs. In January, it forecast earnings between $5.8m and $6.8m.
Sundance Energy Australia Ltd (SEA):
Ambitious oil and gas play Sundance Energy is set to dramatically expand its exposure to the US shale industry after it launched a $331 million equity raising. Sundance, which went into a trading halt yesterday, will use the proceeds to fund the acquisition of interests in the prolific Eagle Ford shale basin in Texas. The equity raising, which will comprise an initial $22m placement, a $235m placement conditional on shareholder approval and a $72m entitlement offer to existing Sundance investors, is well in excess of Sundance’s current market capitalisation of just over $90m. A term sheet obtained by The Australian says the Eagle Ford interests are being acquired from US group Pioneer Natural Resources, India’s Reliance Industries and Newpek.
Telstra Corporation Ltd (TLS):
Telstra is looking for a new chief information officer after John Romano was let go by the telco after a two-year stint. Mr Romano’s exit will see the veteran executive end a 30-year relationship with Telstra. He took on the CIO and the chief digital officer role in 2016. Earlier, Mr Romano was in charge of the Telstra Property Group looking after the telco’s network facilities. A Telstra spokesman told The Australian Mr Romano’s roles would be filled by chief technology officer Hakan Ericsson until the telco found a permanent replacement. “The decision was Telstra’s and John’s departure is not related to any other leadership changes at Telstra,” the spokesman said. Mr Romano’s tenure as CIO saw him lead the telco’s digitisation program as Telstra strove to improve its customer service and digitise its processes and functions. The digital makeover is a big part of Telstra’s $3 billion investment in transformation, with about $2bn of that allocated to digitisation.
(Source: AIMS)
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