Bega Cheese Ltd (BGA):
Bega Cheese has expanded its dairy holdings with the $250 million purchase of the Koroit processing plant from Saputo. The deal was forced by the ACCC which was concerned Saputo’s $1.3 billion takeover of Murray Goulburn would result in more control to Saputo and Fonterra in the western districts of Victoria. Saputo is now the biggest dairy processor in Australia with three billion litres followed by Fonterra at two billion litres, Palamat and Lion at one billion litres and Bega (BGA) at 650 million. Bega chief Paul van Heerwaarden said in a statement “the Koroit facility will provide us with a significant presence in Western Victoria with operational flexibility with our other milk processing sites.” Bega chair Barry Irvin said “Bega has been collecting milk in Western Victoria for 10 years and the opportunity to acquire such a significant and quality infrastructure will cement our presence in one of the strongest dairy regions in Australia.” Bega said the plant would generate annualised earnings of $20 million assuming the present intake of 300 million litres.
BHP Billiton Limited (BHP):
BHP Billiton said it produced 3 per cent more iron ore last fiscal year, as its Australian mining operations churned out the commodity at record rates, while the company’s output of copper jumped and petroleum fell. The world’s biggest miner (BHP) by market value on Wednesday reported iron-ore production totalling 238 million metric tons in the year through June. That was up from 231 million tons in the 12 months immediately prior, and at the top end of its 236-238 million-ton forecast range. The company said its Australian operations hit a record annualised output rate during its fiscal fourth-quarter of 289 million tons, including the share of joint venture partners. BHP said output of copper during the 12-month period surged 32 per cent on the year prior because of rising production at the Escondida mine it manages in Chile. Output from Escondida, the world’s biggest copper mine, has risen following an expansion of its processing facilities. Year-earlier production there was also disrupted by a worker strike. The company’s petroleum production slumped by 8 per cent due to natural field decline although, at 192 million barrels of oil equivalent, volumes topped its 180 million-190 million-barrel forecast range. BHP meantime reported a 7 per cent rise in steelmaking coal output, and flat production of thermal coal, used to generate electricity. It also said it would likely record a charge of $US440 million ($596m) in its financial results next month, tied to the 2015 Samarco dam failure in Brazil.
Commonwealth Bank (CBA):
Commonwealth Bank is considering separating Aussie Home Loans and its Mortgage Choice stake from its planned $8 billion demerger and could sell the two assets before the spin-off occurs next year. The bank is understood to have commissioned global recruitment firm Spencer Stuart to find a chief executive to lead the demerged Colonial First State, which is currently undergoing a structural separation from CBA. CBA is believed to be keenly looking at separating Aussie Home Loans and its 20 per cent stake in Mortgage Choice from the demerged entity.
Evolution Mining Ltd (EVN):
Evolution Mining will pay Norton Gold Fields more than $15 million to terminate the historic rights to mine and process ore from several gold deposits in Western Australia. The deal will allow Evolution (EVN) to explore and develop tenements near its Mungari processing facility in Western Australia, including its Castle Hill deposit, which was estimated to have an attributable 23.06 million tonnes of ore in December last year. In addition to an upfront payment of $12m and an additional cash payment of $3m at the completion of the transaction, Evolution will pay Norton a 2 per cent net smelter return royalty over the first 38,000 ounces of gold production from certain tenements within the Castle Hill deposit area. “The agreement allows Evolution to explore and develop an important package of tenements at Mungari that were effectively quarantined by the rights held by Norton,” the company told the market this morning. “The agreement delivers an immediate boost in ore reserves attributable to the Mungari operation is expected to materially extend the mine life at Mungari.”
Northern Star Resources Ltd (NST):
Northern Star Resources set a higher bar for annual gold production, after a strong performance from its Australian mines helped it to beat a target for the 2018 fiscal year. Northern Star (NST) said it expects to produce between 600,000 and 640,000 troy ounces of gold in the year through June 2019, at an all-in sustaining cost of $1,025 to $1,125 an ounce. If the top end of that production-guidance range is achieved, it would represent an 11 per cent increase on the 575,121 ounces of gold dug up in the just-ended fiscal year. The company had targeted output of as much as 560,000 ounces in fiscal 2018. Northern Star said its cash and equivalents rose by $73 million over the three months through June to $512m, and it has no bank debt. The company’s strong balance sheet has enabled its exploration budget to grow to a record $60m, up 33 per cent on before.
Oil Search Limited (OSH):
Oil Search chief Peter Botten says a surge in demand for liquefied natural gas from Asian buyers will push the market into balance early next decade, bolstering its plan to build three new export trains with its partners in Papua New Guinea. “All of the old capacity is being very rapidly taken up by new demand,” Mr Botten told The Australian. “The oversupply situation is unwinding faster than most people had expected and there is now a need to sanction a whole range of new supply to get that into the market and make those investment decisions over the next 18 months to two years.” With the broad parameters of an expansion being discussed with its partners in the ExxonMobil-run PNG LNG plant and the Total-run Papua LNG, a decision to proceed with front-end engineering and design studies on the development could by made by November, according to Mr Botten. A final investment decision is due before the end of 2019. The energy company, rocked by a massive earthquake in PNG’s highlands region in February, managed to stick with its 2018 production target despite being forced to halt operations following the natural disaster.
Transurban Group (TCL):
As capital hungry Transurban Group and its bankers prepare another potential equity raising, its investors are back thinking about the company's all-important distribution yield. Transurban is expected to pay 56¢ per security for the 2018 financial year, representing about a 4.7 per cent yield, increasing to 61¢ next year, 66¢ in the 2020 financial year and 64¢ in 2021, according to Bloomberg consensus forecasts. That's the sort of yield investors have come to expect from Australia's No.1 tollroads company. While most would like a bit more, they know Transurban is delicately positioned between growth projects in Australia and North America and paying cash to investors. Reports The Australian Financial Review Woolworths (WOW): The latest Woolworths supplier forum held last week was, by all reports, pretty dull – until it wasn't. Chanticleer has been told from several sources that many suppliers were surprised when Woolworths executives outlined their plans to change the way the grocery giant shares sales data. Woolworths is in the midst of a revamp of its data-sharing services, including launching a tender process that will see new providers and existing data research partners (IRI, Nielsen and Woolworths' 50 per cent owned data analytics firm Quantium) compete to help implement new services.
(Source: AIMS)
Bega Cheese has expanded its dairy holdings with the $250 million purchase of the Koroit processing plant from Saputo. The deal was forced by the ACCC which was concerned Saputo’s $1.3 billion takeover of Murray Goulburn would result in more control to Saputo and Fonterra in the western districts of Victoria. Saputo is now the biggest dairy processor in Australia with three billion litres followed by Fonterra at two billion litres, Palamat and Lion at one billion litres and Bega (BGA) at 650 million. Bega chief Paul van Heerwaarden said in a statement “the Koroit facility will provide us with a significant presence in Western Victoria with operational flexibility with our other milk processing sites.” Bega chair Barry Irvin said “Bega has been collecting milk in Western Victoria for 10 years and the opportunity to acquire such a significant and quality infrastructure will cement our presence in one of the strongest dairy regions in Australia.” Bega said the plant would generate annualised earnings of $20 million assuming the present intake of 300 million litres.
BHP Billiton Limited (BHP):
BHP Billiton said it produced 3 per cent more iron ore last fiscal year, as its Australian mining operations churned out the commodity at record rates, while the company’s output of copper jumped and petroleum fell. The world’s biggest miner (BHP) by market value on Wednesday reported iron-ore production totalling 238 million metric tons in the year through June. That was up from 231 million tons in the 12 months immediately prior, and at the top end of its 236-238 million-ton forecast range. The company said its Australian operations hit a record annualised output rate during its fiscal fourth-quarter of 289 million tons, including the share of joint venture partners. BHP said output of copper during the 12-month period surged 32 per cent on the year prior because of rising production at the Escondida mine it manages in Chile. Output from Escondida, the world’s biggest copper mine, has risen following an expansion of its processing facilities. Year-earlier production there was also disrupted by a worker strike. The company’s petroleum production slumped by 8 per cent due to natural field decline although, at 192 million barrels of oil equivalent, volumes topped its 180 million-190 million-barrel forecast range. BHP meantime reported a 7 per cent rise in steelmaking coal output, and flat production of thermal coal, used to generate electricity. It also said it would likely record a charge of $US440 million ($596m) in its financial results next month, tied to the 2015 Samarco dam failure in Brazil.
Commonwealth Bank (CBA):
Commonwealth Bank is considering separating Aussie Home Loans and its Mortgage Choice stake from its planned $8 billion demerger and could sell the two assets before the spin-off occurs next year. The bank is understood to have commissioned global recruitment firm Spencer Stuart to find a chief executive to lead the demerged Colonial First State, which is currently undergoing a structural separation from CBA. CBA is believed to be keenly looking at separating Aussie Home Loans and its 20 per cent stake in Mortgage Choice from the demerged entity.
Evolution Mining Ltd (EVN):
Evolution Mining will pay Norton Gold Fields more than $15 million to terminate the historic rights to mine and process ore from several gold deposits in Western Australia. The deal will allow Evolution (EVN) to explore and develop tenements near its Mungari processing facility in Western Australia, including its Castle Hill deposit, which was estimated to have an attributable 23.06 million tonnes of ore in December last year. In addition to an upfront payment of $12m and an additional cash payment of $3m at the completion of the transaction, Evolution will pay Norton a 2 per cent net smelter return royalty over the first 38,000 ounces of gold production from certain tenements within the Castle Hill deposit area. “The agreement allows Evolution to explore and develop an important package of tenements at Mungari that were effectively quarantined by the rights held by Norton,” the company told the market this morning. “The agreement delivers an immediate boost in ore reserves attributable to the Mungari operation is expected to materially extend the mine life at Mungari.”
Northern Star Resources Ltd (NST):
Northern Star Resources set a higher bar for annual gold production, after a strong performance from its Australian mines helped it to beat a target for the 2018 fiscal year. Northern Star (NST) said it expects to produce between 600,000 and 640,000 troy ounces of gold in the year through June 2019, at an all-in sustaining cost of $1,025 to $1,125 an ounce. If the top end of that production-guidance range is achieved, it would represent an 11 per cent increase on the 575,121 ounces of gold dug up in the just-ended fiscal year. The company had targeted output of as much as 560,000 ounces in fiscal 2018. Northern Star said its cash and equivalents rose by $73 million over the three months through June to $512m, and it has no bank debt. The company’s strong balance sheet has enabled its exploration budget to grow to a record $60m, up 33 per cent on before.
Oil Search Limited (OSH):
Oil Search chief Peter Botten says a surge in demand for liquefied natural gas from Asian buyers will push the market into balance early next decade, bolstering its plan to build three new export trains with its partners in Papua New Guinea. “All of the old capacity is being very rapidly taken up by new demand,” Mr Botten told The Australian. “The oversupply situation is unwinding faster than most people had expected and there is now a need to sanction a whole range of new supply to get that into the market and make those investment decisions over the next 18 months to two years.” With the broad parameters of an expansion being discussed with its partners in the ExxonMobil-run PNG LNG plant and the Total-run Papua LNG, a decision to proceed with front-end engineering and design studies on the development could by made by November, according to Mr Botten. A final investment decision is due before the end of 2019. The energy company, rocked by a massive earthquake in PNG’s highlands region in February, managed to stick with its 2018 production target despite being forced to halt operations following the natural disaster.
Transurban Group (TCL):
As capital hungry Transurban Group and its bankers prepare another potential equity raising, its investors are back thinking about the company's all-important distribution yield. Transurban is expected to pay 56¢ per security for the 2018 financial year, representing about a 4.7 per cent yield, increasing to 61¢ next year, 66¢ in the 2020 financial year and 64¢ in 2021, according to Bloomberg consensus forecasts. That's the sort of yield investors have come to expect from Australia's No.1 tollroads company. While most would like a bit more, they know Transurban is delicately positioned between growth projects in Australia and North America and paying cash to investors. Reports The Australian Financial Review Woolworths (WOW): The latest Woolworths supplier forum held last week was, by all reports, pretty dull – until it wasn't. Chanticleer has been told from several sources that many suppliers were surprised when Woolworths executives outlined their plans to change the way the grocery giant shares sales data. Woolworths is in the midst of a revamp of its data-sharing services, including launching a tender process that will see new providers and existing data research partners (IRI, Nielsen and Woolworths' 50 per cent owned data analytics firm Quantium) compete to help implement new services.
(Source: AIMS)
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