A2 Milk Company Ltd (A2M):
In this morning's milk news, A2 has appointed a chief executive in Greater China, Li Xiao. He was be based in Shanghai and reports to A2's chief executive Asia Pacific, Peter Nathan. Mr Li's is "responsible for maximising the significant opportunities that the China market presents for the company". Meanwhile, Corio Bay Dairy Group announces this morning it has a supply agreement with Organic Dairy Farmers of Australia for "the first ever commercial quantity of organic A2 fresh milk to be processed into organic A2 nutritional dairy powder". The processing facility will be based in North Geelong in Victoria. Wattle Health Australia (which owns 45 per cent of Corio Bay Dairy Group) has first rights on all the milk produced by Corio Bay. Wattle Health believes it is the first company to offer an organic A2 milk range.
AGL Energy Limited (AGL):
AGL Energy reaped an extra $832 million in gross profits – a rise of 60 per cent – from its electricity wholesale business after the closure of the Hazelwood power station as it exercised "market power" to lift electricity prices to the detriment of customers, analysis by the Victoria Energy Policy Centre has determined. In all, the coal power generators in the southern and eastern states collected a combined additional $3.47 billion from higher spot-market revenues in the year after the huge Engie-owned Hazelwood plant in Victoria was shut down, according to the paper released on Monday. The generators, along with regulators and the market operator, acknowledge that wholesale power prices surged after the shutdown of Hazelwood, which removed about a quarter of Victoria's baseload supply, but they deny exercising power, something the Australian Energy Regulator also concluded.
Dacian Gold Ltd (DCN):
Issues with equipment at its Mt Morgans mine has prompted Dacian Gold to trim its production targets for the March quarter. In a note this morning, the WA miner said gold production was now expected to be between 36,000 to 38,000 ounces, similar to the previous quarter, at an AISC between $1400 to $1500 an ounce. “We are confident that the issues we faced in the March quarter have been resolved and we are forecasting a strong June quarter with a corresponding excellent all-in-sustaining-cost profile which puts us on track to achieve our targeted annualised production run-rate of 200,000oz,” chairman Rohan Williams said. DCN shares last down 11pc to $2.18.
Freedom Foods (FNP):
Freedom Foods says it is not interested in the Lion Dairy and Drinks portfolio, denying speculation it had been scoping out the business for potential acquisition. In a note to the market today, it said it was “not pursuing a bid for the LDD portfolio as part of any current sale process”. “As previously stated at Freedom Foods half year results presentations in February 2019, the Company remains focussed on delivering on its unique capabilities and opportunities across Dairy Beverages and Nutritionals, Plant Based Beverages and Specialty Cereals and Snacks.” Coca-Cola Amatil, Freedom’s rumoured partner for the buy, hosed down similar speculation two weeks ago. Today’s developments come after Lion Group chair Rod Eddington told The Australian’s Global Food Forum the company was prepared to retain the portfolio as prospective buyers dropped off. The last in the running is China’s Mengniu Dairy, said to be working with Macquarie Capital and Minter Ellison.
Jupiter Mines Ltd (JMS):
Jupiter Mines is reviewing its WA iron ore assets, in a bid to capitalise on the recent boost in the commodity. The assets, comprising the Mount Mason DSO Hematite and Mount Ida Magnetite projects, are 100pc owned by Jupiter and already well advanced. “The assets hold great value, particularly in the current iron ore market, in light of the drive towards higher grade iron ore feed in China and potential capacity on the rail and at port,” it said in a filing to the market. “The advanced nature of these projects, their proximity to established and available infrastructure (road, rail and port), the size and quality of the mineral resources and ease of mining and ore extraction provides an attractive opportunity to commence highgrade DSO hematite production and high-grade magnetite concentrate production that could underpin quality long-term supply.” Jupiter said it would review its strategic options, led by Hartleys as adviser but that the process would not require further funding nor would future dividends from Tshipi be used.
Perpetual Limited (PPT):
Perpetual’s new credit income trust could be just the ticket for retirees facing a loss of income if Labor goes ahead with its plan to limit cash refunds on franking credits if it wins the federal election. With a total return target equal to the RBA cash rate plus 3.25 per cent, paid monthly from an actively managed portfolio of credit and fixed income assets diversified by country, asset type, credit quality, loan maturity and issuer, the latest product offering from the 130-year-old fund manager should have broad appeal when the IPO opens to investors today. Perpetual’s head of credit and fixed income, Michael Korber, said the credit income trust should help meet the growing need for regular income for retail investors, who typically have one of the lowest allocations to fixed-income assets in the OECD.
REVA MEDICAL (RVA):
REVA Medical will stay in a voluntary suspension until 30 June, the company announced this morning. It has received emergency funding of $3 million from existing lenders to help with "immediate financial needs on an interim basis", but is in discussions about a broader restructure. Chief executive Reggie Groves has resigned, Jeff Anderson has been promoted. Doctor Stephen Oesterle will become a strategic advisor and resign from the board. Chairman C Raymond Larkin, Jr, said "Following a comprehensive review with the assistance of our outside advisors, REVA has entered into an agreement with a group of existing debt and equity holders to fund the company's near-term operations. This funding helps to ensure REVA has sufficient time to pursue long-term financial solutions that serve the interests of our many constituents - including patients, customers, employees, creditors, and shareholders". REVA went into a voluntary suspension on 20 February when it was trading at 17 cents.
Rio Tinto Limited (RIO):
Rio Tinto could consider increasing iron ore supply in a bid to shore up the market in the wake of the Vale dam disaster in Brazil, according to reports. According to Bloomberg, the miner has ruled out any short-term increase in output while it waits to evaluate the longer-term effects, particularly on high-grade ores. Rio is watching the impact of regulatory actions in Brazil for any medium-term effects that could justify a response, chief Jean-Sebastien Jacques said in an interview with Bloomberg TV in Beijing on Saturday. The iron ore price has rallied strongly since the Vale disaster in January but pulled back last week after the miner received approval from a Brazilian court to recommence mining at one of its operations.
Ruralco Holdings Ltd (RHL):
On Friday last week with the ACCC kicked off its merger review process of the proposed acquisition by Canadian agribusiness giant Nutrien. The regulator set a closing date for submissions of April 5 and a provisional date for the announcement of a final decision or statement of issues of June 13. There are less than a handful of towns with only two shopfront rural merchandise outlets and there remains a healthy presence from independents and few barriers to entry. Elders had the benefit of being able to offer tax concessional scrip for Ruralco but on March 14 slipped out an earnings downgrade well after market close. Its shares are down close to 8 per cent since the Nutrien bid was announced. Elders chief Mark Allison can at least channel his frustration at being gazzumped by the Canadians into his now infamous folk music sideline. Though shareholders will hope there aren't parallels to be drawn from one of his recent album titles, Schizophrenic Dreamtime.
Westpac Banking Corp (WBC):
Westpac has trimmed its cash earnings for the first half of 2019 by $260 million as it continues to remediate customers. In a note to the market today, it said approximately half of the estimated $260m provision related to its financial advice business while the remainder related to its business and consumer banking arm. But the provisions exclude any allowance for refunds for refunds for to customers of authorised representatives which are still being determined, and flagged to be released in its first half results. This latest hit comes after a $118m hit in the 2017 full year, and $281 last year. “As part of our ‘get it right put it right’ initiative we are determined to fix these issues and stop these errors occurring again,” chief Brian Hartzer said. “We will continue to review our products and services to ensure they deliver the right outcomes for customers, and if necessary, make further provisions.”
Woodside Petroleum Limited (WPL):
Energy producer Woodside Petroleum has evacuated its Pluto and North West Shelf LNG production plants ahead as Tropical Cyclone Veronica makes its way closer to the coast of the Pilbara. According to the Bureau of Meteorology, the cyclone is expected to waken further as it tracks westwards, with conditions already eased at Port Hedland. Woodside said it had evaculated all personell from its offshore production platforms off WA and was operating the North West Shelf and Pluto LNG plants on skeleton staff. “Once the immediate risks have passed, Woodside’s focus will remain the ongoing welfare of our people, their families and our communities, and the safe return to full operations of our production facilities,” the company told Reuters.
(Source: AIMS)
In this morning's milk news, A2 has appointed a chief executive in Greater China, Li Xiao. He was be based in Shanghai and reports to A2's chief executive Asia Pacific, Peter Nathan. Mr Li's is "responsible for maximising the significant opportunities that the China market presents for the company". Meanwhile, Corio Bay Dairy Group announces this morning it has a supply agreement with Organic Dairy Farmers of Australia for "the first ever commercial quantity of organic A2 fresh milk to be processed into organic A2 nutritional dairy powder". The processing facility will be based in North Geelong in Victoria. Wattle Health Australia (which owns 45 per cent of Corio Bay Dairy Group) has first rights on all the milk produced by Corio Bay. Wattle Health believes it is the first company to offer an organic A2 milk range.
AGL Energy Limited (AGL):
AGL Energy reaped an extra $832 million in gross profits – a rise of 60 per cent – from its electricity wholesale business after the closure of the Hazelwood power station as it exercised "market power" to lift electricity prices to the detriment of customers, analysis by the Victoria Energy Policy Centre has determined. In all, the coal power generators in the southern and eastern states collected a combined additional $3.47 billion from higher spot-market revenues in the year after the huge Engie-owned Hazelwood plant in Victoria was shut down, according to the paper released on Monday. The generators, along with regulators and the market operator, acknowledge that wholesale power prices surged after the shutdown of Hazelwood, which removed about a quarter of Victoria's baseload supply, but they deny exercising power, something the Australian Energy Regulator also concluded.
Dacian Gold Ltd (DCN):
Issues with equipment at its Mt Morgans mine has prompted Dacian Gold to trim its production targets for the March quarter. In a note this morning, the WA miner said gold production was now expected to be between 36,000 to 38,000 ounces, similar to the previous quarter, at an AISC between $1400 to $1500 an ounce. “We are confident that the issues we faced in the March quarter have been resolved and we are forecasting a strong June quarter with a corresponding excellent all-in-sustaining-cost profile which puts us on track to achieve our targeted annualised production run-rate of 200,000oz,” chairman Rohan Williams said. DCN shares last down 11pc to $2.18.
Freedom Foods (FNP):
Freedom Foods says it is not interested in the Lion Dairy and Drinks portfolio, denying speculation it had been scoping out the business for potential acquisition. In a note to the market today, it said it was “not pursuing a bid for the LDD portfolio as part of any current sale process”. “As previously stated at Freedom Foods half year results presentations in February 2019, the Company remains focussed on delivering on its unique capabilities and opportunities across Dairy Beverages and Nutritionals, Plant Based Beverages and Specialty Cereals and Snacks.” Coca-Cola Amatil, Freedom’s rumoured partner for the buy, hosed down similar speculation two weeks ago. Today’s developments come after Lion Group chair Rod Eddington told The Australian’s Global Food Forum the company was prepared to retain the portfolio as prospective buyers dropped off. The last in the running is China’s Mengniu Dairy, said to be working with Macquarie Capital and Minter Ellison.
Jupiter Mines Ltd (JMS):
Jupiter Mines is reviewing its WA iron ore assets, in a bid to capitalise on the recent boost in the commodity. The assets, comprising the Mount Mason DSO Hematite and Mount Ida Magnetite projects, are 100pc owned by Jupiter and already well advanced. “The assets hold great value, particularly in the current iron ore market, in light of the drive towards higher grade iron ore feed in China and potential capacity on the rail and at port,” it said in a filing to the market. “The advanced nature of these projects, their proximity to established and available infrastructure (road, rail and port), the size and quality of the mineral resources and ease of mining and ore extraction provides an attractive opportunity to commence highgrade DSO hematite production and high-grade magnetite concentrate production that could underpin quality long-term supply.” Jupiter said it would review its strategic options, led by Hartleys as adviser but that the process would not require further funding nor would future dividends from Tshipi be used.
Perpetual Limited (PPT):
Perpetual’s new credit income trust could be just the ticket for retirees facing a loss of income if Labor goes ahead with its plan to limit cash refunds on franking credits if it wins the federal election. With a total return target equal to the RBA cash rate plus 3.25 per cent, paid monthly from an actively managed portfolio of credit and fixed income assets diversified by country, asset type, credit quality, loan maturity and issuer, the latest product offering from the 130-year-old fund manager should have broad appeal when the IPO opens to investors today. Perpetual’s head of credit and fixed income, Michael Korber, said the credit income trust should help meet the growing need for regular income for retail investors, who typically have one of the lowest allocations to fixed-income assets in the OECD.
REVA MEDICAL (RVA):
REVA Medical will stay in a voluntary suspension until 30 June, the company announced this morning. It has received emergency funding of $3 million from existing lenders to help with "immediate financial needs on an interim basis", but is in discussions about a broader restructure. Chief executive Reggie Groves has resigned, Jeff Anderson has been promoted. Doctor Stephen Oesterle will become a strategic advisor and resign from the board. Chairman C Raymond Larkin, Jr, said "Following a comprehensive review with the assistance of our outside advisors, REVA has entered into an agreement with a group of existing debt and equity holders to fund the company's near-term operations. This funding helps to ensure REVA has sufficient time to pursue long-term financial solutions that serve the interests of our many constituents - including patients, customers, employees, creditors, and shareholders". REVA went into a voluntary suspension on 20 February when it was trading at 17 cents.
Rio Tinto Limited (RIO):
Rio Tinto could consider increasing iron ore supply in a bid to shore up the market in the wake of the Vale dam disaster in Brazil, according to reports. According to Bloomberg, the miner has ruled out any short-term increase in output while it waits to evaluate the longer-term effects, particularly on high-grade ores. Rio is watching the impact of regulatory actions in Brazil for any medium-term effects that could justify a response, chief Jean-Sebastien Jacques said in an interview with Bloomberg TV in Beijing on Saturday. The iron ore price has rallied strongly since the Vale disaster in January but pulled back last week after the miner received approval from a Brazilian court to recommence mining at one of its operations.
Ruralco Holdings Ltd (RHL):
On Friday last week with the ACCC kicked off its merger review process of the proposed acquisition by Canadian agribusiness giant Nutrien. The regulator set a closing date for submissions of April 5 and a provisional date for the announcement of a final decision or statement of issues of June 13. There are less than a handful of towns with only two shopfront rural merchandise outlets and there remains a healthy presence from independents and few barriers to entry. Elders had the benefit of being able to offer tax concessional scrip for Ruralco but on March 14 slipped out an earnings downgrade well after market close. Its shares are down close to 8 per cent since the Nutrien bid was announced. Elders chief Mark Allison can at least channel his frustration at being gazzumped by the Canadians into his now infamous folk music sideline. Though shareholders will hope there aren't parallels to be drawn from one of his recent album titles, Schizophrenic Dreamtime.
Westpac Banking Corp (WBC):
Westpac has trimmed its cash earnings for the first half of 2019 by $260 million as it continues to remediate customers. In a note to the market today, it said approximately half of the estimated $260m provision related to its financial advice business while the remainder related to its business and consumer banking arm. But the provisions exclude any allowance for refunds for refunds for to customers of authorised representatives which are still being determined, and flagged to be released in its first half results. This latest hit comes after a $118m hit in the 2017 full year, and $281 last year. “As part of our ‘get it right put it right’ initiative we are determined to fix these issues and stop these errors occurring again,” chief Brian Hartzer said. “We will continue to review our products and services to ensure they deliver the right outcomes for customers, and if necessary, make further provisions.”
Woodside Petroleum Limited (WPL):
Energy producer Woodside Petroleum has evacuated its Pluto and North West Shelf LNG production plants ahead as Tropical Cyclone Veronica makes its way closer to the coast of the Pilbara. According to the Bureau of Meteorology, the cyclone is expected to waken further as it tracks westwards, with conditions already eased at Port Hedland. Woodside said it had evaculated all personell from its offshore production platforms off WA and was operating the North West Shelf and Pluto LNG plants on skeleton staff. “Once the immediate risks have passed, Woodside’s focus will remain the ongoing welfare of our people, their families and our communities, and the safe return to full operations of our production facilities,” the company told Reuters.
(Source: AIMS)
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