BHP has establised a tailings task force to progress its investigation of new technologies to mitigate current dam risks and elimiate future risks after its Samarco Dam disaster in 2015. In an investor briefing lodged to the market this morning, BHP said Vale’s Brumadinho failure earlier this year had “strengthed resolve” on dam safety. “We are establishing a dedicated Tailings Task Force to drive enhanced focus on internal dam management plus support the development of international best practice,” the company said. BHP said its dam risk review identified no immediate concerns regarding dam integrity but that Dam Safety Reviews had also been undertaken.
Graincorp Ltd (GNC):
GrainCorp has pinned the future of its core storage and handling business on a 10-year insurance deal with Aon that is designed to smooth cash flow and earnings in the face of volatility in eastern Australian winter harvests. Under the insurance derivative deal announced on Friday, GrainCorp will receive up $80 million a year in insurance top-ups when the grain harvest in Queensland, NSW and Victoria slips below a 15.3 million tonne threshold. In years when production tops 19.3 million tonnes, GrainCorp instead will pay up to $70 million to the insurer.
Lynas Corporation Ltd (LYC):
Lynas chief Amanda Lacaze has capitalised on a speaking opportunity to a US specialty metals conference overnight, stressing the company’s independence from China amid fears of a curb in Chinese exports of the minerals to the US. China last month warned it could restrict the export of rare earths to US in another trade war blow, prompting President Donald Trump to pledge to find suppliers domestically and elsewhere, what could be a boon for Lynas, the largest rare earths miner outside of China. “We are truly independent from China,” Ms Lacaze told the conference. “We aim to remain a leader in the rare earths market. There will be significant growth outside China so long as customers are confident in supply.”
Magellan Financial Group Ltd (MFG):
Magellan Financial Group has reported net inflows of $264 million for May, taking its total funds under management to $82.8 billion versus $83.2bn at the end of April. The fund had net retail inflows of $146 million for the month, and net institutional inflows of $118 million.
Syrah Resources Ltd (SYR):
Graphite producer Syrah Resources has revised its production guidance lower for the second quarter, citing delayed results from its production improvement plan. The miner trimmed its production forecasts to between 45kt and 50kt, from earlier expectations of between 50kt and 55kt. It said recovery and product split was expected to be in line with the first quarter, but “results from the plan were expected to accelerate from June into the third quarter”.
Vicinity Centres (VCX):
Shopping centre operator Vicinity Centres has flagged a decline in its portfolio valuation, hit by declines in its Western Australian centres and pre-development centres. In a note to the market this morning, Vicinity shared detail of an estimated 1.3 per cent decline in its shopping centre portfolio over the past six months, a $202 million slip. Managing director and chief Grant Kelley reassured investors their flagship Chadstone site, as well as its premium CBD assets and DFO outlet centres, were outperforming while its assets in WA were dragging. “The Flagship portfolio is forecast to increase in value by $86 million or 1.2pc in the period driven by income growth, with capitalisation rates remaining unchanged on an individual asset basis,” he said. The announcement comes ahead of its annual results in August, as a means to facilitate an opportunity to issue bonds in debt capital markets. “A potential bond issuance will extend our weighted average debt maturity, decrease our weighting to bank debt, and with the recent material fall in interest rates, enable us to take advantage of lower borrowing costs,” Mr Kelley said.
Viva Leisure Limited (VVA):
Viva Leisure has begun trading on the ASX, Australia’s first dedicated health club to do so, after raising $20 million. Shares were trading at $1.10 in its first half hour of trade, in light volume and at a slight premium to its IPO price of $1. Viva Leisure operates 33 gyms in NSW and ACT, mostly under the brands Club Lime and Hiit Republic, and plans to expand to 40 locations by the end of the month. In the half-year that ended December 31 Viva Leisure made $1.3 million in profit.
WiseTech Global Ltd (WTC):
Logistics software company Wisetech told investors any changes to global trade regulations would be a "tailwind" for its business, as its shares soared to fresh highs after it reaffirmed guidance. Shares in one of Australia's most hyped tech companies rose 5.8 per cent to a record high of $26.29 on Thursday, after it released an investor presentation to the market. Wisetech reaffirmed guidance for revenue growth of up to 53 per cent to $339 million for the 2019 financial year and earnings (before interest, tax, depreciation and amortisation) of up to $105 million.
Woolworths Group Ltd (WOW):
Meal kit provider Marley Spoon is teaming up with Woolworths in a deal worth $30 million to grow its brands in the local market. The agreement includes a $30.5m investment by Woolworths, comprising of debt and equity, and ties the two parties to grow the brand and implement operational synergies for an initial term of five years. The issues of shares to Woolworths will result in the supermarket giant owning approximately 9 per cent of Marley Spoon, with a convertible note structured to allow Woolworths to participate in the growth of the business. “As grocery spending shifts to online, home-delivered meal kits will play an increasingly large role in helping consumers create healthy weeknight meals and save time. We see this partnership delivering important benefits to both Marley Spoon and Woolworths, with both parties incentivised to grow Marley Spoon’s business in Australia,” Marley Spoon chief Fabian Siegel told the market.
（Source: AIMS）
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