Iluka Resources has dived 8.2 per cent to a 5-week low of $10.16 after a disappointing second quarter production report. It said mineral sands output fell 11pc on-year to 251,300 tonnes, with zircon sales down 6pc on year to 72.700 tonnes. Zircon sales will be second-half weighted and sales may be lower than production, with producer inventories expected to rise over 2H.
Carnarvon Petroleum Limited (CVN):
Carnarvon Petroleum is tapping the market for $84 million to fund the share of the costs for its Dorado project that it owns with a Santos. Working on the raise is JPMorgan and Euroz Securities. Carnavon plans to raise $79m through an institution al placement and $5 million though a share purchase plan.
Pacific Energy Limited (PEA):
QIC has swooped on Perth-based power company Pacific Energy in a deal valuing the company at $422 million. Pacific Energy today told the market it was backing the proposal from QIC Private Capital for acquisition via a Scheme of Arrangement. Under the deal, shareholders in the company will receive 97.5c per share in cash, comprising of 96c per share to be paid by QIC and a final 1.5c dividend from the company. “The proposal delivers a significant premium for shareholders and recognises the position Pacific Energy has built as the leading Build-OwnOperate power supplier to the mining industry and remote townships in Western Australia as well as the emerging opportunities from our growing east coast presence through Pacific Energy Victorian Hydro and NovaPower,” chairman Cliff Lawrenson said.
Beach Energy Ltd (BPT):
Beach Energy has posted record annual production of 29.4 MMboe for the financial year, and boasted reaching net cash position two years ahead of expectations. Releasing its June quarter results today, Beach said it had produced 6.97 MMboe in the fourth quarter thanks to strength in its Western Flank operations, in line with the previous quarter after its sale of a 40pc stake in Otway. Analysts had been expecting 28 to 29 MMboe for the full year. “The strong free cash flow performance combined with the completion of the Otway Sale saw Beach finish the year in a net cash position — more than two years ahead of initial expectations,” managing director Matt kay said. “This is a strong performance, considering we only completed the Lattice Acquisition less than 18 months ago. It is a testament to our diverse portfolio and our dedicated team.”
Evolution Mining Ltd (EVN):
Evolution Mining said fiscal-year gold production was weaker than the year prior, although around the midpoint of guidance, and forecast steady output in the year ahead. The Australian gold miner Wednesday reported gold output of 753,001 troy ounces for the 12 months through June. The company, which produced 801,187 ounces of gold the 12 months prior, had earlier forecast output of between 720,000 and 770,000 ounces. Evolution said it expects to produce between 725,000 and 775,000 ounces in the year through June 2020.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank is trying to lower the barriers to budding share market investors in an effort to drum up new business for the bank. CommSec’s new Pocket app will let customers invest as little as $50 into baskets of themed shares, allowing inexperienced investors to pick areas they like rather than stocks. Most investors currently require a minimum of $500 to enter the share market, which CBA-owned broker CommSec says is one reason only four per cent of Australian adults’ trade online each year. The app charges $2 per trades up to $1,000. “We’ve worked with ASX and ETF (exchange-traded fund) providers to bring down the amount people need to make investing more accessible,” CommSec executive general manager Richard Burns told AAP.
Abacus Property Group (ABP):
Abacus Property Group is tapping the market for $250 million to fund its latest swath of acquisitions, after announcing preliminary profit of 24 cents per share. Announcing its preliminary unaudited FY19 figures this morning, Abacus said it said Funds from Operations were 22.2 cents per security, and declared distribution 18.5c per share, 2.8 per cent higher than the year previous. Alongside its results, the company is raising $250 million to fund its purchase of Australian Unity Office Fund, in consortium with Charter Hall, as well as Self Storage, Church St development in Richmond and a potential Sydney CBD office asset. “Abacus is well advanced on its strategy to transition to a more annuity style, strong asset backed business model. The Equity Raising enables Abacus to accelerate this transition and positions Abacus for future growth beyond the near-term identified opportunities, with low gearing and over $900 million of acquisition capacity,” managing director Steven Sewell said.
St Barbara Ltd (SBM):
St Barbara has posted a decline in gold production for the June quarter, prompting a 4.5 per cent sell-off in its shares today. Lodging its quarterly this morning, the miner said full year production was 362,346 ounces, down from 403,089 ounces in the previous, but said its extension of the Gwalia project remained on schedule. Earlier this week, the company completed its acquisition of Canadian miner Atlantic Gold, integration of which is expected over the next six months. The company said its guidance for the acquired company would be released with its September quarterly, but forecast Gwalia production between 200,000 and 210,000 ounces and Simberi production between 110,00 and 125,000 ounces.
BHP Group Ltd (BHP):
Late yesterday BHP announced a five-year $400 million climate investment program dedicated to the "decarbonisation" of its operations. BHP shares are up 0.5 per cent to $41.78 today. Shares recently reached a high of $42.08. Chief executive Andrew McKenzie said, "We require a considered and orderly transition to a lower carbon world, in which resource companies like BHP have both critical expertise and a key role to play."