The high-powered board of the James Packer-backed Crown Resorts says the casino company is facing a “deceitful campaign” aimed at damaging its reputation and that reports linking it to -Chinese crime gangs are “misleading”. Executive chairman John -Alexander and the board, which includes former Liberal communications minister Helen Coonan, former AFL boss Andrew Demetriou, former Qantas boss Geoff Dixon and millionaire adman Harold Mitchell, have signed an open letter — published in a full-page advertisement in news-papers across Australia today — that they say sets the record straight on recent allegations made about the company.“As a board, we are extremely concerned for our staff, shareholders and other stakeholders, as much as this unbalanced and -sensationalised reporting is based on unsubstantiated allegations, exaggerations, unsupported connections and outright falsehoods,” the letter reads.
Downer EDI Ltd (DOW):
Downer has estimated losses from its joint wind farm project at $45 million before tax, to be recognised its its upcoming results. Earlier this year, Downer’s German partner in the project, with whom it shares joint liability, went into administration, but secured interim funding to focus on markets including Australia. Today, Downer estimated total losses in relation to Downer’s obligation to finish the project to be $45m before tax, or $31.5m after tax - including the cost to complete and contingency relating to construction, performance and liquidated damages. That loss is set to cut into its profit for the year, last guided at $352m in May, but Downer said there had been no other issues since that would negatively impact that result.“We have reviewed and adjusted our risk management processes, particularly around joint and several liability, following the Murra Warra experience and we remain committed to building on our leading position in renewable energy,” chief executive Grant Fenn told the market.
IPH Ltd (IPH), Xenith IP Group Ltd (XIP):
The mega-merger of intellectual property firms IPH and Xenith has passed the final hurdle, and is set to be implemented later this month. IPH proposed to buy Xenith via a scheme of arrangement for $1.28 cash and 0.1261 shares, worth $191 million at the offer date on April 5. The Federal Court approved the tie-up after shareholders passed the deal last week, and the scheme is now legally effective and set to be implemented on August 15.
Northern Star Resources Ltd (NST):
Investors clearly didn’t like Northern Star Resource’s trading update this morning. Shares have dropped 10 per cent early to a 2-week low of $11.75, just two weeks after shares hit a record high of $14.05. In an update to the market this morning, Northern Star said it saw FY20 gold production of 800,000 to 900,000 ounces at an all-in sustaining cost of $1,200 to $1,300 per ounce. The drop in gold prices overnight will likely also be weighing on the stock - prices fell as much as 1pc intraday to low s of $US1415.87.
Nufarm Ltd (NUF):
Shares in Nufarm have jumped by 6 per cent to a three-month high, despite warning of a drop in profit for the year. The agricultural chemicals company this morning trimmed its earnings expectations by as much as $50m, citing flooding in North America and continued dry conditions across the east coast of Australia. But investors are seemingly more concerned with its $97.5 millon investment from strategic partner Sumitomo. The Japanese business group has been associated with Nufarm since 2009, and today backed the company through a preference security placement at $5.85 per share.
P2P Transport Ltd (P2P):
P2P Transport, owner of Black & White Cabs and Yellow Cabs, is speeding ahead in Thursday’s trade after impressing in its quarterly results. Shares in the company soared by 46 per cent to 16c, after it shared results in line with its previous guidance, and hinted at new initatives from its ongoing strategic review. For the June quarter, P2P posted revenue of $19.75 million, up 22pc on the previous quarter, to take underlying earnings to $5.63 million for the year - in line with guidance of between $5.6m to $5.7m. “It is pleasing to see an improvement in the cash position of P2P and it is expected that there will be further improvements from the strategic review, increased operational efficiencies and business integration,” chief Greg Webb told the market.
Qantas Airways Ltd (QAN):
Qantas has stressed it will remain a passive investor if it increases its Alliance Aviation stake, in an attempt to quell concerns from the ACCC. In a statement to the market this morning, Qantas said it invested in Alliance because it was a well-managed business and was not seeking any management control or board seat.“We do not believe there is any evidence of a lessening of competition as a result of our minority stake, nor any reasonable prospect that there will be. To the contrary, Alliance Aviation has extended the services it offers to the market in recent months,” it said. “Qantas has no plans to decrease its holding in Alliance.” The airline said it would continue to cooperate fully with the ACCC’s inquiries.
Rio Tinto Ltd (RIO):
The surging iron ore price has delivered for Rio Tinto shareholders, despite ongoing operational difficulties, with the iron ore major declaring a special dividend to return some of the iron ore cash rolling into its coffers to shareholders. Rio delivered its half-year results this afternoon, offering up an interim dividend of $US1.51 a share, well below analyst consensus, which put its first-half dividend at about $US1.78 a share. But the company said it will also return an additional $US1 billion to shareholders through a US61c a share special dividend. The company booked a first-half profit of $US10.25 billion before interest, tax, depreciation and amortisation, with after-tax earnings of $US4.1 billion and an underlying after-tax profit of $US4.9 billion. Rio Tinto’s iron ore division generated underlying earnings before interest, taxation, depreciation and amortisation of $US7.5 billion, up 33 per cent from 2018. The company expects the iron ore business to deliver between 320 and 330 million tonnes this year at a cash cost of $US14- 15 per tonne. Analysts consensus estimates tipped iron ore EBITDA at $US7.4 billion, and underlying group EBITDA at just over $US10 billion for the year. Rio has already returned $US8.2 billion to shareholders in the form of dividends and buybacks, and the company’s dividend policy is to pay 40 to 60 per cent of earnings. But with major shareholder Chinalco approaching the maximum 15 per cent stake in Rio mandated by the Australian government, and having already pushed back against extensions of Rio’s buyback program at its annual shareholder meeting, analysts suggest further buybacks are unlikely. Rio’s half-year results were also scarred by a writedown of its Oyu Tolgoi mine in Mongolia, after minority partner in the mine, Turquoise Hill Resources, recorded a $US596.9 million ($873 million) impairment of the asset in its financial results, released overnight. Rio booked a $US800 million impairment on Oyu Tolgoi.
Wellcom Group Ltd (WLL):
Wellcom investors have cheered its $265 million takeover approach from South Korea’s Innocean, with shares soaring on return to trade today. Overnight, the $6.70 a share cash bid was lobbed for the Melbourne marketing firm, and today shares are higher by 29 per cent to $6.76, after touching all-time highs of $6.80. Wellcom, founded in 2000, is a leading global creative production agency specialising in digital marketing, omnichannel content production and marketing technology. It has what it claims to be a unique position in digital technology between the “big idea” advertising agencies and the technical delivery of advertising collateral. The offer follows a recent frenzy of acquisition activity in the industry driven by social media, big data, advances in analytic tools and cognitive technologies to change how advertisers and companies predict, influence and respond to customer behaviour.
Zip Co Ltd (Z1P):
Zip Co has added local variety chain Big W to its list of merchants, set to go live before the end of the year. In an update to the market, the buy now, pay later provider said the partnership was key in its vision of joining with the country’s largest retailers.“We believe Zip will be a great fit for Big W, providing their customers with a better way to pay for their everyday products and purchases,” managing director and chief Larry Diamond told the market.
(Source: AIMS)
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