Author: roymorgansocial

Sandfire bets on new Botswana mine

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 2-Dec-20

Sandfire Resources will proceed with the development its T3 copper mine in Botswana, with production slated to commence in early 2023. Sandfire will initially produce about 30,000 ounces of a gold a year at T3, which could increase to at least 50,000 tonnes annually via the nearby A4 deposit. The T3 project will offset the looming loss of copper production from Sandfire’s ageing DeGrussa mine in Western Australia, which is nearing the end of its mine life. However, Sandfire plans to begin gold production at DeGrussa.

CORPORATES
SANDFIRE RESOURCES LIMITED – ASX SFR

Labor willing to engage on IR changes: Burke

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Original article by Phillip Coorey
The Australian Financial Review – Page: 10 : 27-Nov-20

Shadow employment minister Tony Burke says Labor is likely to pass the federal government’s industrial relations omnibus bill if the proposed reforms are based on those agreed upon by the Coalition’s working groups. However, Labor will refer the legislation to a Senate committee, which ensure that the bill is not debated and voted upon before Parliament rises for the year. The government has given indications that the reforms will include changes to the Fair Work Act’s ‘better-off-overall-test’, although reinstating the ‘no disadvantage test’ will be on its agenda.

CORPORATES
AUSTRALIAN LABOR PARTY

Bega cooks up Aussie food champ

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Original article by Simon Evans
The Australian Financial Review – Page: 1 & 28 : 27-Nov-20

Bega Cheese’s executive chairman Barry Irvin expects to achieve synergies of about $41m soon after the deal to acquire Lion Dairy & Drinks from Kirin Holdings is completed in early 2021. Bega will raise $401m from investors to partially finance the $534m deal, with new shares to be offered at $4.60 apiece. The acquisition will add milk and yoghurt brands such as Pura, Dairy Farmers and Yoplait to Bega’s portfolio, which includes non-dairy products such as Vegemite and peanut butter. The federal government blocked the sale of Lion to China Mengniu Dairy in August, deeming that the $600m deal was not in the national interest.

CORPORATES
BEGA CHEESE LIMITED – ASX BGA, LION-DAIRY AND DRINKS PTY LTD, KIRIN HOLDINGS COMPANY LIMITED, CHINA MENGNIU DAIRY COMPANY LIMITED

Class actions plateau at new normal

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Original article by Michael Pelly
The Australian Financial Review – Page: 38 : 27-Nov-20

Law firm King & Wood Mallesons has released its latest annual report on class actions, reporting that 55 were filed in 2019-20, while more than 35 class action settlements were approved by the courts. Fourteen of the 2019-20 class actions related to financial products, while 13 related to securities. KWM contends that companies are being pushed prematurely into liquidation as a result of what it describes as "multiple and expensive claims" against them, while it suggests that there could be a decline in the number of class actions that are supported by litigation funders.

CORPORATES
KING AND WOOD MALLESONS

Extra power locked in for summer

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 26 : 27-Nov-20

The Australian Energy Market Operator has released its ‘summer readiness’ plan for the power market. AEMO has contracted over 1,900 megawatts of extra emergency power generating capacity for the 2020-21 summer peak, although heatwave and bushfire conditions are not expected to be as severe as in 2019-20. AEMO COO Michael Gatt notes that heatwaves and bushfires remain a "prominent risk", while predicted El Nino weather patterns means there is an increased risk of tropical cyclones and flooding.

CORPORATES
AUSTRALIAN ENERGY MARKET OPERATOR LIMITED

Telstra fined $50m for unconscionable sales

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Original article by James Fernyhough
The Australian Financial Review – Page: 25 : 27-Nov-20

Telstra has agreed to pay a $50 million penalty over the sale of mobile phone plans to 108 Indigenous consumers between 2016 and 2018. The sales were made at five Telstra stores in Northern Territory, South Australia and Western Australia, with the Australian Competition and Consumer Commission stating the sales were made despite the telco knowing that the Indigenous consumers did not understand the product and could not afford it. The ACCC has described Telstra’s action as "unconscionable", while it noted the customers had been left with average debts of $7,400.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Thais that bind: secret mission ends Aussie’s torment

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Original article by Ben Packham, Richard Ferguson
The Australian – Page: 1 & 11 : 27-Nov-20

It has been revealed that Australia’s director-general of national intelligence Nick Warner led a secret, year-long effort to secure the release of Melbourne University lecturer Kylie Moore-Gilbert after she had spent over 800 days in Iranian jails. Moore-Gilbert was released in a prisoner swap deal that involved Thailand releasing three Iranian terrorists; Moore-Gilbert had been serving a 10-year sentence on trumped-up espionage charges. Warner had been Australia’s ambassador in Iran during the mid-1990s and used his connections in Iran to help secure her release. Australia’s ambassador to Thailand, Allan McKinnon, lobbied that nation’s authorities to release the three Iranian terrorists.

CORPORATES
UNIVERSITY OF MELBOURNE

Lynas refuses to risk staff in virus hot spot

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Original article by Brad Thompson
The Australian Financial Review – Page: 28 : 27-Nov-20

The US military is providing funding for a rare earths processing plant to be built in Texas under a partnership between Australian-listed rare earths producer Lynas Corporation and US-based Blue Line. The Pentagon wants the plant to be built to end to China’s dominance of "commercial-scale" separation of heavy rare earths materials. However, Lynas MD Amanda Lacaze has told its AGM that the plant could be delayed as it will not built without the involvement of its engineers, and she will not send anyone to Texas while COVID-19 cases in the state are so high. It is estimated that the plant will cost around $US50 million ($68 million).

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, BLUE LINE

Quotas plan for survival of broadcasters

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Original article by Richard Ferguson, Geoff Chambers
The Australian – Page: 8 : 27-Nov-20

The federal government will release a green paper on media industry reform on 27 November. Amongst other things, the reforms would introduce local content quotas for subscription video-on-demand providers, as well as the ABC and SBS. TV networks would also be offered a new broadcasting licence that has less regulation, in return for surrendering some of their frequency spectrum. This spectrum would then be auctioned, with the proceeds used for two new funds that will help to finance locally-produced news and drama content.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND COMMUNICATIONS

Roy Morgan Business Confidence up 10.4pts to 109.1 in November – Confidence is now above 100 in four States – NSW, QLD, WA & SA

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Original article by Roy Morgan
Market Research Update – Page: Online : 27-Nov-20

In November 2020 Roy Morgan Business Confidence jumped 10.4pts (+10.5%) to 109.1, the highest monthly reading since September 2019 (110.6). Business Confidence has now increased by a record 23.5pts (+27.5%) over the last two months. It is now 0.7pts higher than in November 2019 (108.4), but still 4.2pts below the long-term average of 113.3. An increasing majority of businesses, 57.9% (up 5.5ppts), said the next 12 months is a ‘good time to invest in growing the business’, the highest figure for this indicator since January 2014. On a State-based level Business Confidence is now in positive territory above 100 in four States. Confidence is highest in South Australia at 120.2 although it should be noted most interviewing was completed before the brief State-wide shutdown. Business Confidence is also above average in Western Australia (up 6pts to 114.4), New South Wales (up 8.4pts to 113.8) and jumped strongly in Queensland to 109.3 (up 18.8pts). However, Business Confidence in Victoria (97.8) and Tasmania (88.9) is now well below the national average.

CORPORATES
ROY MORGAN LIMITED