Billion dollar hit for NAB after ASIC action

Original article by James Fernyhough
The Australian Financial Review – Page: 15 & 18 : 3-Oct-19

National Australia Bank has advised that its cash earnings for the second half of 2018-19 will fall by about $1.23bn, while its full-year net profit will fall by $1.18bn. This has been attributed to an additional after-tax charge of $832m for its customer remediation program, as well as a change to its software capitalisation policy. NAB’s total provisions for customer remediation in the wake of the fees-for-no-service scandal has now topped $2bn. NAB will release its full-year results on 7 November.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

Woolies thrives but Banducci stays cautious

Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 30-Aug-19

Groceries and liquor giant Woolworths Group has posted a 2018-19 net profit of $2.693bn, which is 56.1 per cent higher than previously. Its profit from continuing operations was down per cent at $1.49bn following the sale of its petrol division, but group sales rose 5.3 per cent to $59.98bn. Woolworths’ core Australian supermarkets division recorded earnings and sales growth of 5.7 per cent and 5.3 per cent respectively. Big W’s sales were 6.5 per cent higher, although the discount department store chain posted an EBIT loss of $85m.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, BIG W DISCOUNT STORES, ENDEAVOUR DRINKS, DAN MURPHY’S, COLES GROUP LIMITED – ASX COL

Competition no worry for Lynas

Original article by Nick Evans
The Australian – Page: 20 : 30-Aug-19

Rare earths miner Lynas Corporation has posted a 2018-19 net profit of $80m, compared with $53.1m previously. However, EBITDA fell to $100.7m and revenue was also lower at $363.5m. Meanwhile, CEO Amanda Lacaze is not unduly concerned by the mining sector’s growing interest in rare earths, arguing that increased competition could benefit Lynas. She is also optimistic that the Malaysian Government will renew the company’s full operating licence after agreeing to extend its current licence by six months.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, NORTHERN MINERALS LIMITED – ASX NTU, ILUKA RESOURCES LIMITED – ASX ILU

Nickel group eyes better off-take deals

Original article by Brad Thompson
The Australian Financial Review – Page: 29 : 30-Aug-19

Independence Group has posted a 2018-19 net profit of $76.1m, which is 44 per cent higher than previously. The nickel and gold producer’s revenue rose by two per cent to $792.9m, while shareholders will receive a final dividend of $0.08 per share. Independence Group has allocated $66m for exploration in 2019-20, with the aim of extending the mine life of its Nova nickel project and finding new deposits in Western Australia’s Fraser Range.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, GLENCORE PLC, NICKEL WEST, BHP GROUP LIMITED – ASX BHP, ANGLOGOLD ASHANTI LIMITED – ASX AGG, RBC CAPITAL MARKETS

Macquarie’s $1.6bn capital raise

Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 29-Aug-19

Macquarie Group has advised that its profit for the six months to 30 September will be about 10 per cent higher than the $1.3bn result for the same period in 2018. Macquarie posted a record profit of $2.98bn for the year to 31 March, and Jonathan Mott of UBS has forecast a profit of $3.04bn for fiscal 2020. Meanwhile, Macquarie is seeking to raise $1bn from institutional investors and up to $600m from retail investors via a share purchase plan. Most of the proceeds will be invested in assets such renewable energy, technology and infrastructure.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, MOODY’S INVESTORS SERVICE INCORPORATED, CITIGROUP PTY LTD

OZ confident of bouncing back from trade war hit

Original article by Peter Ker
The Australian Financial Review – Page: 21 : 29-Aug-19

Copper and gold producer OZ Minerals has posted a 2019 interim net profit of $43.9m, which is 65 per cent lower than previously. The result was marred by factors such as a fall in the copper price, lower sales volumes and increased investment in exploration. OZ has ramped up investment in its Carrapateena mine, which is slated to commence production of copper concentrate in the final quarter of 2019. OZ shareholders will receive an interim dividend of $0.08 per share.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, SANDFIRE RESOURCES NL – ASX SFR

Northern Star buys explorer, eyes Superpit

Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 28-Aug-19

Gold miner Northern Star Resources has posted a 2018-19 net profit of $154.7m, down from $194.1m previously, while EBITDA was eight per cent higher at $479.7m. Meanwhile, Northern Star Resources has offered $0.33 per share to take full control of Echo Resources, in which it has a 21.7 per cent stake. Echo’s assets include the Yandal gold project in Western Australia and the Bronzewing processing plant. Northern Star Resources has also indicated that it may be open to bidding for the Kalgoorlie Superpit.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, ECHO RESOURCES LIMITED – ASX EAR, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION

Forrest reaps $1bn in dividends

Original article by John Stensholt, Nick Evans
The Australian – Page: 17 & 20 : 27-Aug-19

Fortescue Metals Group has posted a record net profit of $US3.2bn ($4.7bn) and revenue of $US10bn for 2018-19. The pure-play iron ore miner’s net debt was $US2.1bn at the end of the financial year, while its cash holdings totalled $US1.9bn. Shareholders will receive a final dividend of $0.24 per share and a full-year payout of $1.14 a share. Fortescue chairman Andrew Forrest will be paid $1.24bn in dividends for the full year, including about $261m from the final dividend. Fortescue expects its iron ore shipments for 2019-20 to be within the range of 170-175 million tonnes, at an average price of $US13.25-$US13.75 per tonne.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

FMG’s dilemma as record profit meets price fall

Original article by Peter Ker
The Australian Financial Review – Page: 17 : 26-Aug-19

Fortescue Metals Group is forecast to post a record underlying profit of $US3.03bn ($4.49bn) for 2018-19, following a rally in the iron ore price during the financial year. Some analysts expect the pure-play miner to announce a final dividend on 26 August, despite the recent fall in the iron ore price and the fact that Fortescue’s interim dividend was well within its stated target of paying 50-80 per cent of its net profits in dividends.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, ILUKA RESOURCES LIMITED – ASX ILU

Coles boss bullish as online sales hit $1bn

Original article by Eli Greenblat
The Australian – Page: 19 : 23-Aug-19

Grocery and liquor retailer Coles Group has posted a 2018-19 net profit of $1.434bn, which is 9.1 per cent lower than previously. Earnings from continuing operations were down 8.1 per cent at $1.325bn, and sales fell 1.7 per cent to $38.46bn. Coles’ online sales increased by 30 per cent to $1.1bn, and the division was profitable for the first time in 2018-19. Shareholders will receive a final dividend of $0.24 per share, plus a special dividend of $0.115 a share.

CORPORATES
COLES GROUP LIMITED – ASX COL, COLES ONLINE PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, VINTAGE CELLARS (AUSTRALIA) PTY LTD, LIQUORLAND (AUSTRALIA) PTY LTD, FIRST CHOICE LIQUOR SUPERSTORE, WESFARMERS LIMITED – ASX WES, WOOLWORTHS GROUP LIMITED – ASX WOW, JP MORGAN AUSTRALIA LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD