INVESTMENTS

$24b Newcrest bid not enough

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 16 : 7-Feb-23

Investors Mutual portfolio manager Tim Wood says the acquisition of Newcrest Mining by Newmont Corporation makes sense, and there is the potential for a counter-bid. However, Wood contends that Newmont’s offer of 0.38 of its shares for every Newcrest share is insufficient; he adds that the bid is also opportunistic, given that Newcrest does not have a permanent CEO at present. Meanwhile, Newmont president Tom Palmer says the US-based gold producer believes that the proposed $24.4bn merger is a "powerful value proposition" for the two companies’ shareholders, employees and the communities in which they operate.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, NEWMONT CORPORATION, INVESTORS MUTUAL LIMITED

Cochlear takes long-term view on China

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Original article by Jared Lynch
The Australian – Page: 15 : 23-Feb-22

Hearing implant maker Cochlear has posted a 2021-22 interim net profit of $169.3m, which is 28 per cent lower than previously. However, its underlying net profit rose 26 per cent to $158m and revenue was 10 per cent higher at $815.3m. Shareholders will receive an interim dividend of $1.55 per share, which is 35 per cent higher than previously. Meanwhile, CEO Dig Howitt says the ongoing tensions between Australia and China will not affect Cochlear’s investment plans in China; the company is about to commission a $50m manufacturing plant in China, and Howitt says it is committed to China for the long-term.

CORPORATES
COCHLEAR LIMITED – ASX COH

Woodside closes GIP Pluto deal

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Original article by Matt Bell
The Australian – Page: 15 : 19-Jan-22

Woodside Petroleum has completed a deal to sell a stake in the Pluto LNG plant to US-based Global Infrastructure Partners. The $4.9bn deal for GIP to buy a 49 per cent stake in the Pluto LNG Train 2 joint venture had been announced in November. The new processing unit at the Pluto project is expected to cost $US5.6bn ($7.8bn) in total, with shipments slated to begin in 2026. Jack Bertolus of climate shareholder action group Market Forces has criticised National Australia Bank for heading a consortium of 18 banks that will provide lending to GIP for the project.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, GLOBAL INFRASTRUCTURE PARTNERS, MARKET FORCES

Activists target Adani as first coal leaves Carmichael

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Original article by Mark Ludlow
The Australian Financial Review – Page: 9 : 1-Dec-21

The first shipment of thermal coal from Adani’s controversial Carmichael mine in Queensland is expected to leave the Abbot Point terminal within weeks. The India-based company, whose Australian mining division trades as Bravus Mining & Resources, has begun test runs on the 206km rail link from the mine to Abbot Point. However, anti-coal activists have been targeting the rail link ahead of the first shipment, prompting Bravus to urge the state government to introduce harsher penalties for activists whose conduct puts themselves and others at risk.

CORPORATES
ADANI ENTERPRISES LIMITED, BRAVUS MINING AND RESOURCES

ACCC green-lights Afterpay megadeal

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Original article by James Eyers, Jonathan Shapiro
The Australian Financial Review – Page: 20 : 6-Nov-21

The Australian Competition & Consumer Commission has advised that it will not oppose the acquisition of ‘buy now, pay later’ provider Afterpay by US-based Square. The proposed $39bn deal will now be put to a virtual special meeting of Afterpay’s shareholders on 6 December, and chair Elana Rubin has urged them to support the transaction. The deal has also been approved by US antitrust regulators, and it is expected to be cleared by the Foreign Investment Review Board ahead of the shareholders’ meeting.

CORPORATES
AFTERPAY LIMITED – ASX APT, SQUARE INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Origin pockets $2b for clean energy plans

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Original article by Elouise Fowler
The Australian Financial Review – Page: 13 & 18 : 26-Oct-21

Origin Energy has reduced its stake in the Australia Pacific LNG project to 27.5 per cent after striking a $2.12bn deal with EIG Global Energy Partners. The private equity group will acquire a 10 per cent stake in the project; EIG CEO R. Blair Thomas says the deal reflects the importance of LNG as a "critical enabler" of the transition to clean energy. Origin Energy has signalled that some of the expected net proceeds of $2bn from the deal may be reinvested in clean energy and storage projects, in addition to reducing debt.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, EIG GLOBAL ENERGY PARTNERS

Australian miners brace for fallout after Guinea coup

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Original article by Peter Ker
The Australian Financial Review – Page: 14 & 19 : 7-Sep-21

Alcoa of Australia has advised that it is monitoring the situation in Guinea, amid reports of a coup in the West African nation. Alumina, Alcoa and Rio Tinto have bauxite mining interests in Guinea, while Rio has two iron ore mining leases. Merriden Varrall from KPMG has warned of growing geopolitical stability in many nations, and that West African nations are becoming increasingly vulnerable to terrorism. However, Perseus Mining MD Jeff Quartermain says not all nations in the region are beset with problems, with Perseus operating gold mines in Ghana and Cote d’Ivoire. He notes that it has enjoyed a record year on the back of its operations in the two countries.

CORPORATES
ALCOA OF AUSTRALIA LIMITED, ALCOA INCORPORATED, RIO TINTO LIMITED – ASX RIO, PERSEUS MINING LIMITED – ASX PRU, KPMG AUSTRALIA PTY LTD

BHP flags improved offer for Noront

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Original article by Nick Evans
The Australian – Page: 16 : 2-Sep-21

The board of Canadian nickel miner Noront Resources has noted that Andrew Forrest’s Wyloo Metals has not yet made a binding offer for the company, and it may never make such an offer. Noront is continuing to back the $C325m ($351.5m) takeover bid from BHP, arguing that is the only binding offer that has been made. BHP’s bid values Noront at $C0.55 per share, and the resources group has not ruled out matching or topping Wyloo’s non-binding offer of $C0.70 a share.

CORPORATES
NORONT RESOURCES LIMITED, BHP GROUP LIMITED – ASX BHP, WYLOO METALS PTY LTD

Cashed-up Forrest trumps BHP in nickel bidding war

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Original article by Brad Thompson, Peter Ker
The Australian Financial Review – Page: 12 & 16 : 1-Sep-21

Andrew Forrest’s Wyloo Metals has increased its takeover bid for Canadian nickel explorer Noront Resources to $C0.70 per share. Wyloo had initially offered just $C0.315 per share, before BHP upped the ante with an offer of $C0.55 per share. Wyloo holds a stake of about 25 per cent in Noront, although this could be increased to 37 per cent via a convertible loan. Forrest has indicated that Noront could potentially remain a listed company if Wyloo’s takeover bid succeeds.

CORPORATES
WYLOO METALS PTY LTD, NORONT RESOURCES LIMITED, BHP GROUP LIMITED – ASX BHP

China’s new front in the trade war with Australia – Africa

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Original article by Ian Verrender
abc.net au – Page: Online : 5-Jul-21

China is by far the biggest lender to Africa, with one of its more controversial strategies involving handouts being given in exchange for stakes in long-term mining projects where Chinese-government-owned firms take all the profits. It is estimated that China struck $US164 billion ($218 billion) worth of such deals across Africa in the four years to 2018, with the Natural Resource Governance Institute finding they deliver much more benefit to China than the host country. By increasing its influence in potentially iron ore-rich countries like Guinea and the Republic of Congo, China can reduce its reliance on Australia for iron ore.

CORPORATES
NATIONAL RESOURCE GOVERNANCE INSTITUTE, RIO TINTO LIMITED – ASX RIO