STRATEGIC PLANNING – AUSTRALIA

Stokes questions merger logic

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Original article by Jemima Whyte
The Australian Financial Review – Page: 16 : 3-Nov-17

Seven West Media will reduce its costs by $A25m via staff cuts, as part of a broader strategy to slash its costs by $A105m over two years. Meanwhile, chairman Kerry Stokes has told shareholders that Seven has not held any merger talks with Fairfax Media or News Corp, and he suggested that merging a TV network with a print media company may offer few synergies. He also said Seven is trialling a combined TV and print newsroom in Perth, which could influence whether Seven pursues mergers or acquisitions in the media sector.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, NETFLIX INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, CGI GLASS LEWIS PTY LTD, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, ENERGY QUEENSLAND, HERBERT SMITH FREEHILLS PTY LTD

BHP enters NBN debate as data demand soars

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 2-Nov-17

BHP Billiton is embracing technology such as automation and telematics, which in turn is increasing the amount of data and bandwidth it uses, says chief technology officer Diane Jurgens. She adds that BHP uses both its own data networks and the national broadband network. Jurgens advocates using fibre-to-the-premises for the NBN, arguing that doing so is an investment for the long-term, as demand for bandwidth is set to increase exponentially. Meanwhile, BHP plans to deploy driverless trains on its Pilbara iron ore rail network, a process that Jurgens says will take at least 12 months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Electric cars drive Fortescue’s lithium push

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Original article by Matt Chambers
The Australian – Page: 17 & 25 : 1-Nov-17

Growing global demand for lithium has prompted pure-play iron ore miner Fortescue Metals Group to diversify by revealing plans to explore tenements near existing lithium deposits in Western Australia. Shares in Australian-listed lithium miners have rallied in recent months, amid rising demand for electric cars and plans by some car makers to phase out traditional petrol-only vehicles. Meanwhile, Richard Coppleson of Bell Potter says lithium could follow the same price trajectory as iron ore in the mid-2000s.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BELL POTTER SECURITIES LIMITED, PILBARA MINERALS LIMITED – ASX PLS, GALAXY RESOURCES LIMITED – ASX GXY, KIDMAN RESOURCES LIMITED – ASX KDR, MINERAL RESOURCES LIMITED – ASX MIN, UBS HOLDINGS PTY LTD, VOLKSWAGEN AG, AUDI AG, DR ING HCF PORSCHE AG, GENERAL MOTORS CORPORATION, FORD MOTOR COMPANY

Economist eyes growth potential

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 26-Oct-17

The global circulation of "The Economist" is about 1.5 million, including just 20,000 in Australia. However, chief marketing officer Michael Brunt is upbeat about the venerable magazine’s prospects in the Australian market, suggesting that it has a potential readership of about one million, based on the characteristics of the magazine’s typical reader. "The Economist" is using an experiential marketing campaign to boost local subscription numbers.

CORPORATES
THE ECONOMIST GROUP

‘Foundations are strong’, says new BHP chairman

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Original article by Darren Gray
The Sydney Morning Herald – Page: Online : 20-Oct-17

Former Amcor CEO Ken MacKenzie addressed BHP Billiton’s AGM in London for the first time in his new role of chairman. He told shareholders that there are some areas in which BHP can increase its focus and improve its operations, but overall the company is very strong. MacKenzie also said BHP is actively seeking to improve its capital allocation processes, noting that this has been somewhat lacking over the last decade.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AMCOR LIMITED – ASX AMC

Chevron drops $400m Bight drilling plans

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 13-Oct-17

Chevron has cited the low price of crude oil for its decision to shelve plans to undertake a four-well drilling program in the Great Australian Bight in 2018. Chevron says it was a commercial decision that was not influenced by factors such as environmental concerns or government policy. Chevron intends to focus on exploration off the coast of Western Australia, where it can utilise its existing infrastructure. BP abandoned plans to drill two wells in the Bight in October 2016, citing similar reasons for its decision.

CORPORATES
CHEVRON CORPORATION, CHEVRON AUSTRALIA PTY LTD, BP PLC, BP AUSTRALIA LIMITED, BEACH ENERGY LIMITED – ASX BPT, STATOIL AS

Westpac takes knife to transaction fees

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 11-Oct-17

Westpac has revised its fees and charges for legacy products that pre-date online banking and reflect an era when most transactions were made in bank branches. Amongst other things, all personal transaction accounts will have a maximum account-keeping fee of $A5 a month, while Westpac will abolish transaction fees on all personal accounts. George Frazis, the head of consumer banking, says Westpac will make further changes to its fees and charges.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Newcrest looks to solar power for Cadia mine

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 9-Oct-17

Soaring power prices have prompted Newcrest Mining to consider installing a solar farm at its Cadia mine in New South Wales. CEO Sandeep Biswas says it has been to both California and Israel to see what technology is available at the moment. He says that given Cadia is expected to be operational for some years, installing a solar farm is a viable option. He notes that there are currently solar farms capable of generating 600 megawatts, whereas Cadia would only require one that produces 150 megawatts.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN

Roy Hill close to achieving lender’s target

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 5-Oct-17

Roy Hill Holdings CEO Barry Fitzgerald says the company’s iron ore project reached its full capacity of 55 million tonnes a year in September. He adds that the mine is on track to meet its 90-day lender’s completion requirements by late 2017. He has downplayed concerns about the Roy Hill mine’s ore grades and purity levels, noting that some initial problems have been overcome. Fitzgerald has also indicated that Roy Hill could introduce driverless trains and autonomous drilling technology to achieve further efficiency gains.

CORPORATES
ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIAN MINING CLUB

Bass gas in Exxon’s frame due to onshore constraint

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Original article by Matt Chambers
The Australian – Page: 20 : 3-Oct-17

The rising price of gas on Australia’s east coast and restrictions on onshore production has prompted renewed exploration activity in Bass Strait. ExxonMobil, Origin Energy and Cooper Energy intend to undertake new drilling programs. ExxonMobil will drill two deepwater wells in the Dory prospect in the offshore Gippsland Basin. The company has previously warned that production at the Longford gas plant will fall in 2018 as its current output is not sustainable.

CORPORATES
EXXONMOBIL CORPORATION, ORIGIN ENERGY LIMITED – ASX ORG, COOPER ENERGY LIMITED – ASX COE, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, LIBERTY PETROLEUM