STRATEGIC PLANNING – AUSTRALIA

Fortescue mulls move into gold, copper, energy

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Original article by Manolo Serapio
The Australian Financial Review – Page: 19 : 28-Sep-17

Fortescue Metals Group CEO Nev Power has revealed that the pure-play iron ore miner is exploring for other minerals in Australia and South America, including gold, copper and lithium. He says Fortescue may further diversify its operations by investing in energy infrastructure projects. Meanwhile, Power expects Chinese demand for iron ore to remain strong, despite pending production cutbacks by some Chinese steel mills. He says demand may rise in regions of China that will not be affected by the production cuts during the winter months.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

AGL refuses to budge on Liddell

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Original article by Angela Macdonald-Smith, Ben Potter
The Australian Financial Review – Page: 1 & 6 : 28-Sep-17

AGL Energy’ chairman Jerry Maycock has told the company’s AGM that selling the Liddell coal-fired power plant would be "challenging", while extending the ageing plant’s life would involve substantial costs. He also ruled out building a new coal-fired plant, arguing that such a plant may ultimately not be competitive as the cost of renewable energy and battery storage technology falls. Meanwhile, AGL CEO Andy Vesey is confident that partially replacing the Liddell plant’s output with renewables will not result in higher electricity prices. He also indicated that the Loy Yang A power station could be shut down ahead of schedule.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, MARKET FORCES

Seven takes Coates from Carlyle in lucky break

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Original article by Carrie LaFrenz, Tess Ingram
The Australian Financial Review – Page: 15 & 20 : 21-Sep-17

Diversified conglomerate Seven Group Holdings will assume full ownership of Coates Hire after securing a deal to buy The Carlyle Group’s stake. Shares in Seven Group closed 9.8 per cent higher at $A12.28 after the $A517m deal was announced on 20 September. Carlyle had considered listing Coates Hire on the sharemarket earlier in 2017, and Seven CEO Ryan Stokes has not ruled out an IPO for the equipment rental firm in the future. The proportion of Seven’s revenue that is derived from industrial services will rise to 70 per cent as a result of the deal.

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, COATES HIRE LIMITED, THE CARLYLE GROUP, CARLYLE ASIA PARTNERS LP, WESTRAC HOLDINGS PTY LTD

BHP hauls coal in long distance mine

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Original article by Matt Chambers
The Australian – Page: 22 : 15-Sep-17

BHP Billiton has completed the process of centralising the major operating roles at its coking and thermal coal mines in Queensland and New South Wales. BHP’s integrated ­remote operating centre in Brisbane employs 212 people who perform functions that were previously undertaken at each mine. In addition to transferring existing staff to the remote hub, BHP has hired about 30 additional employees, with many recruits having a non-mining background.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Health insurers plan cheap policies for youth

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Original article by Andrew Tillett
The Australian Financial Review – Page: 3 : 12-Sep-17

Private Healthcare Australia CEO Rachel David says the private health insurance sector struggles to attract younger members. She was commenting on a proposal that would see younger Australians offered premiums at a discounted rate, with the Federal Government having been briefed about the idea. David does not think that older policy holders would object to the idea, as having more younger members in the system helps to offset the higher cost of older members, who tend to make claims more often.

CORPORATES
PRIVATE HEALTHCARE AUSTRALIA, EVALUATE, AUSTRALIA. DEPT OF HEALTH, AUSTRALIAN LABOR PARTY

Santos to divert gas

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 & 28 : 8-Sep-17

Santos has pre-empted the Federal Government’s decision on triggering the Australian Domestic Gas Security Mechanism by agreeing to redirect 30 petajoules of gas from the Gladstone LNG export project to the domestic market in 2018 and 2019. The LNG buyer that has agreed to accept reduced exports is believed to be either Petronas or Korea Gas Company, which are partners in the GLNG project. Santos also recently struck a deal to supply gas to the Pelican Point power station in South Australia. Wood Mackenzie estimates that the latest deal will ensure that the gas shortfall on the east coast will be minimal in 2018.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, PETRONAS GAS BHD, KOREA GAS CORPORATION, WOOD MACKENZIE, TOTAL SA, SHELL COMPANY OF AUSTRALIA LIMITED, QUEENSLAND CURTIS LNG PTY LTD, ENGIE SA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

HSBC joins mortgage war with 3.6pc home loan

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Original article by Glenda Korporaal
The Australian – Page: 19 & 22 : 1-Sep-17

HSBC Australia CEO Martin Tricaud says the international bank intends to ramp up its local presence, with plans to expand its branch network from 31 outlets to 47 over the next two years. HSBC also aims to increase its Australian home loans business, with owner-occupiers who take out a mortgage before the end of 2017 to be offered an interest rate of 3.65 per cent. Tricaud says the Australian banking sector offers strong growth potential for HSBC, whose market share is about 1.5 per cent at present.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, HSBC BANK PLC, AUSSIE HOME LOANS LIMITED

‘Don’t throw away growth for dividends’

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Original article by Andrew White, David Rogers
The Australian – Page: 17 & 28 : 31-Aug-17

Data from Credit Suisse shows that 60 per cent that have a 30 June balance data increased their dividend payout in the August 2017 reporting season, while 31 per cent reduced their dividends. Perennial Value Management MD John Murray has welcomed the decision of some companies to increase their capital expenditure rather than returns to shareholders. Wilson Asset Management chairman Geoff Wilson notes that the increase in capex during the current reporting season is the strongest since 2007.

CORPORATES
PERENNIAL VALUE MANAGEMENT LIMITED, WILSON ASSET MANAGEMENT, CREDIT SUISSE (AUSTRALIA) LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, AMP LIMITED – ASX AMP, CALTEX AUSTRALIA LIMITED – ASX CTX, NUFARM LIMITED – ASX NUF, SKYCITY ENTERTAINMENT GROUP LIMITED – ASX SKC, AMCOR LIMITED – ASX AMC, AGL ENERGY LIMITED – ASX AGL, APA GROUP – ASX APA

Atlas maps out port route to beef up exports

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Original article by Tess Ingram
The Australian Financial Review – Page: 26 : 30-Aug-17

Atlas Iron has posted a 2016-17 net profit of $A48m, and its iron ore shipments totalled 14.4 million tonnes. Atlas forecasts that its shipments for 2017-18 will be within the range of nine to 10 million tonnes, and MD Cliff Lawrenson says the company will seek to utilise more of its capacity at the Utah Point bulk handling facility. This would allow Atlas to reduce its production costs, which averaged $A53 per tonne in 2016-17 and are forecast to be between $A54 and $A58 in 2017-18.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, PILBARA MINERALS LIMITED – ASX PLS

Rio hunts for new diamond mine as clock ticks for Argyle operation

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 30-Aug-17

Rio Tinto’s diamonds division will ramp up exploration as it seeks to replace the ageing Argyle and Diavik mines. Rio CEO Jean-Sebastien Jacques says the company will consider acquisitions in the sector, but its preferred option is to discover a new diamond deposit. He is optimistic that Rio can establish another diamond mine in Australia, and he would particularly like to find a new pink diamond mine, given the rarity of these diamonds and the premium prices they fetch.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DE BEERS SA