STRATEGIC PLANNING – AUSTRALIA

BHP nod to $US200m copper expansion drive

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Original article by James Thomson
The Australian Financial Review – Page: 1 & 11 : 5-Jul-16

Resources giant BHP Billiton will increase the capacity of the Los Colorados concentrator at its Escondida copper mine in Chile. Danny Malchuk, the head of BHP’s Minerals Americas division, believes that the project will cost less than the $US200m that has been budgeted. Expansion of the concentrator will allow the Escondida mine to increase annual production by between 150,000 and 200,000 tonnes. The project is slated for completion by mid-2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

New Rio boss signals end of iron ore wars

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Original article by James Chessell, James Thomson
The Australian Financial Review – Page: 21 & 24 : 4-Jul-16

BHP Billiton, Rio Tinto and Vale have significantly increased iron ore production in recent years. However, Rio’s new CEO Jean-Sebastien Jacques has indicated that rather than increasing output, the group will prioritise productivity and operational gains at its iron ore mines in the Pilbara region of Western Australia. Jacques also says Rio would be interested in acquiring quality assets, but only at the right price, and the group’s focus is likely to be on expanding its existing mines.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, CHINA. ASSETS SUPERVISION AND ADMINISTRATION COMMISSION, ANGLO-ASIA PROPERTY, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, GLENCORE PLC, CHINA MOLYBDENUM COMPANY LIMITED, BARRICK GOLD CORPORATION, ANTOFAGASTA PLC

Networks seek new strategy for Presto

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Original article by Jake Mitchell, Michael Bodey
The Australian – Page: 28 : 4-Jul-16

Data from Telsyte suggests that the Presto video-on-demand service had about 418,000 subscribers in June 2016, including 112,000 paid subscribers. In contrast, rival Netflix boasted 1.29 million subscribers in total, while Stan had 640,000. Presto’s joint venture partners Foxtel and Seven West Media are said to be considering their options, which could include merging Presto with one of Foxtel’s other video-on-demand products.

CORPORATES
PRESTO ENTERTAINMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, FOXTEL MANAGEMENT PTY LTD, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TELSYTE PTY LTD, HBO, SHOWTIME, BRITISH BROADCASTING CORPORATION, 21ST CENTURY FOX INCORPORATED, FOX UK, AMAZON.COM INCORPORATED, SKY PLC

BHP has high hopes for Trinidad oil prospects

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 29-Jun-16

BHP Billiton is optimistic that an oil well drilling program in Trinidad will yield positive results. The resources group is drilling three well in the region, with plans for another five wells later on. The Caribbean, the Gulf of Mexico and the Beagle Sub-basin off the coast of Western Australia are the focus of BHP’s oil exploration activities for the next several years. The petroleum division will account for the bulk of BHP’s exploration budget for 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP

Fortescue on track to hit gearing target

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Original article by Paul Garvey
The Australian – Page: 21 : 24-Jun-16

Fortescue Metals Group’s early repayment of debt over the course of 2015-16 will reduce its interest costs by about $US186m a year. The iron ore miner advised on 23 June 2016 that it has repaid an additional $US500m ($A663.4m) worth of debt. It has now repaid a total of $US2.9bn so far in 2015-16, and CFO Steve Pearce says the group could soon have lower gearing than BHP Billiton and Rio Tinto. Fortescue shares closed 8.3 per cent higher at $A3.53.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, METALYTICS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

BHP gets shale oil wells ready after price rises

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Original article by Barry FitzGerald
The Australian – Page: 21 : 23-Jun-16

BHP Billiton CEO Andrew Mackenzie has indicated that the group will commence production at some of its drilled but uncompleted shale oil wells in the US, following an upturn in the crude oil price. It is now trading at around $US50 per barrel, having reached a low of $US26 a barrel in February 2016. Mackenzie has also reiterated that BHP’s preference is to pursue growth via its existing assets rather than acquisitions.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD

Rio’s Harding departs in sweeping executive restructure

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Original article by James Thomson, Tess Ingram
The Australian Financial Review – Page: 15 : 22-Jun-16

Rio Tinto has advised that Chris Salisbury will replace Andrew Harding as the head of its iron ore division. Harding’s departure is part of a broader restructuring at Rio Tinto as it transitions to new CEO Jean-Sebastien Jacques. Joanne Farrell will become the MD of Rio Tinto’s Australian operations, as well as group executive for health, safety and environment. Arnaud Soirat will be CEO of copper and diamonds, and Alan Davies takes on the role of CEO of energy and minerals. Harding had been a candidate to succeed Sam Walsh as Rio Tinto CEO.

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

Can Myer shrink to greatness?

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Original article by James Thomson
The Australian Financial Review – Page: 16 : 21-Jun-16

Credit Suisse analyst Grant Saligari suggests that Australian-listed department store group Myer should reduce its floor space by up to 20 per cent. Saligari visited Myer’s stores at Doncaster, Eastland, Chadstone and Highpoint in Victoria and concluded that their trading space – at more than 12,000 sq m in each – is excessive. Improvements in customer services and refurbishment of stores are also necessary.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP

APN sale draws out rival bidders

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Original article by Jake Mitchell
The Australian – Page: 23 : 20-Jun-16

APN News & Media is hoping to sell its regional newspapers business for $A50m, although some observers believe that a lower price is likely. News Corporation and Singapore-based Fetch Plus are among the groups that have submitted binding offers to buy the Australia Regional Media business. News Corp Australia holds a 14.9 per cent stake in APN, and executive chairman Michael Miller is a former CEO of APN.

CORPORATES
APN NEWS AND MEDIA LIMITED – ASX APN, AUSTRALIAN REGIONAL MEDIA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FETCH PLUS INCORPORATED PTE LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, AQUASIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, AUSTAR UNITED COMMUNICATIONS LIMITED, TEN NETWORK HOLDINGS LIMITED – ASX TEN, ABN AMRO AUSTRALIA LIMITED, NZME, FAIRFAX MEDIA LIMITED – ASX FXJ, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, NEW ZEALAND. COMMERCE COMMISSION

Packer bid to unlock Crown value

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Original article by James Thomson, Perry Williams, John Stensholt
The Australian Financial Review – Page: 1 & 10 : 16-Jun-16

The board of Crown Resorts has proposed to restructure the Australian-listed company. The new corporate structure involves the creation of an international holding company which will hold Crown’s stakes in Melco Crown, a US casino and hotel, the Nobu restaurant chain, British casino operator Aspers and Caesars Growth Partners. Crown Resorts will retain its existing local assets, which include casinos and hotels in Melbourne and Perth, the Barangaroo project in Sydney, Betfair Australasia, and stakes in Crownbet and the Ellerston resort in New South Wales. A listed property trust will also be created.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, MELCO CROWN ENTERTAINMENT LIMITED, CONSOLIDATED PRESS HOLDINGS LIMITED, ALON, NOBU, CAESARS GROWTH PARTNERS, ASPERS, BETFAIR AUSTRALASIA PTY LTD, CROWNBET PTY LTD, CROWN TOWERS, CONSOLIDATED PRESS HOLDINGS LIMITED