STRATEGIC PLANNING – AUSTRALIA

APN, Fairfax mulling NZ assets merger

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Original article by Max Mason
The Australian Financial Review – Page: 16 : 10-May-16

APN News & Media will outline details of a proposal to spin off its New Zealand division at its AGM on 11 May 2016. The listed newspaper, radio broadcasting and outdoor advertising group also intends to undertake a capital raising worth up to $A200m. Meanwhile, Fairfax Media has downplayed speculation that it is also looking at demerging its NZ operations. However, Grant Samuel is said to have been commissioned to advise on a potential merger of the two groups’ NZ businesses. The firm is also advising APN on its demerger and capital raising.

CORPORATES
APN NEWS AND MEDIA LIMITED – ASX APN, FAIRFAX MEDIA LIMITED – ASX FXJ, NZME, FAIRFAX NEW ZEALAND LIMITED, GRANT SAMUEL AND ASSOCIATES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Orica shares dive 12pc as shareholders blast poor result

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Original article by Jared Lynch
The Australian Financial Review – Page: 1 & 11 : 10-May-16

Mining services group Orica has posted a 2015-16 interim net profit of $A149m, which is 33 per cent lower than previously. The explosives manufacturer’s revenue was 22 per cent lower at $A2.6bn, and its half-year dividend has been reduced from $A0.40 per share to just $A0.205 following a decision to abandon its progressive dividend policy. CEO Alberto Calderon has warned that a significant improvement in commodity markets is unlikely for some time.

CORPORATES
ORICA LIMITED – ASX ORI, STANDARD AND POOR’S CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN TAXATION OFFICE, MORGANS FINANCIAL LIMITED

Rio plans another big Mongolia expansion

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Original article by Matt Chambers
The Australian – Page: 23 : 10-May-16

The Oyu Tolgoi mine will produce about 500,000 tonnes of copper a year when an underground expansion of the project is completed. Rio Tinto approved the expansion project on 6 May 2016, but Turquoise Hill Resources CEO Jeff Tygesen has flagged further expansion of Oyu Tolgoi by increasing the capacity of the mine’s concentrator. Turquoise Hill has a 66 per cent stake in Oyu Tolgoi, and Rio Tinto in turn is the Canada-based group’s major shareholder.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TURQUOISE HILL RESOURCES LIMITED

Santos puts cost cutting before more asset sales

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Original article by Simon Evans, Angela Macdonald-Smith
The Australian Financial Review – Page: 23 & 32 : 5-May-16

Shares in Santos closed 8.7 per cent lower at $A4.20 on 4 May 2016, after the oil and gas producer’s annual meeting. Santos has shed 825 employees over the last 18 months, and CEO Kevin Gallagher has confirmed that more redundancies are on the agenda as part of the group’s cost-cutting strategy. He has also indicated that Santos may eventually divest some assets, but stressed that reducing costs and stabilising the company is the immediate priority.

CORPORATES
SANTOS LIMITED – ASX STO, HONY CAPITAL, ENN HOLDINGS, GLADSTONE LNG PTY LTD, TOTAL SA, RBC CAPITAL MARKETS

ANZ dividend cut puts pressure on rivals to follow suit

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 18 : 4-May-16

The ANZ Bank reported a 2015-16 interim cash profit of $A2.8bn on 3 May 2016, which was slightly below market expectations. The banking major reduced its half-year dividend from $A0.86 per share to $A0.80, prompting speculation that National Australia Bank will do so as well when its interim results are released on 5 May. Omkar Joshi of Watermark Funds Management has welcomed ANZ’s decision to reduce its dividend payout ratio, while Katana Asset Management’s Romano Sala Tenna says the other major banks should follow its example.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WATERMARK FUNDS MANAGEMENT PTY LTD, KATANA ASSET MANAGEMENT LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD, INVESTORS MUTUAL LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION

Foxtel seeks delayed EPL coverage

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Original article by Dominic White
The Australian Financial Review – Page: 30 : 2-May-16

Pay-TV group Foxtel is said to be negotiating a deal to broadcast the TV channels of some of the most popular English Football League teams. The channels provide delayed coverage of EPL matches, and were previously shown in Australia by FetchTV. Foxtel CEO Peter Tonagh does not expect many EPL fans to cancel their Foxtel subscription when Optus’s exclusive three-year deal for live coverage of EPL matches begins in August 2016.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, ENGLISH PREMIER LEAGUE, SINGTEL OPTUS PTY LTD, FETCHTV PTY LTD, MANCHESTER UNITED FOOTBALL CLUB, MANCHESTER CITY FOOTBALL CLUB, LIVERPOOL FOOTBALL CLUB PLC, ARSENAL FOOTBALL CLUB PLC, CHELSEA FOOTBALL CLUB, BEIN MEDIA GROUP, BEIN SPORTS, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, FOX SPORTS AUSTRALIA PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS

Tonagh’s plan to get halo back on pay TV

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Original article by Dominic White
The Australian Financial Review – Page: 30 : 2-May-16

The iQ3 digital recorder, the Presto streaming video joint venture with Seven West Media and the wholesale broadband deal with Telstra are among the priorities for Foxtel CEO Peter Tonagh. Restoring Foxtel’s "halo" following the success of Netflix is also on the agenda for Tonagh, who acknowledges that the pay-TV group needs to do more to promote the fact that it offers a much large range of content than Netflix.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, PRESTO ENTERTAINMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, TELSTRA CORPORATION LIMITED – ASX TLS, NETFLIX INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTAR UNITED COMMUNICATIONS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, FETCHTV PTY LTD, STAN ENTERTAINMENT PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, SKY PLC, EASYNET GROUP

Fortescue stays disciplined on debt

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Original article by Paul Garvey
The Australian – Page: 20 : 28-Apr-16

Fortescue Metals Group will reduce the annual interest bill on its debt by $US48m by redeeming some $US577m ($A757.8m) of senior unsecured notes. These notes were due to be redeemed in 2019, but the iron ore group intends to do so on 1 June 2016. CEO Nev Powers says repaying debt will continue to be a priority for Fortescue, which has repaid or redeemed some $US1.7bn worth of debt in the last year.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Energy giants target Bight’s $100bn prize

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Original article by Matt Chambers
The Australian – Page: 17 & 18 : 26-Apr-16

Wood Mackenzie has estimated that the Great Australian Bight could yield about 1.9 billion barrels of oil equivalent. However, Andrew Harwood of Wood Mackenzie notes that the downturn in the crude oil price has prompted many resources groups to shun frontier drilling. Nevertheless, BP and Chevron are among the oil producers that are seeking to undertake exploration programs in the Great Australian Bight.

CORPORATES
WOOD MACKENZIE, BP PLC, CHEVRON CORPORATION, SANTOS LIMITED – ASX STO, STATOIL AS, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, GREENPEACE, CONSERVATION COUNCIL OF SOUTH AUSTRALIA INCORPORATED, INTERNATIONAL FUND FOR ANIMAL WELFARE, THE WILDERNESS SOCIETY

Explorers hoping to say the L-word

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 26-Apr-16

A growing number of Australian-listed resources groups are expanding into the lithium sector or shifting their focus to lithium in order to capitalise on demand for electric vehicles and rechargeable batteries. However, Andrew Shearer of PAC Partners cautions that many prospective lithium players are unlikely to advance to the development or production stages.

CORPORATES
PAC PARTNERS PTY LTD, PETRA CAPITAL PTY LTD, DAKOTA MINERALS LIMITED – ASX DKO, SEGUE RESOURCES LIMITED – ASX SEG, PIONEER RESOURCES LIMITED – ASX PIO, BIRIMIAN GOLD LIMITED – ASX BGS, CAENEUS MINERALS LIMITED – ASX CAD, ARDIDEN LIMITED – ASX ADV, CAZALY RESOURCES LIMITED – ASX CAZ, ARGONAUT RESOURCES FUND PTY LTD, CRUSADER RESOURCES LIMITED – ASX CAS, HANNANS REWARD LIMITED – ASX HNR, EVERLIGHT RESOURCES PTY LTD, KIDMAN RESOURCES LIMITED – ASX KDR, WESTERN AREAS LIMITED – ASX WSA, PATERSONS SECURITIES LIMITED