STRATEGIC PLANNING – AUSTRALIA

As decision looms, BHP’s potash passion play fades – for now

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Original article by James Thomson
The Australian Financial Review – Page: 17 & 22 : 18-Mar-19

It is estimated that commencing production at BHP’s Jansen potash project in Canada will require a capital investment of about $US5bn ($7bn). BHP has yet to make a firm commitment to the project, and observers say the resources group cannot continue to postpone a decision indefinitely. On one hand, potash is likely to be a boom commodity in coming years as demand for agricultural crops in regions such as Asia grows. However, the Jansen project will deliver relatively low returns for BHP investors, while global supply of potash is increasing.

CORPORATES
BHP GROUP LIMITED – ASX BHP, POTASH CORPORATION OF SASKATCHEWAN INCORPORATED

CBA shelves wealth sale on Hayne hit

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Original article by Richard Gluyas
The Australian – Page: 21 & 25 : 15-Mar-19

The Commonwealth Bank has advised that the divestment of its wealth and mortgage broking assets has been put on hold to allow it to focus on implementing the Hayne royal commission’s recommendations and its customer remediation program. National Australia Bank also recently indicated that it will postpone its proposed demerger of wealth manager MLC due to the fallout from the royal commission.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COLONIAL FIRST STATE GROUP LIMITED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, FINANCIAL WISDOM LIMITED, COUNT FINANCIAL LIMITED, AUSSIE HOME LOANS LIMITED, MLC LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, IOOF HOLDINGS LIMITED – ASX IFL, MITSUBISHI UFJ TRUST AND BANKING INCORPORATION, WESTPAC BANKING CORPORATION – ASX WBC

Newcrest focus turns to Canada

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Original article by Paul Garvey
The Australian – Page: 22 : 13-Mar-19

Barrick Gold will not proceed with a takeover bid for Newmont Mining Corporation. The two groups will instead combine their gold mines in Nevada via a joint venture arrangement. Newcrest Mining had been touted as a likely bidder for Newmont’s Australian assets if the merger had proceeded. Meanwhile, Rahul Anand of Morgan Stanley says Newcrest’s expertise in block cave mining makes the Red Chris gold mine in Canada a ‘natural fit’ for the company. Newcrest CEO Sandeep Biswas has indicated that the Red Chris deal does not preclude further acquisitions.

CORPORATES
BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, NEWCREST MINING LIMITED – ASX NCM, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, HARMONY GOLD MINING COMPANY LIMITED, LUNDIN MINING CORPORATION

Reprieve for Myer as profits rise

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Original article by Eli Greenblat
The Australian – Page: 17 & 27 : 7-Mar-19

Department store group Myer Holdings has posted a 2018-19 interim profit of $38.4m, compared with a writedown-marred loss of $476m for the previous corresponding period. Myer’s underlying profit was up 3.1 per cent at $41.3m, but sales fell by 2.8 per cent to $1.67bn. CEO John King says Myer will continue to sale overseas fashion brands, but it will seek to increase its in-house brands’ share of group sales from 17.5 per cent to 20 per cent.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED

Women and science driving future BHP

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Original article by Luke Housego
The Australian Financial Review – Page: 17 & 24 : 1-Mar-19

BHP has appointed Laura Tyler to the newly-created role of chief geoscientist, and Jonathan Price has become its inaugural chief transformation officer. CEO Andrew Mackenzie says the new roles are part of BHP’s push to increase its focus on science and technology. Geraldine Slattery and Vandita Pant have also been added to BHP’s executive team, bringing the resources giant closer to its target of 50 per cent female representation. Pant will succeed Arnoud Balhuizen as chief commercial officer.

CORPORATES
BHP GROUP LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, BANKWEST CURTIN ECONOMICS CENTRE, CREDIT SUISSE (AUSTRALIA) LIMITED

OZ sets sights on long-term payoff

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 28-Feb-19

OZ Minerals has posted a 2018 net profit of $222.4m, which is 3.8 per cent lower than previously, although revenue was up 9.2 per cent at $1.12bn. Shareholders will receive a final dividend of $0.15 per share, but OZ has opted against paying a special dividend to finance growth projects such as the Carrapateena copper mine in South Australia. CEO Andrew Cole has also indicated that OZ will not proceed with a concentrate treatment plant in SA as it does not "stack up" at present.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, AVANCO RESOURCES LIMITED, JP MORGAN AUSTRALIA LIMITED

HT&E tunes in to potential deals after strengthening balance sheet

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Original article by Max Mason
The Australian Financial Review – Page: 19 : 14-Feb-19

Radio broadcaster HT&E has posted a net profit of $36.7m for calendar 2018, which is 23 per cent higher than previously. Revenue was five per cent higher at $271.8m and EBITDA rose seven per cent to $71.8m. The company’s Australian Radio Network division has posted revenue of $235.5m and EBITDA of $84.6m for the year. CEO Ciaran Davis says HT&E is open to acquisitions, but he says there are no "definitive opportunities" at present.

CORPORATES
HT&E LIMITED – ASX HT1, AUSTRALIAN RADIO NETWORK PTY LTD, ADSHEL PTY LTD, NZME LIMITED – ASX NZM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, ALLAN GRAY AUSTRALIA PTY LTD

BHP’s $1.3bn to lift US oil projects

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Original article by Paul Garvey
The Australian – Page: 20 : 14-Feb-19

Production at the Atlantis oil field in the Gulf of Mexico will increase by about 38,000 barrels of oil equivalent a day following BHP’s decision to invest $US696m ($976.3m) in the third stage of the project. BHP will also spend $US256m on drilling an additional appraisal well at its Trion project off the coast of Mexico. The capital investment is part of BHP’s strategy to increase its conventional oil and gas output.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BP PLC

Big agenda: Chronican has his work cut out for NAB revival

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Original article by Eric Johnston
The Australian – Page: 17 : 11-Feb-19

Anthony Healy and Mike Baird are said to be the leading internal candidates to succeed National Australia Bank CEO Andrew Thorburn, while external contenders could include Craig Drummond, Ross McEwan and Lyn Cobley. Acting CEO Philip Chronican stresses that NAB has a "very clear strategy" that is being well executed. He notes that the last week has been challenging for the bank, with the resignation of Thorburn and chairman Ken Henry and the release of the banking royal commission’s final report.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MEDIBANK PRIVATE LIMITED – ASX MPL, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED

Polly Waffle to make a comeback after success of Violet Crumble

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Original article by Simon Evans
The Australian Financial Review – Page: 3 : 25-Jan-19

Adelaide-based Robern Menz has bought the iconic Australian brand Polly Waffle from Nestle and will relaunch the popular chocolate bar, which was discontinued in 2009. Robern Menz previously bought the Violet Crumble brand from Nestle in 2018, in a deal that has boosted sales turnover by 35 per cent. Phil Sims, the CEO of Robern Menz, says the company is focusing on niche strategies in order to compete with global confectionery groups.

CORPORATES
ROBERN MENZ GROUP, NESTLE SA