Merry Christmas Everyone.
I trust you have had a prosperous year in 2009 and that 2010 will be even better.
Blog posts will resume again on the 4th of January 2010.
Archive for December, 2009
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Merry Christmas – Blog Posting Schedule
Thursday, December 24th, 2009Santa Claus Delivers Present To Investors On 23/12/2009
Thursday, December 24th, 2009The US markets closed higher once again as the Santa Claus rally continues. The Dow closed up 7 points or 0.1% at 10,471, the S&P500 was up 3 points or 0.3% at 1120 and the Nasdaq was up 17 points or 0.7% at 2269.
Gold and oil both climbed higher. Gold settled up $7.80 at $1094.50/oz and crude oil was up $2.27 at $76.67/bbl.
Decmil Group Awarded $74 million Contract for Gorgon Project
Thursday, December 24th, 2009Perth-based engineering and construction company Decmil Group Limited (DCG) today announced that its wholly-owned subsidiary, Decmil Australia Pty Ltd has been awarded a $74M sub-contract by Thiess Pty Ltd for the design and construction of temporary construction facilities which form part of Thiess’ Site Preparation & Temporary Construction Facilities contract for the Gorgon Project. The scope of work includes: the installation of temporary facilities, the supply/installation of warehouses and workshops and related engineering and design. On-site work is expected to commence mid 2010 with practical completion anticipated in September 2011. The contract award increases DGL’s order book to A$350 million, of which approximately A$132 million will be completed in the 2009/10 financial year with A$218 million in the 2010/11.
Decmil Group Limited CEO Scott Criddle said “In the past 12-18 months, Decmil Australia has been diligent in its approach to securing significant contracts in the Western Australian resources and oil and gas sectors. Securing another Gorgon contract is yet another reflection of the strong standing and respected relationships Decmil has built with major companies in the oil and gas sector, including Chevron and the Kellogg Joint Venture.”
Decmil Group Limited (DCG) is a multi-disciplined design, civil engineering and construction company focussed on delivering integrated solutions to blue-chip clients in the oil and gas, resources and infrastructure sectors in Western Australia through a group of wholly-owned subsidiaries. Decmil Australia Pty Ltd is a leading provider of engineering construction, maintenance and industrial services to Australia’s resources, energy and infrastructure sectors. The company offers a wide range of construction and maintenance services, specialising in non-process infrastructure on remote sites. Decmil has been contracted to design, build and commission temporary and permanent accommodation villages, administration buildings, maintenance facilities and storage facilities for some of the world’s leading resource companies.
Ludowici Acquires Johnson Screens Mining Division
Thursday, December 24th, 2009Ludowici Limited (LDW) today announced that it has agreed to acquire the Mining Division (JS Mining) of Johnson Screens globally (except Africa) for US$27.7m ($31.3m based on an exchange rate of A$/US$0.8850). JS Mining is a leading player in the mineral processing consumables market, supplying a complementary range of screening and separation products to the mining and quarrying industry in Australia, North and South America and India. The acquisition is expected to be completed on 31 December 2009. The consideration payable to Johnson Screens for the business comprises $18.5m in cash and the issue of 2.5m shares in Ludowici at $3.00 per share (Johnson Screens Issue). Johnson Screens will also retain $5.3m of net debtors and creditors. The cash component will be funded by a placement to institutions (Institutional Placement) and a Share Purchase Plan (SPP) to shareholders, raising $9.3m, with the balance to be funded by debt.
Ludowici’s Chairman, Phil Arnall said “The acquisition is an excellent addition to Ludowici’s existing product offering, optimising the Company’s mix of consumable and capital products, and will allow Ludowici to take advantage of its existing global footprint and sales infrastructure. This is also the first time that Ludowici has undertaken a significant share placement to new investors and we welcome the new shareholders to the company as we look forward to driving growth in Ludowici.”
JS Mining designs, manufactures and markets screening products (stainless steel, polyurethane, rubber and woven wire) and wear liners (chute, SAG, ball and impact mills). The business operates in the same geographic markets as Ludowici and has a complementary product suite and customer base. JS Mining has forecast 2010 revenue of circa $52m, EBIT of circa $6m and employs 185 personnel.
Asciano Secures $600 million Coal Haulage Contract With Whitehaven
Thursday, December 24th, 2009Asciano (AIO) and Whitehaven Coal (WHC) have signed a long term contract for the provision of coal haulage services from Whitehaven’s Narrabri, Werris Creek and Gunnedah loadpoints in the Gunnedah Basin of New South Wales.
The contract provides Whitehaven Coal with long term certainty of their coal haulage requirements going forward. The agreement includes clear performance hurdles and capacity obligations from Pacific National to ensure Whitehaven’s port and rail capacity commitments are matched by above rail obligations through Whitehaven’s growth phase over the next decade.
This long haul, take or pay contract is expected to generate at least $600 million of revenue for Asciano over the term of the agreement. The new contract includes more than a doubling of the rail haulage task for Whitehaven Coal over the next 2 years and is expected to deliver a return on capital to Asciano in line with the benchmarks achieved on recent coal haulage contracts.
The new contract requires one new train set to be ordered immediately. This additional train set is part of Asciano’s $160 million capital commitment announced in June 2009 and means all 4 trains provided for in that commitment are now ordered and underwritten by long term take or pay contracts. Whitehaven Coal has already invested in one train set itself which is expected to be operational in June 2010. Pacific National will lease and operate this train set from Whitehaven as part of this contract. Pacific National has obligations to invest in further trains as required by Whitehaven as its growth volumes come online during the contract period.
Whitehaven Coal’s Managing Director, Tony Haggarty commented, “we are extremely pleased to have entered into this partnership with Asciano for our long term coal haulage requirements. Entering into a contract with performance based hurdles is extremely important for Whitehaven as we expand our operations significantly in the Gunnedah Basin. We are aligning our port, track and above rail contracts to ensure we can deliver our long term growth objectives in the NSW coal export market,” Mr Haggarty said. Asciano Managing Director and CEO, Mark Rowsthorn commented, “this recent contract is a significant achievement for Asciano. As a result of the increased tonnes and longer haulage distances, Whitehaven is now becoming one of Asciano’s largest customers in NSW.”
US Markets Higher On 22/12/2009
Wednesday, December 23rd, 2009The US markets closed higher again. The Dow closed up 50 points or 0.5% at 10,464, the S&P500 was up 4 points or 0.4% at 1118 and the Nasdaq was up 15 points or 0.7% at 2252.
Gold was lower while oil climbed higher. Gold settled down $9.30 at $1086.70/oz and crude oil was up $0.88 at $74.60/bbl.
VDM Group Secures $79 millon Contract with Rio Tinto
Wednesday, December 23rd, 2009VDM Group (VDM) is pleased to announce that its wholly owned subsidairy , Wylie and Skene Pty Ltd has been awarded a $79 million contract with Rio Tinto’s subsidiary Robe River Mining Co Pty Ltd. The award of this contract grows VDM’s total order book value to approximately to $400 million. This contract broadens the spread of VDM Group’s order book across the major corporations of Rio Tinto, BHP Billiton, CP Mining, Woodside Petroleum and Fortescue Metals Group. Under the terms of the contract, Wylie and Skene will undertake a major refurbishment of the Pannawonica township including the refurbishment of 19 existing commercial and infrastructure buildings, and a construction of a new service station and a light vehicle workshop within the town. The project is expected to be completed within 30 months with revenue expected to be booked in FY10 to FY12.
Wylie and Skene’s Managing Director, Mark Nagle believes this contract win highlights the depth of VDM Group relationship with blue chip clients such as Rio Tinto. “This contract continues a relationship that Wylie and Skene has built with Rio Tinto over 35 years”, he added. “This large project builds on the success we have enjoyed with major clients including Rio Tinto and Woodside Petroleum over the past few years”.
VDM Group is structured into 3 major operating divisions namely Consulting, Construction and Resources and Infrastructure. Within each division, there are specialised companies offering a comprehensive range of services which enables it to deliver a one stop design, construction and project management services to its clients.
Alcoa Enters JV Agreement in Saudi Arabia
Wednesday, December 23rd, 2009Alcoa (AAI) today announced it has formed a joint venture with Ma’aden, the Saudi Arabian Mining Company, to develop a fully integrated, world class aluminum industry in the Kingdom of Saudi Arabia. The joint venture will become the world’s preeminent and lowest cost supplier of primary aluminum, alumina and aluminum products, with access to the growing markets of the Middle East and beyond.
In its initial phases, the joint venture will develop a fully integrated industrial complex, including a bauxite mine with an initial capacity of 4,000,000 metric tons per year (mtpy); an alumina refinery with an initial capacity of 1,800,000 mtpy; an aluminum smelter with an initial capacity of ingot, slab and billet of 740,000 mtpy; and a rolling mill, with initial hot mill capacity of between 250,000 and 460,000 mtpy. The mill will focus initially on the production of sheet, end and tab stock for the manufacture of aluminum cans, and potentially other products to serve the construction industry. It will be one of the most technically advanced mills in the world. The complex will utilize critical infrastructure, including low cost and clean power generation, as well as port and rail facilities, developed by the Kingdom’s government. Bauxite feedstock for the planned alumina refinery will be transported by rail from the new mine at Al Ba’itha, near Quiba, in the north. The project will be developed and financed in two phases, with the rolling mill and smelter in the first phase. First production from the aluminum smelter and rolling mill is anticipated in 2013, and first production from the mine and refinery is expected in 2014.
Capital investment is expected to be approximately SAR 40.5 billion ($US 10.8 billion), subject to the completion of detailed feasibility studies and environmental impact assessments. Ma’aden will own 60 percent of the joint venture. Alcoa will control the remaining 40 percent of the joint venture through an investment partnership in which it will own 20 percent and its partners will participate through financing that represents the other 20 percent economic interest. Each of Alcoa and the partners will invest $900 million over a four‐year period and will be responsible for their pro rata share of the project financing, in addition to specific completion commitments. Alcoa will provide know how, management expertise and support during the design, construction and operation of the mine, refinery, smelter and rolling mill. Alcoa will also arrange the supply of alumina feedstock to the smelter from outside the Kingdom until the project refinery comes on stream. Alcoa and Ma’aden will work with leading international and local firms on the design and construction of the complex.
Alcoa President and CEO Klaus Kleinfeld said, “This joint venture is a once in a generation opportunity for Alcoa, for Ma’aden and for the Kingdom of Saudi Arabia. We are creating a fully integrated aluminum complex that will be the most technologically advanced and cost efficient in the world. By changing the operating dynamics and cost base within our industry, the complex will be a model for the growth of aluminum in competition with other metals and is designed with the potential for future expansion. The joint venture leverages the unique strengths of both Alcoa and Ma’aden to create substantial value for our investors, customers and partners.”
iSoft Group Secures Malaysian Contract
Wednesday, December 23rd, 2009iSOFT Group Limited (ISF) – Australia’s largest listed health information technology company today announced deals totaling $2.3 million for its Hospital Information System (HIS) at hospitals in Malaysia and Oman. OpenApps Sdn Bhd, a partner of the Malaysian government, agreed to a three-year, 4 million ringgit ($1.3 million) contract for iSOFT’s HIS at Keningau Hospital in the state of Sabah. The agreement, which will start in January 2010, includes a patient management system, clinician database, billing, pharmacy and laboratory solutions. The total value consists of a license fee, with the remainder in support and maintenance over the period. The Ministry of Defence in the Sultanate of Oman agreed to a three-year support and maintenance deal worth RO351,000 ($1 million) for iSOFT’s HIS at four sites in Muscat and Salalah. The contract also includes an option to extend the license to about 40 remote clinics.
“These deals are significant in the context of their regions, and demonstrate iSOFT’s ability to help deliver healthcare outcomes for governments worldwide,” said Gary Cohen, Executive Chairman & CEO.
iSOFT Group Limited (ISF) is the largest health information technology company listed on the Australian Securities Exchange, and among the world’s biggest providers of advanced application solutions in modern healthcare economies. iSOFT works with healthcare professionals to design and build software applications that answer all of the difficult questions posed by today’s healthcare delivery challenges. Our solutions act as a catalyst for change, supporting free exchange of critical information across diverse care settings and participating organisations.
