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Territory Resources (TTY) announced on the 17/2/2011 that they would be conducting a Share Purchase Plan to raise additional capital. The record date was the 16/2/2011 on which shareholders must own the share to participate in the SPP. The closing date is still to be announced. A maximum of $10,000 can be purchased by each shareholder at $0.30.
Discount : 4.8% Liquidity : Ok Profitability : Ok Stability : Poor
*Note: Discount is based on the closing price on the 17 February 2011.
AUSTAR (AUN) and NBN Co today announced they have entered into an agreement which sees NBN Co acquire AUSTAR’s 2.3 GHz and 3.4 GHz spectrum holdings, enabling NBN Co to roll out a high-speed fixed-wireless service to rural and regional areas.
NBN Co is developing a wholesale high-speed broadband network which will be available to retail service providers on non-discriminatory terms, allowing RSPs to offer a range of plans and packages to consumers and businesses. The first NBN Co fixed-wireless commercial services are scheduled for delivery in mid 2012. NBN Co has previously outlined plans to deliver next-generation wireless and satellite services to seven per cent of premises outside its fibre footprint. Under the deal, NBN Co will acquire AUSTAR’s 2.3 GHz and 3.4 GHz spectrum licences for $120 million. The $120 million payment comprises $58 million for the subsidiary that holds the spectrum licences, with a further $62 million for the assignment of this subsidiary’s debt.
AUSTAR Chief Executive Officer Mr John Porter said: “This is a great result for NBN Co, AUSTAR and most importantly, regional Australians. There is no doubt that NBN Co will build broadband services in regional Australia very efficiently with consumers outside metropolitan markets finally gaining access to world-class broadband services.” Mr Porter noted that the NBN Co deal differed from AUSTAR’s 2008 deal with Optus and OPEL, which included a combination of cash and various wholesale arrangements. “NBN Co’s wholesale model will provide a level playing field for all service providers. By retailing NBN Co services, AUSTAR will be able to offer consumers a broader range of products than we would have by building our own network.”
NBN Co is a government business enterprise formed in July 2009 to design, build and operate the national broadband network (NBN). The NBN will enable high-speed broadband to be delivered to all Australian households, businesses and enterprises through a combination of fibre to the premise, wireless and satellite. To facilitate the development of a competitive telecommunication market, NBN Co is operating a wholesale-only, open-access network, and making its wholesale services available to retail service providers on non-discriminatory terms.
Austar United Communications AUSTAR (AUN) is a leading provider of subscription television services in regional and rural Australia, with more than 760,000 customers enjoying satellite digital television services. Internet and mobile telephony services complete AUSTAR’s product offering. AUSTAR is also a significant provider of programming in the Australian television market through its 50% owned joint venture, XYZnetworks.
http://www.traderdealer.com.au/Fundamentals/aun
The Directors of Bunnings Property Management Limited, the Responsible Entity of Bunnings Warehouse Property Trust (BWP or the Trust), announces that the Trust has agreed to acquire from a wholly owned subsidiary of Bunnings Group Limited, a portfolio of 10 operational Bunnings Warehouses and three properties on which BGL will develop Bunnings Warehouses (Portfolio Acquisition). The acquisition price of $241.7 million represents the total amount payable to BGL assuming the completion of the Bunnings Warehouses to be developed by BGL.
Mr Grant Gernhoefer, General Manager of Bunnings Property Management Limited, said: “The Portfolio Acquisition adds substantially to the Trust’s existing portfolio and is expected to provide unitholders with a secure, growing income stream and long-term capital growth, consistent with the Trust’s objectives. The fully underwritten Entitlement Offer to part fund the Portfolio Acquisition will ensure BWP maintains its conservatively geared balance sheet to provide financial flexibility for funding further acquisition opportunities.”
http://www.traderdealer.com.au/Fundamentals/bwp
Phoslock Water Solutions (PHK) has signed a Distribution Agreement covering five provinces, with GDG Environnement, a major Canadian environmental services company. The Distribution Agreement is for an initial 2 year period and includes annual purchase obligations by GDG. The Agreement covers the Canadian provinces of Quebec, New Brunswick, Newfoundland, Labrador and Nova Scotia.
PWS General Manager for North America, Mr Eddie Edmunds said GDG was a good fit for Phoslock, providing significant expertise and coverage for blue-green algae impacted water bodies. “Phoslock water treatment to reduce phosphorus levels in waterways is highly complementary to GDG’s suite of services that are aimed protecting public health” said Mr Edmunds. “GDG has recently developed biosensors to detect cyanobacteria toxins, the blue-green algae that threaten the safety of drinking water all over the world. Application of Phoslock is an environmentally safe and effective means of starving the algae of nutrients thereby improving water quality” he explained.
For the past three decades, GDG Environment has been pursuing its mission of carrying out strategic environmental health interventions, first through the prevention and management of the microbiological risks posed by vector-borne microorganisms, and more recently, through allergen exposure prevention. The Company has a competent team of around 200 professionals and technicians that enable it to deploy its expertise throughout the country. The Company possesses two highly specialized laboratories, located at its head office in Trois-Rivières, Quebec. The Company is currently establishing, with a major research institute, a third laboratory specializing in nanotechnology and biosensors. The agreement with GDG is the second major distribution alliance entered by PWS this year. Last month the Company announced an agreement with US-based environmental product and services provider SePRO Corporation. The agreements, along with two other distribution agreements signed in mid 2010, give PWS a substantial footprint in North America for the first time and the potential for broad reach into these major markets.
http://www.traderdealer.com.au/Fundamentals/phk
* U.S. markets recovered overnight after strong corporate earnings results and a further round of corporate M&A deals
* European stock markets rose overnight to two-and-a-half year highs, led by the financials.
* Asian markets ended mixed yesterday. The Japanese market hit a 9-month high.
* Commodities were generally higher.
The SPI Futures is trading above the key level of 4800, and closed up marginally 0.2% (or 11 pts) at 4,923. The key levels for our index today are 4950 and 4870. M&A activity continues to drive specific stocks.
The ASX is set to trade higher today. We will continue to focus on local earnings reporting this week, as we had positive leads from overseas markets. Expect Financial and Materials stocks to be in focus. See below for stocks in the news today.
* International Merchandise Imports for January
* Foreign Exchange Transactions and Holdings of Official Reserve Assets for January.
U.S. markets recovered overnight, after strong corporate earnings results and a further round of corporate M&A deals. Stock gains were led by the materials and energy sectors, but retailers also rose after M&A activity. The gains came despite a mid-session pullback, after Israel’s foreign minister warned that the two Iranian warships that were crossing the Suez Canal into the Mediterranean Sea were seen as “provocations” that Israel cannot ignore.
The S&P 500 stock index has now doubled from its GFC low, with the market capitalisation of the S&P 500 now about $US12 trillion, compared with the $US6.9 trillion during the selloff in early 2009.
The Fed Reserve’s Federal Open Market Committee (FOMC) meeting minutes showed the Fed is more optimistic about the U.S. economic outlook, raising their growth outlook for 2011, as they expected inflation to remain low and unemployment to remain high.
In economic news U.S. home construction rose 15% in January to the highest level since September, boosted by multi-family homes, and producer prices (PPI) also showed mild gains, which should ease inflation concerns.
In coporate news:
* Discount retailer Family Dollar Stores surged 22% after receiving an unsolicited takeover bid;
* Dell jumped 13% after the computer maker reported 4Q earnings tripled, thanks to strong demand from corporate customers and lower component costs
* Deere gained 2% after fiscal 1Q earnings doubled, helped by agricultural-equipment sales in the U.S. and Canada.
The Dow closed up 0.5% (or 62 points) at 12,288, while in the broader market the S&P 500 index was up 0.6% (or 8 points) at 1,336 and the tech-heavy Nasdaq ended up 0.8% (or 21 points) at 2,826.
Sectors that make up the S&P index delivered solid performances, with outperformers including the Materials and Energy sectors up 1.3%, and Industrials and Financials 0.5%.
European stock markets rose overnight to two-and-a-half year highs, led by the financials. The Stoxx Europe 600 index gained 0.4% above its highest closing level since August 2008. Investor sentiment was boosted by some solid earnings news, as the French and German markets rose to levels unseen since 2008.
In London the FTSE 100 index reversed the losses of the previous session. The Bank of England (BoE) has forecast that the British economy will likely avoid a double-dip recession, despite suffering contraction in the final quarter of last year. Inflation is expected to hold well above its target of 2 percent this year, rangeing between 4% to 5% near-term. However, the central bank, in releasing its quarterly economic report, also predicted annual inflation would hold “well above” its target of 2.0 per cent this year, and would fluctuate between 4.0 and 5.0 per cent in the near term. Financials continued to lead the gains after the encouraging results from Barclays and the French bank Societe Generale is seen as signalling that the turnaround of the banks, that suffered severely from the GFC, is underway.
In London the FTSE 100 index closed up 0.8% (or 48 points) at 6,085, the German DAX was up 0.2% (or 14 points) at 7,414, while in France the CAC was up 1.0% (or 41 points) at 4,171.
Asian markets ended mixed yesterday. The Japanese market hit a 9-month high as exporters led the gains on the back of a weaker yen, and as the US dollar hit a 2-month high against the yen.
In Hong Kong the market has bounced off a key support level that has been in place for the past 4 months. In China the Shanghai Composite rose for a fifth straight session, boosted by steelmakers, which were bought up as they were able to pass on production cost hikes. However the Chinese inflation data showing a 4.9 percent rise in prices could provide some headwinds for the market amid fears that further tightening measures may be required.
In China the SSE Composite closed up 0.9% (or 25 points) at 2,924, while in Hong Kong the Hang Seng Index was up 1.1% (or 257 points) at 23,157 and in Japan the Nikkei 225 Index was up 0.6% (or 62 points) at 10,808. The Indian market has jumped nearly five per cent in a 4-day rally as bargain hunters stepped in after its recent sharp sell-off last week.
The Dollar Index was lower at 78.24 on a higher Euro, while the Australian Dollar last traded just above parity at 100.32. Commodities were generally higher.
For the session the Benchmark crude NYMEX for December delivery was up 0.8% (or $US0.69) to settle at $US85.01. Copper prices back at 2-year highs. Copper for December delivery was down -1.5% (or -6.6 cents) at $US4.4745. December gold was up marginally 0.1% at $US1,374.30.
ALZ – Australand has forecast earnings to grow by at least five percent in 2011 after returning to profitability in 2010 and says the outlook for residential, industrial and office sectors remains positive.
ARP – ARB Corporation, the automotive group, has reported a double-digit lift in 1H11 net profit amid strong sales growth and says it expects reasonable growth for the FY11.
BHP – BHP Billiton reported a 71.5 percent rise in 1H11 net profit and is confident of the outlook for commodities as emerging markets continue to drive growth.
COF – Coffey International has slumped 14% after reporting a 1H11 net loss of $4.7 million, but it expects a better second half performance.
CSL – CSL, the global blood products and vaccines maker, reported a 19 percent fall in 1H11 profit, and expects FY11 profit to decline around 10 percent, at the current exchange rates.
DMP – Domino’s Pizza Enterprises, the fast food supplier, posted a 17 percent rise in 1H11 net profit, upgrading full year guidance to 15 percent growth.
DXS – Dexus Property Group has upgraded its FY11 earnings guidance after returning to profitability and reported an interim net profit after tax of $294.4 million for 1H11.
GCL – Gloucester Coal has increased 1H11 profit by 28 percent on the back of strong coking coal sales.
GPT – GPT Group, the Property investor, says it has sold a portfolio of senior living communities in the US for $US890 million.
MRM – Mermaid Marine the supplier of marine services to the oil and gas industry, has reported a small jump in 1H11 profit, and is predicting a stronger second half.
SKC – Sky City the casino operator says its 1H11 normalised net profit rose 2.1 percent to $51 million, as revenue was steady in Auckland but softer in Darwin after the introduction of smoking bans.
SAI – SAI Global, the applied information provider, has reported 1H11 profit up 23 percent, and says full year profit will grow by another third.
SMX – SMS Management and Technology has posted a 15 per cent rise in 1H11 net profit.
TRS – The Reject Shop posted a 16 percent fall in 1H11 net profit, but could not provide guidance for the FY11 due to uncertainty about the costs to the company of the Queensland floods.
WDC – Westfield Group has returned to profitability with more than $1 billion in profit as the group’s restructure provides the platform for long term growth.
Peninsula Energy Limited (PEN) is pleased to announce that it has signed a long term sale agreement to supply 1,150,000 lbs of uranium oxide (U3O8) produced from the Lance Projects in Wyoming USA (Lance Projects).
During 2010 Peninsula engaged key utility and end user groups with the aim of securing long term sale agreements for U3O8 from the Lance Projects. Formal Requests for Product were received from several US utilities and after a detailed negotiation process Peninsula agreed to terms that secure the sale of U3O8 to be produced from the Lance Projects at escalated fixed price, fixed quantity and term.
The weighted average contract pricing over the term of the contract is consistent with the average term price used in the PFS. The terms of the sale agreement will see Peninsula supply U3O8 over a period of 7 years. Production is targeted to commence at the Lance Projects in 2012 and build to 1,500,000 lbs U3O8 per year (with a plant capacity of 3,000,000 lbs U3O8 per year).
Peninsula’s Executive Chairman Mr. Gus Simpson said “The agreement is an important milestone for Peninsula and the Company plans to conclude sales to other tier one utilities to ensure that both the price and quality of partner are optimized.”
http://www.traderdealer.com.au/Fundamentals/pen
Australian gold producer Tanami Gold NL (TAM) is pleased to report a further substantial increase in its gold Resources, with total Measured, Indicated and Inferred Mineral Resources increasing to 21.3 million tonnes grading 3.0g/t for 2.03 million ounces of gold.
The latest Resource increase follows a 40% increase in the Mineral Resource at the Company’s 100%-owned Central Tanami Project (“CTP”) in the Northern Territory, providing additional impetus to the Company’s plans to restart production at the CTP.
The CTP is expected to form a second substantial production hub alongside the Company’s existing 50,000oz per annum Western Tanami Operations, which are currently undergoing a significant expansion.
The updated CTP Resource estimate was completed for mineralisation contained within four of the six CTP Mineral Leases and has resulted in a total Measured, Indicated and Inferred Resource of 18.2 million tonnes grading 2.5g/t for 1.5 million ounces of gold (see Table 2). Within the total CTP Resource, 1.01 million ounces or 75% is classified as Measured or Indicated.
The new CTP Resource is a 40% increase over the previous Resource estimate completed in April 2010 which totalled 11.7 million tonnes grading 2.8g/t for 1.1 million ounces of gold .
The Resource increase follows seven months of intensive Reverse Circulation and Diamond Drilling at nine prospects within the CTP tenements and a re-estimation of gold Resources at Central Tanami. As a result of the latest upgrade, the Company’s gold Resource has increased by over 300% since June 2009 from 0.5Moz to 2.03Moz (see Figure 1), at a cost of less than $23 per Resource ounce reflecting a combination of exploration and drilling success and the acquisition of the CTP project.
Tanami Gold’s Managing Director, Mr Graeme Sloan, said that with the release of the updated Central and Western Tanami Mineral Resource, the Company would now focus on completing the Feasibility Study on the re-commencement of gold production from the CTP – which includes a 1.2Mtpa treatment facility, extensive infrastructure and over 2,000km of highly prospective tenements.
http://www.traderdealer.com.au/Fundamentals/tam
Australian ASX listed property investment and funds management company Aspen Group (APZ) is pleased to announce it has entered into an agreement, which is subject to finance, for the acquisition of the Australian Taxation Office Building (“ATO Building”), within the Central Business District of Adelaide, South Australia.
The ATO Building (previously referred to as “Tower 8”) is a major office tower development of approximately 36,700 sqm of net lettable area. It forms part of Aspen Development Fund No.1’s (ADF) impressive Adelaide City Central precinct. ADF is a development fund of which Aspen Group is fund manager and is the major shareholder.
The key benefits for Aspen Group in acquiring the tower project are:
Aspen Group Managing Director Mr Gavin Hawkins said, “The ATO Building will be a landmark investment grade asset in the Adelaide CBD with a blue chip tenancy profile and a long term WALE, and represents an excellent acquisition strategically for the Group.”
The agreement provides for Aspen Group to purchase the land from ADF and fund the construction of the building that will be developed by ADF. The total cost to Aspen Group on completion of the ATO Building is approximately $183.7 million, incorporating holding costs calculated at a rate of 9% pa on funds provided to ADF for the development. The total net cash outlay for Aspen Group is approximately $164 million, of which Aspen has already provided $18 million. The debt component of the total funding requirement is expected to be around $115 million.
http://www.traderdealer.com.au/Fundamentals/apz
* U.S. markets fell overnight after retail sales figures disappointed and energy stocks saw profit-taking.
* European markets finished generally higher overnight, led by the banks after Barclay’s results.
* Asian markets were mixed yesterday as Chinese January inflation data rose less than expected.
* Commodities were generally mixed.
The SPI Futures is trading above the key level of 4800, and closed down marginally -0.1% (or -6 pts) at 4,909. The key levels for our index today are 4930 and 4860. M&A activity continues to drive specific stocks.
The ASX is set to trade lower today. We will continue to focus on local earnings reporting this week, particularly BHP today, as we had mixed leads from overseas markets. Expect Energy and Materials stocks to weigh. See below for stocks in the news today.
* Westpac-Melbourne Institute Indexes of Economic Activity Leading Index for December
* Skilled Vacancies Index for February
* New Motor Vehicles Sales for January
U.S. markets fell overnight after retail sales figures disappointed and energy stocks saw profit-taking. The Commerce Department said retail sales rose 0.3 percent for the seventh straight month in January, but the increase was the smallest since June. Reports also showed that businesses increased their inventories for a 12th consecutive month in December and are at their highest level in nearly two years, while New York manufacturing activity continued to expand in February but price pressures rose.
Energy companies led stocks lower, as profit-takers stepped in. Exxon Mobil lost 2% after saying it added 3.5 billion barrels of oil and gas last year to the company’s reserves. Stock exchange stocks also fell as the NYSE agreed to combine with the operator of the Frankfurt stock exchange, Deutsche Boerse AG, creating the world’s largest financial markets company.
The Dow closed down -0.3% (or -42 points) at 12,227, while in the broader market the S&P 500 index was down -0.3% (or -4 points) at 1,328 and the tech-heavy Nasdaq ended down -0.5% (or -13 points) at 2,804.
Sectors that make up the S&P index delivered generally negative performances, including Materials, down -1.2%, Energy down -1.0%, Industrials down -0.4% and the Consumer Discretionary sector fell -0.2%.
European markets finished generally higher overnight, led by the banks after Barclay’s results. The Stoxx Europe 600 index gained 0.1% above its highest closing level since September 2008. Mining stocks traded lower across the board after inflation data from China.
In London the market reacted to official data that shows British annual inflation jumped to 4.0 per cent in January, the highest level for more than 2 years (vs a rate of 3.7 percent in December).
In corporate news:
* Barclays rose 3% after reporting its 2010 net profit rose 36 percent as loan impairments fell and its investment banking unit performed strongly
* The Deutsche Boerse and NYSE Euronext announced a merger agreement, a move which would create the world’s biggest exchange by revenues.
In Germany, Europe’s largest economy continues to grow, reporting 0.4 percent growth in the fourth quarter of 2010.
In London the FTSE 100 index closed down -0.4% (or -23 points) at 6,037, the German DAX was up marginally 0.1% (or 3 points) at 7,400, while in France the CAC was up 0.3% (or 14 points) at 4,130.
Asian markets were mixed as crude oil prices rose as unrest spread to several Middle Eastern states. In Japan, the Bank of Japan (BoJ) upgraded the nation’s economy for the first time in nine months, but left interest rates on hold at 0.1 percent.
In China, official data showed that January figures reported wholesale inflation rose at a faster-than-expected annual rate of 6.6%, while the consumer price index (CPI) rose 4.9% (vs expectations of a 5.4% rise). Inflation remains a concern as the figure is still high, even as the government has changed its methodology for calculating the figure, reducing the weight of food prices.
The data reinforced the view that further measures to cool the Chinese economy are likely, depiste three interest rate hikes in the past four months. The Chinese Shanghai Composite ended flat after the benchmark index hit its best level in three months in the previous session.
In China the SSE Composite closed flat at 2,899, while in Hong Kong the Hang Seng Index was down -1.0% (or -221 points) at 22,900 and in Japan the Nikkei 225 Index was up marginally 0.2% (or 21 points) at 10,746.67.
The Dollar Index was flat at 78.58 on a lower Euro, while the Australian Dollar last traded just below parity at 99.56. Commodities were generally mixed.
For the session the Benchmark crude NYMEX for December delivery was down -0.6% (or $US-0.49) to settle at $US84.32. Copper prices are back at 2-year highs, with copper for December delivery down -2.1% (or -9.9 cents) at $US4.5240. December gold was up 0.7% at $US1,374.80.
ALZ – Australand has forecast earnings to grow by at least five percent in 2011 after returning to profitability in 2010 and says the outlook for residential, industrial and office sectors remains positive.
AXA – AXA Asia Pacific Holdings says FY11 profit declined 11 percent as the wealth manager’s funds under management declined.
BHP – BHP Billiton reported profits of $10.5 billion and a rise in interim dividend up 10%.
CIF – Challenger Infrastructure Fund has reported a return to profitability in the 1H11 as the Aussie dollar strengthens and says earnings are expected to grow in the 2H11.
CPA – Commonwealth Property Office Fund has posted a 265 per cent rise in 1H11 net profit, and said a positive trends should continue into calendar 2011.
FGL – Foster’s Group says it will proceed with the separation of its beer and wine operations into two separately-listed companies.
GNS – Gunns has reported a 1H11 net loss amid writedowns due to the sale of assets and restructuring costs and says market conditions are expected to remain difficult in the period ahead.
GWT – GWA Group expects FY11 year earnings to rise due to an improved housing market, after it reported a 30 percent increase in 1H11 profit.
MRM – Mermaid Marine, the supplier of marine services to the oil and gas industry, has reported a small jump in 1H11 profit, and is predicting a stronger second half.
PDN – Paladin Energy has increased its 1H11 net loss by 55 percent to $29.5 million as the uranium producer revised down its production forecast.
PPT – Perpetual has increased its 1H11 underlying profit guidance, even as it takes a non-cash goodwill impairment charge of $10.6 million after tax.
PRY – Primary Health Care says its 1H11 profit fell 73.5 percent but it remained confident that underlying healthcare demand would provide long term volume growth.
SAI – SAI Global, the applied information provider, has reported 1H11 profit up 23 percent, and says full year profit will grow by another third.
TLS – Telstra Corporation will upgrade its mobile network to 4G technology in the central business districts of major cities by the end of this year.
TSE – Transfield Services Infrastructure Fund has tripled its 1H11 net profit and expects full year earnings of $104 million.
WBC – Westpac, Australia’s second biggest lender, says cash earnings increased 5 percent as bad debts and expenses fell and income increased.
Ausenco Limited (AAX) announced the award of a Create phase contract for OceanaGold Corporation’s Didipio Project in the Philippines.
Ausenco CEO Zimi Meka said he was pleased to be given the opportunity to continue working with the Oceanagold team to deliver this project. “Our Minerals & Metals business was involved in the Didipio Project before it was put on care and maintenance, so we are glad to be able to continue working with the team once again on this exciting project”,he said. “This award builds on the momentum of new Create phase projects we enjoyed in the second half of 2010 and is an encouraging and positive win for the beginning of 2011″
OceanaGold has announced it has in place funding for the expected US$140 million capital to complete the project and has recently commenced pre-construction activities and obtained permits and licenses to achieve commercial production in the first quarter of 2013.
The Didipio Project is located approximately 270 kilometers north of Manila in Northern Luzon, Philippines
http://www.traderdealer.com.au/Fundamentals/aax
