ASX Company News: Seek Enters Education Joint Venture With Swinburne University

January 14th, 20110

SEEK Limited and Swinburne University of Technology announced the formation of a new entity to deliver world-class online learning to Swinburne students. The venture is a 50:50 partnership between SEEK and Swinburne University to build an organisation that will deliver new, online courses specifically designed to meet the educational needs of working Australians. It will leverage SEEK’s online capabilities and Swinburne’s course content in a unique public private partnership. SEEK and Swinburne have each committed an initial investment of $5m, with the first student intake scheduled for early 2012.

Andrew Bassat SEEK Joint CEO commented” “We believe that this venture is a great fit for SEEK’s education businesses and further proves the importance of the online channel in delivering access to quality education for Australians. Partnering with Swinburne means students will receive the best online education available.” Ian Young Swinburne University’s Vice-Chancellor also commented: “This joint venture will build on the university’s online capability and seize a space that is becoming increasingly important in the 21st century. It will extend our reach in delivering education to students in a time and place that suits them, giving them access to a greater range of study options and unprecedented flexibility.”

SEEK Limited (SEK) is the leading provider of online employment services in Australia and New Zealand. In Australia, seek.com.au now hosts approximately 65% of all jobs on Australia’s major job sites. SEEK holds significant investments in leading online employment websites across a number of fast growing economies. SEEK owns 56.1% of Zhaopin (a leading employment website in China), 30% of Brasil Online Holdings (the two leading employment websites in Brazil), 22.4% of JobStreet (a leading employment website across SE Asia) and 40% of OCC (the leading employment website in Mexico). SEEK Asia owns 60% of JobsDB (leading job network across SE Asia). Swinburne University of Technology has an international reputation for quality career-orientated education and commitment to research. The university houses a number of globally recognised and innovative research centres including the Centre for Astrophysics and Supercomputing and the Centre for Micro Photonics. Currently under construction, Swinburne’s Advanced Technology Centre will bring greater research and teaching excellence to the areas of optical physics, sustainable infrastructure and advanced manufacturing.

www.seek.com.au

www.swin.edu.au

http://www.traderdealer.com.au/Fundamentals/sek

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ASX Company News: Finbar Group Enters Joint Venture With Swanline Group

January 14th, 20110

Western Australia’s leading apartment developer, Finbar Group Limited (FRI), has announced details of a joint venture which will result in the development of a 4,682 square metre site located on Lord Street, Summers Street, and Coolgardie Terrace in Perth. The property is a prime site that will yield approximately 90 new residential apartments plus an additional 10 commercial lots and produce a development with an end value of approximately $50 million. Subject to development approval, the joint venture will see a wholly owned subsidiary of Finbar develop the land owned by a subsidiary of investment and development company Swanline Group. Finbar will contribute $2.53 million as working capital for the project, and Swanline will contribute the land. Finbar will develop the project, earn a management fee, and share equally in development profit with Swanline.

Swanline Managing Director, Paul Trettel said today that “Swanline was immediately attracted to the location of the Lord Street land due to its proximity to the CBD, Mt Lawley café strip, and access to the public transport system. The company is delighted to have entered into a business relationship with Finbar, a highly reputable and successful property developer. We believe the timing is perfect to commence this exciting apartment development and have no doubt that Finbar will deliver an attractive project that is competitively priced, and in a desirable location to a market in demand.” Finbar Managing Director, Darren Pateman said “We look forward to producing a project that will provide the result desired by our joint venture partners, and further enhance the returns Finbar generates for our shareholders.”

Finbar Group Limited (FRI), its controlled entities and its jointly controlled entities is a property development company whose core business lies in the development of medium to high density residential apartments and commercial property within  the State of Western Australia.

www.finbar.com.au

http://www.traderdealer.com.au/Fundamentals/fri

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ASX Company News: US Nickel Acquires Gold Ball Mill

January 14th, 20110

US Nickel Limited (USN) is pleased to announce that it has  signed a Purchase Agreement to purchase a 500,000 t/pa ball mill, associated drives and pumps located north of Leonora, Western Australia. The  gold  ball  mill  will  be  a  key  component  in  the  Company’s  ambition  to  construct  a  500,000 tonnes  per annum  gold  processing  plant  at  the  Bullant  Mine  Project,  located  approximately 75  km  NW  of  Kalgoorlie, Western Australia. Purchase of the 500,000 t/pa ball mill by the Company will have a positive impact on the total cost of the new milling facility at Bullant and the timeline will be greatly reduced to commissioning.

Removal and relocation of the ball mill to the Bullant mine site is expected to begin within the next few weeks. Approval for relocation to the new site has been received from Argent Minerals Limited who currently control the  Bullant  mine  site  pending  shareholder  approval  and  settlement  of  the  Bullant  mine  acquisition  by  US Nickel which is anticipated in February. Initial  investigation  by  the  Company  suggests  that  the  500,000  t/pa  processing  facility  could  be  built  and commissioned  by  the  end  of  2011  taking  account  of  the  availability  of  suitably  experienced  locally  based contractors.

www.usnickel.com.au

http://www.traderdealer.com.au/Fundamentals/USN

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Stock Market Analysis: Strong Gains After Successful EU Bond Auctions

January 13th, 20110

* US markets rose overnight, led by financials after successful EU bond auctions and reports that US banks are set to increase their dividends.
* European markets rallied to a 52-week high, with the financial sector rallying across the continent.
* Asian stock markets edged higher yesterday, but they look set for a positive session today.
* Commodities prices climbed again for a third day
* ASX set to trade higher today

The SPI Futures is above its key weekly pivot level of 4700, and closed up 0.6% (or 26 pts) at 4,740.  The key levels for our index today are 4740 and 4680. M&A activity continues to drive specific stocks.

The ASX is set trade higher, as we had strong positive leads from overseas markets.  Expect a broad recovery today, tempered by those stocks exposed to the Queensland floods. 

In economics news today there is December Unemployment report (previously at 5.2%, forecast to be 5.1%).

US Markets

US markets rose overnight, led by financials after successful EU bond auctions and reports that US banks are set to increase their dividends later this year.  Commodities prices climbed again for a third day.  Investors jumped into US stocks as credit risk subsided on reports that EU officials are stepping up efforts to solve the debt crisis, after a Portuguese government debt auction eased immediate worries about the euro zone.

In economic news US December import prices rose 1.1%, generating their biggest 3-month gain in over a year on the back of surging energy prices. This news will add to fears of how inflation will impact the market as the year unfolds.  Reports of producer (PPI) and consumer price index (CPI) numbers are due out this week and should provide further confirmation. 

US listed European banks rose sharply with shares of Spanish banking giant Banco Santander surging 11% and those of rival Banco Bilbao Vizcaya Argentaria gaining 11%. 

Gains were spread across the market, with noteable sector performances including rises in Financials up 1.5%, Energy up 1.0%, Materials up 0.7%, Consumer Discretionary up 0.7% and Healthcare sector up 0.4%.

The Dow closed up 0.7% (or 84 points) at 11,755, while in the broader market the S&P 500 index was up 0.9% (or 11 points) at 1,286 and the tech-heavy Nasdaq ended up 0.8% (or 21 points) at 2,737.

European Markets

European markets rallied to a 52-week high overnight, with the financial sector rallying across the continent.  The Stoxx Europe 600 Index rose 1.4% to hit its highest level since September 2008.  Stocks in Spain and Greece surged 5%, leading a broad-based European market rally, as the successful Portuguese bond auction eased near-term fears about contagion of the euro-zone debt crisis. 

The euro jumped 1.2% against the US dollar, after the Portuguese government sold EUR1.25 billion in bonds in an auction at yields that were below market expectations. The successful auction provides some light after days of mounting concern over Portugal’s finances, with investors concerned that economic growth could be impacted if the government was forced to enact tougher austerity measures. Investor sentiment was bouyed by the aggressive buying of Portuguese debt by the European Central Bank, along with Japanese and Chinese commitments to making purchases of European debt.  However the euphoria over the successful bond auction needs to be tempered by the fact that the underlying problems for debt-laiden euro-zone nations still remain. 

In Germany, Europe’s largest economy reported 2010 growth expanded by 3.6%, after a contraction of 4.7% in 2009, supporting hopes that Germany can provide enough momentum to keep the EU afloat while the region addresses its debt crisis.  In London the FTSE reached a 31-month high.

Overnight the FTSE 100 index closed up 0.6% (or 37 points) at 6,051, the German DAX up 1.8% (or 127 points) at 7,069, while in France the CAC was up 2.2% (or 84 points) at 3,966.

Asian Markets

Asian stock markets edged higher yesterday, but they look set for a positive session today following the successful Portugal bond auction.  The Japanese Nikkei index closed flat, despite early gains from exporters resulting from the yen’s recent weakness against the euro. In Hong Kong the Hang Seng had its highest close in 2 months and has rallied 4.7% so far this year.  Chinese stocks were boosted by gains on Wall Street, by Japan announcing it will join the ECB, and by China buying bonds from a eurozone rescue fund to help the PIIGS economies.  The Chinese market gains came from the property, developer and resource sectors.

In China the SSE Composite closed up 0.6% (or 17 points) at 2,821, while in Hong Kong the Hang Seng Index was up 1.5% (or 365 points) at 24,126 and in Japan the Nikkei 225 Index was flat at 10,513.

Commodities

Gold remained below $US1,400 an ounce, while crude oil rose and copper recovered. The Dollar Index was down marginally -1.0% at 80.02 on a higher Euro, while the Australian Dollar last traded higher at 99.58. Commodities were generally higher.

Benchmark crude NYMEX for December delivery was up 0.8% (or $US0.70) to settle at $US91.81. Copper prices continue backing off 2-year highs; copper for December delivery was up 1.5% (or 6.3 cents) at $US4.4000. Gold prices were off all-time highs again, with December gold up marginally 0.1% at $US1,385.30. 

 
Market Summary    

ASX – to open positively
US & UK/Europe – Strongly Higher

 
US ADRs –  Broadly Higher
 
BHP up 2.1% & RIO up; AWC down 1.1%
ANZ up 0.9% & NAB up 0.2%
NEM  down -0.7%, JHX down -1.1%, NWS down 0.4%
 
Commodities Stock Index up 1.0%
Gold Stocks Index down 0.1%
Oil Stocks Index up 1.0%

 

By Michael Hevern
Head of Research

  

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ASX Company News: Boom Logisitcs Announces Queensland Flood Impact

January 13th, 20110

Due to flooding in Queensland, Boom Logistics Limited (BOL) evacuated the following sites in Brisbane yesterday to ensure the safety of its employees allowing them to travel home safely and to secure their family homes: Boom Cranes Brisbane – Pinkenba site; and Boom Sherrin Brisbane – Eagle Farm site. These sites will remain closed today.

Due to the location of Boom’s premises, and based on current weather guidance, it is not anticipated that equipment located on Boom’s premises will be impacted, but Management will continue to monitor this position closely.

Whilst the mines that Boom supports in the Bowen Basin continue to operate, the limitations caused by the weather, including road permit restrictions for our vehicles and those of our customers, mean that our operations are running at 50% of normal capacity.  Based on interaction with our customers, we expect activity in the Bowen Basin to remain subdued throughout January.

A Boom Sherrin depot is located in Toowoomba and whilst this location is secure, the depot is closed while our people support the recovery effort in the region.

Management estimates that the severe Queensland weather in December 2010 has impacted the December result by approximately $1.2 million EBIT across Brisbane and the Bowen Basin in the crane business and the Boom Sherrin operations throughout Queensland.

Whilst the weather was also poor in New South Wales, the financial impacts were not significant due to the location of Boom’s operations.

Given that the weather conditions in Queensland are forecast to continue, Boom is unable to provide an estimate of the likely financial impacts of these current conditions at this time.

www.boomlogistics.com.au

http://www.traderdealer.com.au/Fundamentals/bol

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ASX Company News: Asciano Announces Queensland Flood Impact

January 13th, 20110

Asciano (AIO) advises that its businesses are being impacted by the ongoing severe weather conditions.   In particular, the extreme rainfall across Queensland continues to affect coal rail network availability and has resulted in significant speed restrictions.

The Blackwater coal system remains closed and the Goonyella coal system continues to operate well below capacity.  As a direct result of the current weather conditions a number of Pacific National’s customers have also issued force majeure notices

NSW coal haulage volumes are being impacted by coal chain congestion and the restricted availability of coal.  In particular, weather related issues in the Gunnedah Basin and the Ulan network will likely reduce the average haul length anticipated in NSW during the fiscal year.

Consequently the forecasted growth in revenues for the Pacific National coal division will be affected, however, until the severe weather conditions subside it is not possible to make a full assessment of both the business and financial implications.

Asciano will continue to monitor the conditions in Queensland and NSW and will provide further updates as impacts become clearer.  Further clarity on expectations for the full year will also be provided at the Half Year Results presentation on 23 February 2011.

Commenting on the floods in Queensland, Managing Director and Chief Executive Officer

Mark Rowsthorn said; “Our thoughts go out to all those tragically impacted by the severe weather conditions in Queensland.  We will be doing everything possible to assist employees who are affected by these terrible events”.

www.asciano.com

http://www.traderdealer.com.au/Fundamentals/aio

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ASX Company News: Suncorp Announces Queensland Flood Impact

January 13th, 20110

Suncorp (SUN) provided an update on the tragic storms and flooding that have devastated large areas of Queensland.   Group CEO Patrick Snowball said the thoughts of all Suncorp people were with those Queenslanders who have been impacted and the Group stood ready to support its customers as they commenced the process of rebuilding.

The Group said its comprehensive reinsurance program would limit the cost of claims relating to storm and flood damage in Brisbane and areas of south-east Queensland since 8 January to between $70 million and $90 million.  It is also likely to incur additional reinsurance costs of around $120 million to reinstate multiple covers for the remainder of the financial year.

Releasing an update on the cost of natural hazards for the six month period to 31 December 2010, the Group said it had received approximately 2,500 claims from the first weather system that impacted Central and south-west Queensland from 25 December 2010.  Based on preliminary estimates, Suncorp expects the pre-tax cost of this event to be between $130 million and $150 million. This cost will be included in the Group’s half-year result to 31 December 2010.

As a consequence of the Central and south-west Queensland weather event, as well as other natural hazard events during the course of the first half, the Group expects to have eroded between $220 million and $240 million of retained costs under its aggregate reinsurance program.

The aggregate reinsurance cover, along with the Group’s property catastrophe program, will limit the financial impact of any further natural hazard events, including the current weather system impacting Brisbane and south-east Queensland, over the remainder of the 2010/11 financial year.

www.suncorp.com.au

http://www.traderdealer.com.au/Fundamentals/sun

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Stock Market Analysis: Euro-Zone Sovereign Debt Contagion Fears Ease

January 12th, 20110

US markets closed flat after early weakness, with investors buoyed as concerns eased over euro-zone sovereign debt contagion issues and by initial US corporate earnings showing improvement.  European markets recovered overnight, as investors were encouraged by the European Central Bank (ECB) stepping in to buy euro-area government bonds for the second consecutive day, and by Japan joining with China in committing to buy euro-debt.  Asian equity markets were mixed yesterday, with Chinese economic data causing investor concern about inflation and impending interest rate hikes.

The SPI Futures is above its key weekly pivot level of 4700, and closed up marginally 0.2% (or 10 pts) at 4,713.  The key levels for our index today are 4740 and 4680. M&A activity continues to drive specific stocks.  The ASX is set trade higher, as we had generally mixed leads from overseas markets.  Look for recovery in the energy and mining stocks.  In economic news today there is November Housing Finance Approvals Report and the DEEWR Monthly Leading Indicator of Employment for January.

US Markets

US markets closed flat after early weakness.  US corporate earnings showed improvement, and easing concerns over euro-zone sovereign debt contagion helped investor sentiment.  The earnings season began this week with Alcoa reporting its 4Q earnings beating forecasts and its highest profit in 9 quarters.  The aluminium maker said it expects demand for its products to jump 12 percent in 2011, citing improving auto sales.  Elsewhere two major retailers raised their earnings forecasts, with Sears Holdings Corp saying they expect earnings to be twice as much as analysts forecast and Tiffany’s said better-than-expected holiday sales would push its earnings higher this year.  Bellwethers such as JP Morgan and Intel are also due to report this week.  Gains were spread across the market, with the Telecom sector (down -1.6%) the only member of the 10 industry groups that make up the S&P 500 index to fall.  Other sector performances included rises in Energy up 1.7%, Materials up 0.8%, Healthcare up 0.5% and Financials up 0.4%.

The Dow closed up 0.3% (or 34 points) at 11,672, while in the broader market the S&P 500 index was up 0.4% (or 5 points) at 1,274 and the tech-heavy Nasdaq ended up 0.3% (or 9 points) at 2,717.

European Markets

European markets rose strongly overnight.  Investors were encouraged as the European Central Bank (ECB) stepped in to buy euro-area government bonds for the second consecutive day. Traders were also comforted after Japan said it would buy bonds from a euro-zone rescue fund to help finance an Irish bailout, following similar commitments from China amid fears of a spreading crisis, however concerns lingered over debt-laden Portugal.  China had already expressed its readiness to assist the European PIIGS economies seen as most exposed to a European debt contagion crisis, pledging to buy bonds directly from Spain, Greece and Portugal.  Stocks across Europe rose, however investors remain cautious over the possibility of the need for a bailout of Portugal, for which borrowing rates remain close to record levels, though Portugal is adamant that it does not expect to seek external help.  In London the market rose for the first session in four as the banks recovered from their recent sell-off.  In Germany the market rose for the first session in three.

The FTSE 100 index closed up 1.0% (or 58 points) at 6,014, the German DAX closed up 1.2% (or 85 points) at 6,942, while in France the CAC was up 1.6% (or 60 points) at 3,882.

Asian Markets

Asian markets were mixed yesterday.  Traders were cautious amid growing fears of the euro-zone debt contagon crisis resurfacing, but markets managed to recover from their early sell-offs. The Chinese market rose as the central bank reported M2, the broadest measure of money supply, rose to 19.7 percent in December, the fastest pace since May.  Chinese foreign exchange reserves also climbed to a record last quarter, and lending exceeded the government’s annual target, which will increase pressure on the central bank to tighten policies to rein in liquidity and inflation.

In China the SSE Composite closed up 0.4% (or 12 points) at 2,804, while in Hong Kong the Hang Seng Index was up 1.0% (or 233 points) at 23,760 and in Japan the Nikkei 225 Index was down marginally -0.1% at 10,511.

Commodities

Gold remained below $US1,400 an ounce, while crude oil rose and copper fell. The Dollar Index was down marginally -0.1% at 80.83 on the higher Euro, while the Australian Dollar last traded lower at 98.67. Commodities were generally higher.

Benchmark crude NYMEX for December delivery was up 2.2% (or $US1.97) to settle at $US91.22. Copper prices backed off around 2-year highs, and copper for December delivery was up 2.1% (or 9.1 cents) at $US4.3450. Gold prices were off all-time highs again, with December gold up 0.8% at $US1,380.70. 

 
Market Summary    

ASX – to open higher
US & UK/Europe – Mixed

US ADRs –  Generally Lower
 
BHP up 0.5% & RIO up; AWC down 0.4%
ANZ down 0.4% & NAB down 0.2%
NEM  up 0.8%, JHX up 0.4%, NWS down 1.2%
 
Commodities Stock Index up 1.4%
Gold Stocks Index up 1.4%
Oil Stocks Index up 1.5%

 

By Michael Hevern
Head of Research

 

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ASX Company News: Sedgman Secures $31 million In Coal Contracts

January 12th, 20110

Leading resource sector services company Sedgman Limited (SDM) has announced contracts valued at a total of US$31 million in the emerging global coal region of Mongolia, including the company’s first international operations management contract. Sedgman’s contracts include US$19 million of Engineering, Procurement and Construction Management (EPCM) contracts for the second stage of Energy Resources LLC’s coal handling and processing plant (CHPP) at the UHG mine in the South Gobi region of Mongolia. The contracts follow Sedgman’s initial EPCM contract for the CHPP at the mine’s first stage, UHG 1. The plant was the first to be built in Mongolia. Sedgman has also been awarded a further US$12 million worth of contracts – an operational readiness contract and a three-year contract to manage the CHPP at UHG 1. It will be the Company’s first operations management contract outside of Australia, where Sedgman currently has 11 coal and metals operations contracts.

Sedgman Chairman Russell Kempnich said the contracts were further evidence the Company was successfully delivering on its international expansion strategy. “We are very pleased to be expanding our relationship with Energy Resources in one of the world’s most prospective coal regions,” Mr Kempnich said. “These contracts are very significant for Sedgman. We are very proud of our work on the coal plant at UHG 1, a development which is setting the standard in a region of Mongolia that is forecast to grow rapidly to meet the coal demands of China’s major steel makers. “The additional contracts for the management of the first plant and for EPCM services on the second plant show recognition of our ability to deliver on projects, including those in challenging and remote locations, and our ability to develop strong client relationships which result in repeat business.

Sedgman Limited (SDM) was established in 1979 and is a leading provider of mineral processing and associated infrastructure solutions to the global resources industry. Specialising in the design, construction and operation of coal handling and preparation plants (CHPPs), Sedgman is recognized internationally for its mineral processing and materials handling technologies. The company services the global coal and metalliferous markets by offering innovative Engineering and Operations capabilities. Sedgman won both the Premier of Queensland’s Export Award and the Australian Export Award for the Large Services category in 2010.

www.sedgman.com

http://www.traderdealer.com.au/Fundamentals/sdm

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ASX Company News: NRW Holdings Awarded $50 million Contract For Middlemount Coal Project

January 12th, 20110

NRW Holdings (NRW) is pleased to announce that the Company has been awarded a contract to undertake preliminary works for the Middlemount Coal Project in Queensland. The preliminary contract is to provide for initial operational works for the Middlemount Project until 31 December 2011. During this period, the Company will continue to negotiate with Middlemount Coal over the establishment of a longer term mining contract of a term of up to 5 years. The Preliminary works will have an approximate contract value of $50 million.

In commenting on the award of the preliminary works, NRW CEO Jules Pemberton said “the preliminary contract with Middlemount further strengthens the diversification strategy that NRW has been pursuing in terms of both client and commodity. It is also particularly pleasing for our Queensland team headed by East Coast GM, Shaun Lucas, who led negotiations with Middlemount”. The Middlemount Project now means that NRW will have significant operations in Western Australia, the Northern Territory and now Queensland, as well as in West Africa. The Middlemount Coal Project is a joint development between Macarthur Coal Limited (MCC) and Gloucester Coal Limited (GCL). The Project is located 6km from the township of Middlemount and approximately 270km northwest of Rockhampton.

www.nrwholdings.com.au

http://www.traderdealer.com.au/Fundamentals/nwh

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