Morning News Bites – August 28
Specialised pilots not being allowed to fly in to WA due to the hard border closure could affect iron ore exports out of Port Hedland, Tesla hit a new high overnight and according to one leading analyst we need to rethink where our stocks are with banks not the best option according to Jefferies’ Brian Johnson
Late yesterday Caeneus Minerals has announced that it will commence detailed Aeromagnetic survey to commence first week of September on Mallina Tenements. These tenements are located in close proximity to the northern tenement boundaries of the De Grey Mining Limited’s Shaggy, Mt Berghaus, Scooby and Hemi gold discoveries. According to Caeneus there was a 10 day field orientation visit to Roberts Hill and Mt Berghaus with the aim for making vehicular access for future drilling programs and to review flight survey specifications for the Company’s upcoming airborne magnetic survey, which is as per above.
Essential Metals have identified numerous targets at its Juglah Dome gold project, situated near Silver Lake Resources Daisy complex around 60km south-east of Kalgoorlie. Recent rock chip sampling and compilation of historic exploration has confirmed that numerous drill targets are present within the Project. Managing Director Tim Spencer, said: “We are keen to commence a drill program at Juglah Dome. Multiple exciting gold and VHMS targets have been identified, some of which are considered drill-ready. The Gards Prospect is one such target, where previous drilling by Placer Dome in the late 1990s and early 2000s intersected gold mineralisation, however it was not followed up”.
GWR Group has secured approvals for its C4 Stage 1 iron ore project from DMIRS and the Federal Government Department of Agriculture, Environment and Water. GWR Chairman Gary Lyons said this represents a significant milestone and the strong prices of iron ore give a unique opportunity to GWR. “These approvals represent a significant milestone for the Company and pave the way for the commencement of commercial iron ore production at the Wiluna West Iron Ore Project. Current strong iron ore prices provide a unique opportunity for the Company and the Wiluna West Iron Ore Project, an exceptional, DSO iron ore development project, which will produce a high grade, low impurity iron ore.” he said. C4 Stage 1 project is west of Wiluna in the northern Goldfields of WA.
Announcing their FY details, Boral has reported sales revenue of $5,728 million down 2% on FY2019 and sales revenue from continuing operations of $5,671 million down 1%. EDITDA was down 30% to $710 million and NPAT before significant items of $181 million, down 57% on the prior year. Boral’s new CEO & Managing Director, Zlatko Todorcevski, said: “Boral’s FY2020 results reflect a particularly challenging year. Following the lower than expected first half result from Boral North America, Boral had a difficult start to the second half of FY2020. Boral Australia was impacted by bushfire and flood-related events in Australia, resulting in significantly lower volumes and higher costs. This was quickly followed by COVID-19 disruptions, resulting in higher costs and production curtailments, which substantially reduced earnings for all divisions. “Overall, second half margins were substantially down, as flagged in the Company’s market update in May, due to lower sales and even lower production volumes together with an unfavourable shift in the sales mix and costs”.
Mining, Gas and Oil services provider Civmec has reported Net Profit margin of 4.5%, up from 1.4% in FY19 and also recommends a full year dividend of 1.0 Australian cents, increased by 43% . Revenue was down around 20% but EBITDA was up for the FY around $14m and NPAT was up 149% to $17.5m. According to Chairman James Fitzgerald the year was of consolidation and the order book strengthened “Following a year of consolidation in FY19, Civmec’s order book continued to strengthen in FY20, enabling the Group to grow revenue and profits throughout the year. Strong cashflow from operations allowed the Group to fund the completion of the new Assembly and Sustainment Hall in Henderson Western Australia while also reducing borrowings by $35.7 million during the year. This places the Group in a strong financial position as we enter FY21, with a A$900 million strong order book, an extensively improved balance sheet and a significantly reduced capital investment requirement in FY21. This disciplined approach has allowed us to recommend an increased final dividend payout to 1.0 Australian cents.” he said.