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Linc Energy Limited (LNC) said its subsidiary Linc Energy (Alaska), Inc., has signed an agreement with GeoPetro Alaska LLC to acquire onshore oil and gas leases in the Alaskan Cook Inlet Basin. The company said the acquisition of 123,000 acres of oil and gas leases provided a strategic entry point into Alaska with potential to gain future access to an estimated 18 billion tonnes in coal deposits. Linc said it would pay GeoPetro an upfront payment of US$1 million, an additional US$4 million from the proceeds of any oil and gas commercial production revenues generated on the acquired leases and royalties of 7% to 10% on all future production. The company said planning is already underway for a 2010 Alaskan drilling program. Linc said the leases have the potential to generate revenue of up to US$100 million a year from natural gas flows if the planned gas field can be brought to full production.

Lihir Gold limited (LGL) announced production targets of 1.45 million ounces on average per annum for the years 2012 to 2016, up from 960,000oz to 1.06 million oz in the current calendar year. The company also forecast production to increase to an average of 1.51 million ozpa between the years 2017 to 2021.  

Directors' Interest Notices
01 March 2010

Substantial Shareholder Changes 
01 March 2010

Nufarm Limited (NUF) said it was forecasting an ‘acceptable’ profit for the second half of the financial year. Investors appeared to disagree however with Nufarm shares down 75c to $9.00 at 1025 AEDT Tuesday morning.

The comments came from managing director Doug Rathbone at an extraordinary general meeting in Melbourne this morning.

”In the current year, we are forecasting a headline profit of between $120 million and $140 million in the second six months,” Mr Rathbone said.

”We have just completed a detailed internal review and updated forecast and we are now projecting a headline result for the full year – including the impact of material items – of between $80 million and $100 million and an operating result of between $110 million and $130 million.”

Mr Rathbone said that there was a heavy skew of profits towards the first half of the year.

”Of the $80 million headline profit result last year, just $15 million was generated in the second half,” he added.

Those results will reflect the fact that some of the negative impacts that contributed to such a disappointing full year result last year have extended into the first half of the current year. Mr Rathbone said the projected second half recovery was consistent with what the company has been able to achieve in previous years and is based on realistic assumptions.

In Australia Nufarm said it could expect to capitalise on additional demand for crop protection products resulting from very good recent rainfalls in important cropping regions.

NSW Government announced this morning that Tatts Group Limited (TTS) was the successful bidder for NSW Lotteries for a price of $850 million. The Government reportedly received almost $417 million from NSW Lotteries last year alone, including $306 million in royalties, almost $56 million in profit, and another $56 million in dividends.

Meanwhile, under the terms of the agreement, NSW Lotteries Corporation will transfer around $160 million of cash and other assets to the NSW government before completion of the deal, a separate statement said.

In the news wires, NSW Treasurer Eric Roozendaal said this would bring the total value of the  deal to over $1 billion.

"This is a great outcome for the families and taxpayers of NSW," Mr Roozendaal said.

Meanwhile, Tatts chief executive, Dick McIlwain, said the company’s acquisition of NSW Lotteries was a logical and natural expansion of its lottery businesses in Queensland, Victoria, Tasmania, Northern Territory and the ACT.

”Importantly, the NSW Lotteries acquisition presents the opportunity to increase Tatts’ earnings per share before expected one off integration costs of $14M spread over a three year period,” the company said.

Tatts has been given a 40-year lease on running the lotteries, with the transaction expected to complete at the end of March.

Tatts Group shares were down 19c, or 7.7% to $2.29.

Bank of Queensland Limited (BOQ) this morning announced the appointment of current Chief Financial Officer Ram Kangatharan to the newly created position of Chief Operating Officer to oversee the day-to-day operations of the Bank, effective 1 March 2010.

The bank said the in the role, Mr Kangatharan responsibilities would include achieving a cost-to-income ratio of 45% by 2011 and 15% return on equity by 2012.

A search for a new CFO is underway, the bank added.

In other news, the bank said it yesterday it has priced a $1.0 billion 10 March 2015 domestic bond issue, split between $450 million fixed and $550 million floating.

At the close Monday, Bank of Queensland shares were $11.18 each.

Bank of Queensland Limited (BOQ) this morning announced the appointment of current Chief Financial Officer Ram Kangatharan to the newly created position of Chief Operating Officer (COO) to oversee the day-to-day operations of the Bank, effective 1 March 2010. The bank said the in the role, Mr Kangatharan responsibilities would include achieving a cost-to-income ratio of 45% by 2011 and 15% return on equity by 2012. A search for a new CFO is underway, the bank added.

Virgin Blue Holdings Limited (VBA) announced the appointment of former executive general manager of Qantas John Borghetti as the company’s new chief executive officer and managing director, effective May 8, 2010. The appointment follows the resignation of current CEO and co-founder of the company, Brett Godfrey in July 2009. Virgin said that prior to being appointed executive general manager at Qantas in 2003, Mr Borghetti headed the airline’s Global Sales and Marketing operations, including responsibility for the Qantas Holidays group of companies. The company said Mr Borghetti’s current directorships are with Care Australia, Piper Aircraft, The Australian Ballet and Investment Committee Member of Investec Global Aircraft Fund. Virgin said he would be stepping down from the Piper Aircraft board and the Investec Global Aircraft Fund.

Telstra Corporation Limited (TLS) said, in an update on National Broadband Network (“NBN”) and Government Legislation to shareholders, that there are several complex issues about which it awaits clarification from the Government and NBN Co. The nation’s largest telco said such commercial discussions couldn’t be divorced from the current legislative risks the company faces.

Telstra brought two matters to shareholders attention in the open letter.

The first was that the Federal Government’s proposed regulatory reform package for the telecommunications industry looks likely to be debated in the Senate in the second or third week of March, while the second was that last week, the Federal Government released the NBN Co Exposure Draft Legislation that could significantly alter NBN Co’s ‘wholesale-only’ business model.

The company said its position on this Bill has not changed.

“While we support the Government’s National Broadband Network vision and sensible reforms for our industry, we have always said this legislation is likely to destroy shareholder value and makes an agreement with NBN Co and the Government harder to achieve,” Telstra said.

The company said denying it access to spectrum would harm not only shareholders, but also consumers, particularly those in rural and regional Australia.

Telstra also said the powers the legislation gives the ACCC and the Minister send a negative signal to investors in the industry and the country, while functional separation could cost Telstra $1 billion and take five years to implement, damaging customer service and providing no real benefits to consumers.

In relation to the draft legislation that would govern how NBN Co is operated and regulated, the company said it raised for the first time the prospect of NBN Co becoming a Government-funded retailer, not just a wholesale network provider.

“Such an outcome would run counter to the core purpose of the NBN and the Government’s primary policy objective of restructuring the industry to have separate providers for retail and wholesale fixed network services,” Telstra said.

“We are very concerned about this potential change in the Government’s position. If enacted, we would need to factor this into the financial consideration required to achieve an agreement that is in the company’s and your best interests.”

At the close of trade Monday, Telstra shares were trading at $2.94.

Corporate Express Australia Limited (CXP) reported a 9.4% drop in profit for the year to 21 January 2010 to $57.2 million. The courier added that trading conditions were still difficult in the current year. 

“We are not yet seeing any real signs of a sustained upturn in demand, either from major corporate clients or in the middle market,” the company said.

"We don’t expect that to change significantly in the near term.”

The company added that although it had made no acquisitions in the previous year, it would look to acquisitions in its core business area in 2010.

Corporate Express also said it was pro-actively attempting to improve business efficiencies in anticipation of an upturn in business. These include new computer systems and supply chain improvements.
 
Looking at the results for the year, revenue fell 9.3% to $1.16 billion, while EBITDA of $108.2 million was down 5.6%.

Corporate Express’ discretionary products businesses – IT, print and promotional materials, and furniture – were hardest hit, and are down 21% when compared to the previous period.

Commenting on the result, managing director Paul Hitchcock said the past twelve months had been a tough and challenging period, both for the company and for customers.

”Our strengths lie in our robust single-source model, coupled with the fact that what we sell is necessary for our customers to do business, “ Mr Hitchcock added.

The board declared a dividend of 12.5c per share for the six months, bringing the total dividend payout for the twelve months to 31 January 2010 to 22.5c per share, down 15% from the previous corresponding period.

At the close Monday, Corporate Express shares were $4.30 each.

Rio Tinto Limited (RIO) said its divestment programme has passed the US$10 billion mark with the completion of the sale of its Alcan Packaging Food Americas division to Bemis Company, Inc for a total all cash consideration of US$1.2 billion. The miner said it has completed divestments of over US$7 billion since the beginning of 2009 alone.

Chief Financial Officer, Guy Elliott, said the company’s balance sheet has been transformed in the past twelve months on the back of the divestment programme, the rights issues and continued strong operating cash flows.

“The recapitalisation leaves Rio Tinto well placed to consider value adding investment opportunities as they emerge,” Mr Elliott said.

Rio Tinto said that it completed divestments totalling US$3.1 billion in 2008, US$3.7 billion in 2009 and US$3.5 billion in 2010.

At the close of trade yesterday, Rio Tinto shares were trading at $71.40.