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RBS – Round Up – 310310

Carnarvon Petroleum Limited (CVN) said its net 2P oil reserves have increased by 9 million barrels to 24.5 million barrels as at 31 December 2009, an increase of 48%. The company said the increase was a direct outcome of a successful 2009 exploration program, which resulted in the discovery of the Bo Rang North oil fields in March 2009. Carnarvon said after allowing for production in the 2009 calendar year of 1.1 million barrels net to Carnarvon, the net increase in oil reserves was 2.7 million barrels (1P), 7.9million barrels (2P) and 20.2 million barrels (3P). The company said reserves replacement was 3.4 times on 1P reserves and 8.1 times on 2P reserves based on Carnarvon’s 2009 calendar year oil sales of approximately 3,000 barrels per day net.

Atom Energy Limited (AXY) said that resource modeling completed by independent consultants, Ravensgate Mining, had identified 505,000 ounces of gold from 10.7Mt @ 1.47g/t representing an increase in the total resource of 38% at a 0.6g/t cut-off. The increase related to two projects, Excelsior and Zoroastrian at the company's operations in the Kimberley region of Western Australia.

Gloucester Coal Limited (GCL) shares were placed in trading halt Wednesday morning as a result of a pending announcement by Macarthur Coal. Macarthur, who recently made a takeover offer for Gloucester, announced today that its shares would be halted as a result of receiving a takeover offer from an undisclosed third party. Gloucester said the trading halt would remain in place until the earlier of the commencement of normal trading on the second trading day after the trading halt commenced and when it makes an announcement to the market and requests that the trading halt be lifted.

Tanami Gold NL (TAM) said it has finalised the $22 million acquisition of the Central Tanami Gold Project from Newmont Mining Corporation after executing formal documentation yesterday. The company said it views the acquisition as a key milestone in its growth strategy to becoming a 200,000oz per annum mid-tier gold producer within two years. Tanami satisfied all key conditions of the acquisition agreement, including receipt of Newmont Board approval and finalisation of a $37 million loan agreement to underpin the transaction. The project includes a JORC Code compliant Resource of 516,000oz, the 1.2Mtpa Central Tanami treatment plant and extensive support infrastructure, a 2,000 kilometre squared exploration package comprising 21 Mineral Leases and 16 Exploration Licences, and 2.1Moz historic production endowment within the Mining Lease area.

MacArthur Coal Limited (MCC), itself in the process of a takeover of Gloucester Coal Limited (GCL), this morning entered a trading halt as the coal miner received interest from a third party bidder.

Reports have already surfaced suggesting the world's largest private-sector coal company Peabody Energy Corp. made the offer.

In an ASX statement the coal miner said it had requested a halt "pending the release to the market of an announcement regarding an approach by a third party for a controlling interest".

Macarthur Coal shares are expected to remain in a trading halt until after Easter.

National Australia Bank Limited (NAB) has agreed to terms with Asia Pacific Holdings Limited (AXA) and its French parent AXA to purchase the Australian and New Zealand businesses of AXA APH for $4.6 billion as part of a proposal to acquire all of the shares in AXA APH. NAB said as part of the proposal AXA has agreed to purchase the Asian businesses of AXA APH for $9.4 billion.

The company added that it would not be required to pay the $700 million AXA APH A&NZ debt owed to AXA.

NAB said it would acquire AXA APH’s A&NZ wealth management and insurance businesses, including the advice businesses of ipac, Genesys, AXA Financial Planning and Charter Financial Planning.

The company will also be able to use the AXA trademark in Australia and New Zealand for two years to assist with transition.

NAB said subject to agreeing new joint venture arrangements, it would retain AXA APH’s 50% interest in the AllianceBernstein Australia joint venture.

AXA APH chairman, Rick Allert, said the independent directors continue to unanimously recommend the proposal, in the absence of a superior proposal and subject to the opinion of an independent expert.

The proposal remains subject to AXA APH minority shareholder approval among other conditions and regulatory approvals, including the approval of the Federal Treasurer and that there is no objection to the merger from the ACCC or APRA.

NAB Group CEO, Cameron Clyne, said MLC and AXA Australia and New Zealand collectively hold more than $149 billion in funds under administration and Management.

“The proposal agreed today provides the opportunity to enhance the access to competitive wealth management products and services within Australia and New Zealand,” Mr Clyne said.

”It is also an attractive, strategically aligned opportunity that enhances NAB’s activities in the growing wealth management industry.”

NAB and AXA APH said minority shareholders would have the option to receive either cash of $6.43 per AXA APH share or $1.59 in cash and 0.1745 NAB shares per AXA APH share.

The company added that the shareholders who elect to receive the cash and NAB share consideration under the proposal will also be entitled to receive the value of NAB’s 2010 interim dividend.

At the close of trade Tuesday, NAB shares were trading at $27.70, while AXA APH shares were trading at $6.35.

US stocks traded both sides of the gain line Tuesday before finishing the day slightly higher. Once again, positive economic data was counter balanced by sovereign debt issues emanating from Europe.

In economic news, the Conference Board Consumer Confidence index rose to 52.5 in March from 46.4 in February, beating expectations.

A strengthening US dollar also took the shine off companies which trade in commodities, as well as US companies which traded internationally.

The Dow Jones rose 11.56 points, or 0.11%, to 10907.42, the S&P 500 rose 0.05 points, or less than 0.01%, to 1,173.27 and the NASDAQ picked up 6.33 points, or 0.26%, to 2,410.69.

Among the banks, Citigroup retreated 2.2%, with just about all its banking peers also lower.

Bank of America fell 1.6% and Wells Fargo dropped 0.8%. Goldman Sachs lost 1.5%.

Among tech stocks, Apple rose 1.5% to all-time highs after the company said it was making another version of the iPhone that would be available to an expanded set of customers.

Microsoft rose 0.6%, while Google tacked on 0.8%.

Blockbuster lost 10.4% as the movie rental chain stumbles towards bankruptcy and de-listing from the NYSE.

Fast food chain McDonald’s rose 0.3% after saying it was aiming to double its presence in China within three years with the addition of 900 new outlets.

COMEX gold for May delivery fell US$6.80 to US$1,103.50 per ounce.

Exxon Mobil retreated 0.4%, while smaller rivals Chevron and ConocoPhillips eked out 0.1% and 0.2% gains respectively.

NYMEX light crude oil for May delivery rose 20c to settle at $82.37 a barrel.

European Markets

European stocks declined modestly Tuesday. The catalyst, this time, was a downgrade to Iceland’s credit rating.

The UK benchmark FTSE 100 lost 38.34, or 0.67% to 5,672.32. The French CAC40 dipped 13.25, or 0.33% to 3,987.41, while the German DAX retreated 14.40, or 0.23% to 6,142.45.

In the UK, Barclay’s slumped 2.4%, while BNP Paribas retreated 0.9%. Lloyds and HSBC gave up 3% and 2.1% respectively.

Irish bank Allied Irish sank 8.8%, bringing two-day losses to nearly 30% after saying it would need billions more in support to stay afloat.

Bucking the trend, Swiss bank UBS added 3% after the bank posted revenues ahead of expectations for the last quarter.

Among the miners, Rio Tinto retreated 0.4%, while Anglo American and BHP Billiton were virtually unchanged.

Kazakhmys shed 0.4%.

Energy stocks BP and Royal Dutch Shell lost 0.7% and 0.6% respectively.

Carphone Warehouse Group in the UK climbed 4.1%, adding to a rise of 7.3% yesterday, following an upgrade to the stock.

Japanese Markets

The Nikkei rallied to its highest close since October 2008 on the back of an increase in US consumer spending and data that revealed Japan’s jobless rate remained at its lowest level in 12 months. However, the country’s industrial production dropped a larger than expected 0.9% in February.

The Nikkei 225 climbed 110.67, or 1.01% to 11,097.14.

Canon put on 2.5% to its highest close in 18 months. Sony and NEC Corp added 2% and 2.9%, while automaker Nissan rose 2.3%.

Konica Minolta Holdings gained 3.5% after the filmmaker received a broker upgrade.

Commodities trader Mitsubishi Corp. jumped 3.9% on a rise in commodity prices.

Steelmakers Nippon Steel Corp. and JFE Holdings Inc. advanced 2.5% and 3.2% respectively.

Aluminium producer Nippon Light Metal Co. closed 5.3% dearer.

Kobe Steel rose 2.6% after tightening its loss forecast.

On the downside, Mizuho Financial Group lost 1.6%.

Hong Kong Markets

Hong Kong stocks gained ground Tuesday on general widespread optimism over the strength of the economy. Gains were driven by the consumer stocks, while banks also rallied.

The Hang Seng added 137.36, or 0.65% to 21,374.79.

Bank of China and heavyweight lender ICBC put on 1.2% and 2.3% respectively.

HSBC, which makes up around one-sixth of the Hang Seng, put on 0.2%

Li & Fung, clothes supplier to Wal-Mart, strengthened 2.1%.

European focused Esprit Holdings climbed 4.4%.

Foxconn International Holdings, the world’s largest third party mobile phone maker, gained 1.2% and shoemaker Yue Yuen was 1.9% above the line.

A severe drought in parts of China has put the spotlight on the resilience of hydro-electric power, and in turn helping coal stocks rally. China Shenhua Energy, the nation’s biggest coal producer, put on 1.6%.

Smaller rival China Coal Energy gained 1.8%.

Elsewhere, casino operator SJM Holdings spiked 7.5% to record highs after saying profit rose 14% last year.

The Australian stock market added 0.4% Tuesday as it continues to move towards 2010 highs. The big miners made strong gains, supported by industrial heavyweights and mid-cap miners.

At the end of the day, the All Ords added 19.6 to 4,926.8, while the ASX/200 advanced 19.5 to 4,916.8. Around 2.3 billion shares worth around $5.4 billion had changed hands.

The Materials and Resources sector put on 1.6% following a rise in base metals prices in London. The price of copper rose 3.4% to an 11-week high due to an increase in demand from China.

BHP Billiton gained $1.03, or 2.4% to $44.41 as it reached agreement with a significant number of customers throughout Asia for shorter-term iron-ore contracts.

Rio Tinto added 86c to $79.25 a day after a Shanghai court found mining executive Stern Hu guilty of commercial crimes and sentenced him to 10 years in prison.

Fortescue rallied 14c, or 2.9% to $4.96, while metals recycler Sims Metal rose 3.4% to $22.01

Mount Gibson Iron and Gindalbie jumped 4.3 and 7.3% respectively. The latter finalised an off-take agreement with JV partner Ansteel at the company’s Karara Iron Ore Project in Western Australia.

Among the small-caps, Doray Minerals spiked 173.3% after saying new gold intersections found at its Andy Well project in Western Australia were ‘incredible’.

Ferrowest shares surged 33.3% after reporting a 390% increase in inferred resources at its Yalgoo Iron Project in Western Australia.

Nufarm slumped 6.5% to $8.12 after posting a $40 million loss for the six months to the end of January after the close of trade yesterday. The agricultural chemical company is anticipating turning this loss into a full-year profit of between $80 million to $100 million.

The stock also received two broker downgrades in reports this morning.

The Energy sector advanced 0.3% as crude futures climbed 2.7% in New York overnight due to renewed confidence of an economic recovery and a weakening greenback.

Woodside and Santos were both 0.5% stronger, while Oil Search was 0.8% higher.

Uranium miner Paladin climbed 1% to $4.00. Coal miner New Hope added 9c to $5.06.

Origin Energy shed 12c to $16.64. 

Karoon Gas shares rallied 17c, or 2% to $8.47. The company’s share price has spiked by around 87% since a low in early February.

Similar to their global peers, financial stocks struggled as the Banks and Financials sector weakened 0.1%.

Looking at the majors, ANZ and Westpac were 0.1% and 0.2% higher.

NAB shares were halted at the request of the company and pending an announcement regarding the status of contractual negotiations to acquire the Australian and New Zealand businesses of AXA Asia Pacific.

Citigroup also upgraded its rating on the bank’s stock to a ‘buy’.

CBA fell 27c, or 0.5% to $56.77.

AXA APH shares were also halted, while AMP gained 7c, or 1.1% to $6.38.

Lend Lease put on 8c to $8.80 after completing its fully underwritten $806 million equity raising by way of a 5 for 22 single Entitlement Offer and the result of the Shortfall Bookbuild.

Property Trusts edged 0.4% higher in a mixed day for the sector.

Meanwhile, broad gains from Industrials stocks sent the sector 0.8% into the black.

Leighton and Brambles rose 1.3% and 0.7% to $39.28 and $7.40 respectively.

Boart Longyear climbed 6.6% to 32.5c.

CSR slid 2c to $1.67 after appealing against a court decision yesterday that had halted plans to divide the company into two.

Consumer Staples countered one another with the sector up 0.2%. 

Wesfarmers added 27c to $31.72, while Woolworths lost 14c to $28.24.

Losses of between 1% and 1.2% from sector majors Newscorp, Crown and Tatts sent the Consumer Discretionary sector 0.2% below the gain line.

Retailer JB Hi-Fi rose 28c, or 1.4% to $20.70, easily outperforming it peers.

APN News & Media lost 2c to $2.30 after the trans-Tasman media company said that trading was returning to pre-GFC levels.

Ramsay Health Care lost 15c to $13.83 as the company finalised its acquisition of a 57% interest in leading French private hospital operator Groupe Proclif SAS after meeting the requisite regulatory approvals. The company also reaffirmed guidance for core NPAT growth of 18%-20% for the group for FY10.

Ansell shed 43c to $12.00 following a broker downgrade from Goldman Sachs.

The Healthcare sector rose 0.1%.

Among the telcos, Telstra lost 4c, or 1.3% to $3.02. The Telecommunications sector overall was down 1.2%.

Around the region, the Nikkei 225 advanced 76.8 to 11,063.3, while the NZSE50 slid 1.5 to 3,249.6. The Hang Seng added 127.9 to 21,365.3 and the Strait Times Index fell 0.1 to 2,929.0

Spot gold was trading at US$1,110.00 per ounce, while the Aussie was buying US$0.9188. 

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Ramsay finalises French acquisition
Ramsay Health Care said it has finalised its acquisition of a 57% interest in leading French private hospital operator Groupe Proclif SAS after meeting the requisite regulatory approvals. On 11 January this year Ramsay announced it had agreed to purchase the majority stake in Proclif for €87 million, marking Ramsay’s first acquisition in Continental Europe.

At the close, Ramsay shares were down 15c to $13.83.

NAB shares halted
National Australia Bank requested its shares be placed in trading halt due to a pending announcement regarding the status of contractual negotiations to acquire the Australian and New Zealand businesses of AXA Asia Pacific Limited (AXA). NAB has been in talks with AXA APH French parent, AXA SA, with a deadline for finalising a deal passed yesterday.

At the finish, NAB shares are halted at $27.70, while AXA APH shares were halted at $6.35.

Gindalbie finalises off-take contract
Gindalbie Metals announced the finalisation of a long-term off-take contract with its joint venture partner, Ansteel, covering the life-of-mine production from the Karara Iron Ore Project in Western Australia. The company said the offtake agreement is worth approximately US$580 million a year, increasing to more than US$2.1 billion a year at the project’s potential production rate.

At the bell, Gindalbie shares were trading up 8c to $1.18.

Nufarm posts $40m loss, outlook positive
Nufarm reported a loss of nearly $40 million on the back of $35.8 million in writedowns, mostly associated with the company’s glyphosate losses. Looking ahead the company said a recovery was on the way and it was anticipating turning this loss into a full-year profit of between $80 million to $100 million.

At the end of the day, Nufarm shares were trading down 56c to $8.12.

AWB signs MoU and forms JV with Gavilon
AWB and Gavilon LLC announced they have signed a non-binding Memorandum of Understanding regarding the sale of AWB Geneva and the formation of a 50:50 joint venture of the AWB Australian Commodity Management business. AWB said the signing of the MoU paves the way for the transaction to be completed by June 2010.

At the close, AWB shares were up 5.5c to 95c.

AWB Limited (AWB) and Gavilon LLC announced they have signed a non-binding Memorandum of Understanding (“MoU”) regarding the sale of AWB Geneva and the formation of a 50:50 joint venture of the AWB Australian Commodity Management business. AWB said the signing of the MoU paves the way for the transaction to be completed by June 2010.

AWB, managing director, Gordon Davis said the consideration for the transaction would be formulated on the basis of book value plus a premium and is expected to release significant capital for AWB.

“By partnering with a significant global commodities company in Gavilon, the proposed transaction will improve the value proposition to Australian producers and our domestic and international customers as well as enhance the competitive position of AWB’s Commodities Management activity,” Mr Davis said.

Mr Davis added that the transaction aligned with AWB’s strategy to create a simpler lower risk Australian based regional agribusiness with significant scale, scope and more sustainable earnings.

Gavilon’s president and CEO, Greg Heckman, said the proposed purchase of AWB Geneva along with the joint venture in Australia, provides an opportunity for Gavilon to expand its global footprint with a well-established Australian agribusiness.

As at 1408 AEDT, AWB shares were up 6.5c to 96c.

The Australian sharemarket moved higher Tuesday morning after Wall Street was boosted by a rise in consumer spending. Resource stocks led gains on the back of a rise in commodity prices as most sector hovered close to the gain line.

At noon, the All Ords added 13.2 to 4,920.4, while the ASX/200 advanced 13.0 to 4,910.3. Around 940 million shares worth around $2.2 billion had changed hands.

The Materials and Resources sector put on 1% following a rise in base metals prices in London. The price of copper rose 3.4% to an 11-week high due to an increase in demand from China.

BHP Billiton gained 58c, or 1.3% to $43.96 as it reached agreement with a significant number of customers throughout Asia for shorter-term iron-ore contracts.

Rio Tinto added 87c to $79.26 a day after a Shanghai court found mining executive Stern Hu guilty of commercial crimes and sentenced him to 10 years in prison.

Fortescue rallied 11c, or 2.3% to $4.93, while metals recycler Sims Metal rose 2.6% to $21.85.

Gold stocks were flat despite a modest rise in the price of the precious metal overnight.

Nufarm slumped 3.9% to $8.34 after posting a $40 million loss for the six months to the end of January after the close of trade yesterday. The agricultural chemical company is anticipating turning this loss into a full-year profit of between $80 million to $100 million.

The stock also received two broker downgrades in reports this morning.

The Energy sector advanced 0.3% as crude futures climbed 2.7% in New York overnight due to renewed confidence of an economic recovery and a weakening greenback.

Woodside, Oil Search and Santos were between 0.5% and 0.7% higher.

Coal miner New Hope gained 1.4% to $5.04, while uranium miners Paladin and Extract Resources climbed 1.8% and 2.1% to $4.03 and $8.10.

Origin Energy shed 10c to $16.66. 

Similar their global peers, financial stocks struggled as the Banks and Financials sector weakened 0.1%. Australia's major investment banks reportedly witnessed a 68% fall in fees during the first three months of the year.

Looking at the majors, ANZ, CBA and Westpac were between 0.1% and 0.2% in the red.

NAB shares were halted at the request of the company and pending an announcement regarding the status of contractual negotiations to acquire the Australian and New Zealand businesses of AXA Asia Pacific.

Citigroup also upgraded its rating on the bank’s stock to a ‘buy’.

AXA APH shares were also halted, while AMP gained 10c, or 1.6% to $6.41.

Lend Lease put on 12c to $8.84 after completing its fully underwritten $806 million equity raising by way of a 5 for 22 single Entitlement Offer and the result of the Shortfall Bookbuild.

Property Trusts edged 0.25 higher in a mixed morning for the sector.

Meanwhile, broad gains from Industrial stocks sent the sector 0.7% into the black.

Leighton and Brambles rose 1.3% and 0.8% to $39.28 and $7.41 respectively.

Boart Longyear climbed 4.9% to 32c.

CSR slid 1.5c to $1.675 after appealing against a court decision yesterday that had halted plans to divide the company into two.

Consumer Staples countered one another with the sector up 0.1%. 

Wesfarmers added 16c to $31.61, while Woolworths lost 17c to $28.21.

Losses of between 1.1% and 1.4% from sector majors Fairfax, Newscorp and Crown sent Consumer Discretionary 0.3% below the gain line.

Retailers JB Hi-Fi rose 27c, or 1.3% to $20.69.  

Ramsay Health Care lost 8c to $13.90 as the company finalised its acquisition of a 57% interest in leading French private hospital operator Groupe Proclif SAS after meeting the requisite regulatory approvals. The company also reaffirmed guidance for core NPAT growth of 18%-20% for the group for FY10.

Ansell shed 32c to $12.11 following a broker downgrade from Goldman Sachs, which now rates the stocks at ‘hold’.

The Healthcare sector fell 0.1%

Around the region, the Nikkei 225 advanced 22.8 to 11,009.3, while the NZSE50 gained 9.5 to 3,260.6.

Spot gold was trading at US$1,108.45 per ounce, while the Aussie was buying US$0.9168. 

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Ramsay finalises French acquisition
Ramsay Health Care said it has finalised its acquisition of a 57% interest in leading French private hospital operator Groupe Proclif SAS after meeting the requisite regulatory approvals. On 11 January this year Ramsay announced it had agreed to purchase the majority stake in Proclif for €87 million, marking Ramsay’s first acquisition in Continental Europe.

At lunchtime, Ramsay shares were down 5c to $13.93.

NAB shares haltedNational Australia Bank requested its shares be placed in trading halt due to a pending announcement regarding the status of contractual negotiations to acquire the Australian and New Zealand businesses of AXA Asia Pacific Limited (AXA). NAB has been in talks with AXA APH French parent, AXA SA, with a deadline for finalising a deal passed yesterday.

NAB shares are halted at $27.70, while AXA APH shares were halted at $6.35.

Gindalbie finalises off-take contract
Gindalbie Metals announced the finalisation of a long-term off-take contract with its joint venture partner, Ansteel, covering the life-of-mine production from the Karara Iron Ore Project in Western Australia. The company said the offtake agreement is worth approximately US$580 million a year, increasing to more than US$2.1 billion a year at the project’s potential production rate.

At midday, Gindalbie shares were trading up 3.5c to $1.135.

Nufarm posts $40m loss, outlook positive
Nufarm reported a loss of nearly $40 million on the back of $35.8 million in writedowns, mostly associated with the company’s glyphosate losses. Looking ahead the company said a recovery was on the way and it was anticipating turning this loss into a full-year profit of between $80 million to $100 million.

By noon, Nufarm shares were trading down 33c to $8.35.

Ramsay Health Care Limited (RHC) said it has finalised its acquisition of a 57% interest in leading French private hospital operator Groupe Proclif SAS after meeting the requisite regulatory approvals. On 11 January this year Ramsay announced it had agreed to purchase the majority stake in Proclif for €87 million, marking Ramsay’s first acquisition in Continental Europe.

The company said Proclif is the second largest hospital group in the Paris region, comprising nine acute hospitals in the fields of medicine, surgery and obstetrics and generating annual revenue of approximately €133 million.

The remaining 43% interest in Proclif is held by Crédit Agricole Assurances personal insurance arm Predica.

Ramsay said as part of the acquisition it has entered into a long-term partnership with Predica to grow the business and build a portfolio of hospitals in the French acute care sector.

Ramsay managing director, Christopher Rex, said the market dynamics are very attractive in France, which has an integrated private and public hospital system, a strong regulatory framework and sustainable funding regime.

“Of particular importance to Ramsay is the highly fragmented nature of the French hospital market which has more than 400 small private operators,” Mr Rex said.

“This presents significant opportunities for Ramsay to expand its quality portfolio of hospitals in France and apply its proven model and management expertise.”

The company expects the acquisition to deliver a small accretion to core EPS by FY12, with more significant EPS accretion anticipated as future acquisitions are made.

Ramsay also reaffirmed guidance for core NPAT growth of 18%-20% for the group for FY10, translating to core EPS growth of 10%-12%.

As at 1038 AEDT, Ramsay shares were unchanged at $13.98.

Directors' Interest Notices
29 March 2010

Symbol	Shareholder	+/-	Prior	Now
BBG	Paul Naude		1,348,015	1,278,015
CXP	Paul Warren Hitchcock		10,000	153,590
CXP	Grant Logan		36,212	186,719
CYG	Roger Baden Flynn		195,035	189,574
CYG	John Harold Nickson		92,492	94,840
CYG	Barry Frederick Nazer		101,532	104,420
LEI	Dieter Siegfried Adamsas		246,851	226,851
LEI	Wallace Macarthur King		336,660	320,000