June 17: Morgans is tipping a big profit for Domino’s and backed the company’s decision to take over its counterpart in Taiwan.
Domino’s shares have been climbing this year and the fast food giant is now worth $10.1 billion making it Queensland’s second biggest listed company.
Morgans said the playbook for Taiwan will be similar to DMP’s other regional acquisitions – build sales velocity and stores/scale. Its proximity to Japan will allow for sharing of marketing/operational functions to potentially turbo-charge growth.
“We forecast a strong year of growth, EBIT +31.6 per cent with Japan the largest growth driver given its extremely strong first half,’’ Morgans said in a client note.
“Following a strong re-rate in recent months and c45x FY22F P/E, we lower our rating to Hold. However we continue to view this global growth story favourably.
It is forecasting an EPS increase of between 0.7 per cent and 1.3 per cent in FY22/23 and more like 4 per cent in FY24/25.
Three in train shortlist
June 17: The State Government has shortlisted three train manufacturers to enter the next phase of its Rollingstock Expansion Program.
Train manufacturers Alstom, CAF and Downer Rail have been shortlisted to manufacture the first 20 trains of the new fleet in a purpose-built Maryborough manufacturing facility.
Transport and Main Roads Minister Mark Bailey said it builds on the 283 jobs saved by the Palaszczuk Government in 2017, and all up delivers a $1 billion guaranteed pipeline of train building work in Maryborough.
RPM’s ESG buy
June 16: RPMGlobal has bought ESG services company Nitro Solutions for $2.1 million.
Managing director Richard Mathews said it was just the start of the company’s ESG journey and intended to harness the knowledge of the Nitro team to identify software products that could either be acquired or built to service the growing sector.
Bass Metals consolidates
June 16: Junior metals company Bass Metals is asking for shareholder approval for a name change to Greenwing Resources and a consolidation of its shares on a one for 50 basis.
The company is heavily involved in materials for batteries and intends to build a portfolio of lithium assets. It is also continuing to develop the Graphmada mining complex and developing specialty carbon and advanced material products from its natural flake concentrates.
It is currently doing due diligence on the lithium brine project in Argentina.
Bowen bullish on Hillalong Sth
June 16: Bowen Coking Coal said there had been significant results from its exploration at the Hillalong South project which included thick intersections which could pave the way for another open cut project with high quality coking coal.
Director Matt Latimore said there was a potential to produce a mid-volatile matter coking coal which would complement other products in Bowen’s portfolio.
QEM moves on pilot plant
June 16: QEM has finalised the design of its bench scale pilot plant for its vanadium and oil shale project at Julia Creek.
The company has signed a purchase order and expects a construction agreement will be signed next month. It expects the pilot plant to be operational in the first half of next year.
It is also progressing its study of green hydrogen to be used for its own energy needs as well as surrounding mining projects.
Collection House new CFO
June 16: Troubled debt collector Collection House has appointed Peter Gunn as its new chief financial officer.
Gunn has been working within Collection House since early 2020 and will take over from Lynda Morris.
New Hope lifts forecasts
June 15: New Hope said the increase in thermal coal prices and demand meant its earnings before interest, tax, depreciation and amortisation (EBITDA) would increase by $60 million to $399 million for the 2021 full year.
Stronger cash generation would also mean its debt ratio would fall 0.5 times.
Storms cost Suncorp $50 million
June 15: Suncorp said it had received 3750 claims related to the recent Victorian storms and the maximum potential loss was $50 million.
Its natural hazard costs for the year to date were $955 million, about $40 million above the year-to-date allowance of $915 million.
June 15: Metallica Minerals has applied for a mining lease over the Cape Flattery silica sand deposits in north Queensland.
The mining lease area contains a resource of 38 million tonnes over 616 hectares.
Executive chairman Theo Psaros said the application reflected the company’s confidence in the project.
It’s expected the drilling program will be completed July.
Wharf St Sale
June 15: Land and Homes Group has sold its Wharf St property for $19.5 million.
Settlement is expected to be completed in 30 days.
The company said the board resolved to proceed with the deal to enable it to focus on the development of its property in Barry St, Fortitude Valley.
June 15: Sugar Terminals Ltd has started a $22 million roof replacement at its Townsville bulk sugar terminal.
More than 50 people are working on the project replacing 415 tonnes of roof over an area of 35,000 sq m.
The project is expected to be completed in September 2022.
Explorer gets cash
Aeris Resources has raised $50 million on the market to accelerate exploration at its Queensland and NSW projects.
The company, which also said it was focusing on mergers and acquisitions, made a placement to existing institutional and sophisticated investors at 17.5 cents a share, a 14.6 per cent discount to the June 9 closing price.
Executive chairman Andre Labuschagne said it was an exceptional outcome and provided balance sheet strength.
“In full year 2022 we will continue development of the Budgerygar underground mine. We are also finalising plans to commence development of Avoca Tank and a cut-back of the open pit at Murrawombie,” he said.
“The strong institutional support for the placement, I believe, is a reflection of not only the transformation of the company over the last 12 months but also an endorsement of our strategy focusing on copper and gold and adding value though organic and acquired growth.”
Ballymore looks for $11m
Queensland explorer Ballymore Resources is heading for a $11 million initial public offering and an ASX listing with former Stanmore Coal managing director Nick Jorss at the helm.
The company has Queensland tenement holdings in gold, silver, copper, lead and zinc.
It’s issuing 55 million shares at 20 cents a share to accelerate exploration and development.
Former Stanmore company secretary Duncan Cornish is also on board as chief financial officer and company secretary.
Metro signs up Xinfa
Metro Mining has signed two new offtake agreements with China’s aluminium producer Xinfa for bauxite from the Cape York mine.
Metro said Xinfa’s total commitment was now for 7 million metric dry tonnes of bauxite. It aligns with Metro’s stage two expansion plans.
Xinfa was a foundation customer and its original commitment allowed for the development of the mine.
Metro has previously said it was in negotiations for bridging finance.
Cash for Duke
Duke Exploration said it had raised $8 million through a placement of 2.2 million shares at 36 cents a share.
It will also give retail shareholders the option to invest through a share purchase plan to raise another $3 million.
The funds will be used for exploration at its projects.Jump to next article