Australian steel maker BlueScope Steel Ltd
(ASX:BSL) expects to report a small loss for the first half of fiscal 2010.
The loss is primarily due, the company says, to the timing lag of improved steel prices flowing through from sales and improved demand.
The company says in the first quarter of the financial year 2010 it is starting to see moderate improvement in demand and prices stabilising in some markets.
BlueScope also commented on the Federal Government’s proposed Carbon Pollution Reduction Scheme, saying it is one of the biggest threats facing the Australian steel industry and itself in particular.
The company says it has grave concerns about the current design of the scheme and says it strongly believes that the cumulative net cost of the current proposal will be highly significant and material.
BlueScope estimates that the cumulative net cost to the company could be as much as $500 million from fiscal 2012 through to fiscal 2020 and potentially up to $1.4 billion if suppliers pass through all their carbon costs.
BlueScope Steel fell into the red in 2009 after four years of profits.
Toll road operator Transurban Group (ASX:TCL) says toll revenue for the September quarter increased 6.8 per cent.
The company says all of its Australian assets reported traffic growth for the quarter, with toll revenue growth exceeding traffic growth on six out of seven roads.
Transurban says proportional toll revenue, including the impact of the CityLink revenue protection provision, came to $206.9 million for the quarter.
Excluding the impact of the CityLink revenue protection provision, revenue was $204.8 million an increase of 7.7 per cent on the prior corresponding period.
On all of its Sydney assets, the company says, weekend growth has been the main driver behind the increases however workday traffic has also had a positive impact on overall growth.
Transurban says all months during the September quarter showed positive growth, contributing to the overall growth for Australian assets.
Although the group posted a loss in 2009, the loss was narrower than the previous four years.
Developer and operator of resource related projects Felix Resources Ltd (ASX:FLX) says its suitor Yanzhou Coal Mining Company is to resubmit its takeover application to the Foreign Investment Review Board.
Felix says the Foreign Investment Review Board has not yet made a decision regarding the application and that the Chinese company will be re-submitting the application today.
This is the second time that Yanzhou has resubmitted its application to the review board, however Felix says the decision is not expected to delay the transaction timetable.
There are reports that the Foreign Investment Review Board is struggling with a pile of investment requests from Chinese companies for Australia’s mining sector, with a number of companies recently asked to resubmit their applications.
Felix Resources 2008 net profit was by far its best in five years, recording $188.2 million.
Australian engineering, development and operating company GRD Ltd (ASX:GRD) says its engineering company GRD Minproc has been engaged by Kentor Gold Ltd (ASX:KGL) to undertake a definitive feasibility study into the high grade Andash gold-copper project.
Australian gold explorer, Kentor says Andash is targeted for production in 2011 at the average annual rate of 60,000 ounces of gold and 5,000 tonnes of copper for eight years.
GRD Minproc will update and optimise the study by March 2010, with the aim of improving gold recovery and concentrate grades.
The Andash project is located in the Tien Shan Gold Belt in central Asia.
Kentor holds an option to purchase an 80 per cent interest in Andash.
Kentor managing director Simon Milroy says the company’s financial, technical and legal due diligence on Andash has shown the project to be economically robust and technically feasible.
Kentor Gold has posted net losses in the last five years, and GRD reported a loss of $62.2 million in 2008.
