Daily FNArena News - Australia

Brokers are focused on the Zodiac discovery as Northern Star Resources accelerates its growth plans and exploration.

Western Areas generated positive cash flow and sustained record production in the December quarter but most brokers are wary about the upside, given the nickel price implied in valuations.

Breathing disorder therapist ResMed impressed brokers with its December quarter result but several suspect that much of the potential is already factored into the current share price.

Several brokers have surveyed the implications for Australasian funeral operator, InvoCare, in the wake of its UK peer, Dignity, deciding to protect market share by reducing prices.

Whitehaven Coal’s December quarter sales and production disappointed brokers, despite buoyant prices, amid increased costs at the Narrabri mine that will now continue into perpetuity.

South32 has upgraded production guidance for South African manganese by 8% as it flexes output to take advantage of higher prices. The December quarter also revealed weakness at Worsley and Cannington.

BT Investment Management’s business made a solid start to FY18 although net outflows, largely from previously disclosed mandate losses, raise a few concerns regarding the outlook.

Pilbara Minerals has negotiated the sale of run-of-mine ore from Pilgangoora and brokers welcome the deal as an opportunity to generate some cash while the project is developed.

Caltex has guided to softer than expected profit for 2017 but brokers agree the key issue for 2018 will be the reaction from BP/Woolworths to the ACCC decision.

The ACCC has opposed BP’s proposed acquisition of the Woolworths petrol business. Brokers suggest a capital return for Woolworths is now less likely and Caltex is less likely to lose -$150m in earnings.