Woodside Petroleum is bracing for "unprecedented circumstances", global testing giant ALS is marshaling its financial forces to survive the impact of COVID-19 while South32 plans slash capital expenditure and has suspended its on-market buyback.
The December quarter was soft, Credit Suisse observes, amid weak manganese prices. The main change to estimates is driven by an expected effective tax rate of 75-85% in the first half. There are no available tax benefits to use from South Africa Energy Coal.
Upon returning from a company organised Illawarra site visit, Citi analysts note that while coal quality is first class, costs and sustaining capital are high. The fixed cost base is high, the analysts emphasise.