☕️Mining Crisis

Good morning.

Oh to have been a fly on the wall at last week’s critical minerals crisis talks. A legion of Australia’s major miners converged on Perth to make pleas and demands of federal resource minister, Madeline King, and WA state minister for mines, David Michael, as they struggle to weather a severe supply glut. Capital Brief reports that while infrastructure hubs and tax credits were high on the wish list, some industry sources fear that the initiatives would be too little, too late.

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Market movers

Gold Road Resources was the worst performer on the ASX 200 during trading Monday, falling 18.4% to $1.40. The gold miner reported disappointing Q4 2023 results, flagging a drop in gold production at its Gruyere mine in WA and downgrading its full year guidance. Bellevue Gold, conversely, rose almost 5.5% following news that it is nearing breakeven point.

The quick sync

• Canva scores new big name backers ahead of its secondary share sale, leaving early investors questioning whether the sale is pricing the company too low. (AFR)

• The federal Treasury department will consider the startup industry’s late submission over controversial proposed changes to sophisticated investor thresholds. (Capital Brief)

• Amazon has axed its planned US$1.45b iRobot takeover due to EU competition roadblocks. (Financial Times)

• Malcolm Turnbull criticises Labor’s stage 3 tax cut overhaul. (Capital Brief)

• Cathie Wood’s ARK Investment Management has spent US$141m buying the dip on Tesla stock during January. (Bloomberg)

• Bayer shares slump after court orders US$2.25b damages payout in Roundup weedkiller case. (Wall Steet Journal)

• Chinese augmented reality glasses maker, Xreal, has raised US$60m at a valuation of US$1b, as it aims to compete with devices being launched by Apple, Meta and Google. (Bloomberg)

• A string of childcare M&A deals that have been hanging in the balance are now back in focus, following the ACCC’s review into competition and profitability in the sector. (Capital Brief)

Trading floor

M&A

• Novomatic eyes acquisition of Ainsworth Game Technology. (The Australian)

• GPG Australia sellers eye $4b payout, Morgan Stanley send teasers to bidders. (AFR)

• Macquarie Capital to exit Next Payments amid cash decline. (AFR)

• Investors expect Woodside's buyout offer for Santos by next month amid price concerns. (The Australian)

• Bain Capital and Madigan Capital are in talks for a $500m debt refinancing for Public Hospitality Group. (AFR)

• Klark Quinn and his partner Brooke have pulled Sara Lee's Aus-NZ business out of administration. (SMH)

• City Chic's falling share price attracts offshore interest. (AFR)

• Private equity sizes up Bapcor as a potential target. (AFR)

• Intermediate Capital Group secures Cura Group acquisition at $600m. (The Australian)

• Jeromy Wells, outgoing CEO of ASX-listed software firm Whispir, expresses disappointment as he relinquishes control of the company to Soprano and Potentia. (AFR)

Capital Markets

• Galan Lithium begins a $15m placement at 46¢ per share. (AFR)

• Woolworths has raised flags on significant challenges in its New Zealand operations and disclosed two substantial writedowns against its first-half earnings. (Capital Brief)

VC

• VAPAR secured $5m in a Series A round to expand its presence in the US market. (Startup Daily)

• Food waste startup Yume raises $2m in round led by Investible. (Capital Brief)

• ProcurePro secures $6.15m for growth in UK and market leadership. (Startup Daily | BNA)

People moves

• None

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At Wilsons Advisory, our purpose is to protect, manage and grow the wealth of our private clients, including HNWs, super funds, family offices and not-for-profits with over 125 years of distinguished history in financial services.

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