AGL plans early closure of SA gas power station, ANZ exits Myanmar and Chalice reveals ‘outstanding’ drilling results at Julimar

AGL Energy (ASX: AGL) has announced plans to shut down its Torrens Island ‘B’ gas power station in South Australia on 30 June 2026, aiming to transform the site into a low-carbon industrial energy hub for the future.

The energy giant confirmed the closure of the station will take place nearly a decade earlier than expected, to coincide with the opening of a new interconnector between SA and New South Wales.

AGL’s 800-megawatt Torrens Island B power station has been providing power and grid ancillary services since 1976.

The company’s decision to bring forward the closure date was not swayed by the recent addition of four new board members proposed by activist shareholder Mike Cannon-Brookes; instead, discussions between AGL and the SA Government had been ongoing for some time.

AGL chief operating officer Markus Brokhof said the decision was tough, but the Torrens Island B station was costing the giant millions of dollars to operate.

“We are losing money with this power station here in the current environment and this will be just emphasised by the new built interconnector — which is currently under construction — EnergyConnect,” he said.

AGL said the announcement will have minimal impact on its books moving forward.

“Today’s announcement is not expected to have a material impact on underlying profit in FY23 or over the longer term due to the challenged economic viability of the power station,” the company stated.

“AGL is strongly committed to working with its people, in conjunction with unions and government, to help transition and further develop the skills and capabilities required for new and existing energy industries as Australia’s energy system transitions to a low-carbon future.”

In the future, AGL aims to explore the possibility of developing a green hydrogen facility at Torrens Island.

ANZ

Australia and New Zealand Banking Group (ASX: ANZ) has announced it is withdrawing its services in South East Asian country Myanmar by early 2023 over concerns relating to “increasing operational complexity”.

In a short statement on Tuesday, the major Australian bank confirmed the “operational complexity” concerns were brought to light over the course of several months and it was “working with its institutional customers to transition to alternative banking arrangements.”

ANZ international managing director Simon Ireland said the decision followed careful consideration.

“We thank the team for working tirelessly to support our customers during this time,” he said.

“Our international network and supporting the trade and capital flows of our customers around the region is a critical part of our strategy and will continue to be for the long term.”

Back in 2014, ANZ become one of the first international banks to receive a banking licence from the Central Bank of Myanmar.

ANZ’s decision to leave Myanmar means that by early next year, there will be no major Western banks operating within the nation.

Chalice Mining

Chalice Mining’s (ASX: CHN) share price has surged this week after announcing drilling at its Julimar project in Western Australia uncovered several “outstanding” new intersections, up to 650 metres beyond the existing resource area, highlighting the potential for material resource growth.

The miner has now extended drilling of the high-grade sulphide zones at the northern end of the Gonneville deposit.

New assay results included 157.5m at 1.7 grams per tonne palladium, platinum and gold (3E), 0.2% nickel, 0.1% copper and 0.02% cobalt.

Chalice said the latest results signalled “significant” near-term growth potential in the high-grade portion of the current resource area and a potential deepening of the resource pit shell at the northern end.

The company now plans to commence follow-up step-out drilling in the northern part of the Gonneville deposit, Hartog, in the coming weeks.

Whitehaven Coal

Whitehaven Coal (ASX: WHC) has announced its managing director and chief executive officer Paul Flynn has sold 900,000 of his shares in the company, citing personal reasons.

The company confirmed the sale was also to “satisfy personal tax obligations arising from the issue of shares under the company’s equity incentive plan”.

Investors were sent into shock in light of the news, as the coal miner lost around 7% of its value.

Despite that, Whitehaven’s share price is still up more than 220% year to date, and almost 1,000% over the past two years.

The company has reassured shareholders that the Whitehaven boss still holds a significant stake in the company.

“Following the sale, Paul Flynn retains a significant interest in the company and remains one of the company’s largest individual shareholders, with a holding of 1,070,451 shares, 449,884 vested performance rights and 2,534,161 performance rights which are subject to meeting vesting conditions,” it stated.

Qantas

Qantas (ASX: QAN) has upgraded its profit guidance for the first half of the 2023 financial year thanks to “continued strength” in travel demand since international borders reopened.

The nation’s largest domestic and international airline provider now expects an underlying profit before tax of between $1.35 and $1.45 billion for the first half of FY23.

Its new guidance trumps the $1.2 to $1.3 billion Qantas forecasted in early October when it first announced a return to profitability after two years of COVID-19 related losses.

Qantas said consumers were prioritising travel over other spending areas, as a result of such a long time not being able to.

The airline giant also said the $200 million investment made toward additional staff, continued recruitment and reserve aircraft has led to an enhancement of its overall operational performance.

Qantas hopes the investment and new initiatives will help guide the airline through a busy Christmas and New Year period dealing with COVID-19 related illness.