Star hit with NSW tax hike, BHP and OZ extend exclusivity period and Newcrest Mining CEO retires

Beleaguered The Star Entertainment Group’s (ASX: SGR) shares have continued their downward spiral – plummeting at the start of this week after the New South Wales Government announced plans to raise an extra $364 million in taxes from casino operators over the next three years.

The Star chief executive officer Robbie Cooke slammed the move, suggesting the casino operator was already paying its ‘fair share’.

It adds to the $100 million fine the casino operator owes following the Bell inquiry earlier this year that found the company unsuitable to hold a casino licence.

New South Wales treasurer Matt Kean confirmed the government will introduce a higher casino gaming taxes for The Star and Crown’s Barangaroo casino from 1 July 2023.

Matt Kean said it’s important that casinos “pay their fair share of tax”.

“These reformed tax rates will replace the existing regime under which casinos pay less tax on poker machines than hotels and clubs.”

The Star’s Mr Cooke blasted the NSW Government for failing to consult with the operators before announcing the planned tax hike.

“We are not sure how the government modelled its financials nor the basis for suggesting The Star does not pay its fair share of taxes,” he said.

“Specifically, in addition to state gaming taxes, The Star also pays millions in corporate taxes, with total taxes paid as a percentage of The Star’s profits being around 70%, and as high as 80% in the last five years when all the tax regimes are considered.”

APA Group

Leading energy infrastructure company APA Group (ASX: APA) has appointed Adam Watson as its new chief executive officer and managing director, ending a “comprehensive” global search process.

APA’s board said Mr Watson’s leadership skills and commercial experience in the growth and transformation of complex and diverse organisations meant he was the ideal fit to lead the giant’s next phase of growth.

Mr Watson first joined APA as chief financial officer in 2020, and has been the company’s acting chief executive officer since September.

Before joining APA Group, he held executive roles at Transurban (ASX: TCL), Melbourne Airport and BlueScope (ASX: BSL).

Incoming APA Group chief executive officer Adam Watson said it was a privilege to lead the company going forward.

“It is a great honour and privilege to be appointed as chief executive officer and managing director of APA, a leading Australian energy infrastructure business, at such an important time in the organisation’s evolution,” he said.

“In partnership with our customers, investors, government, communities and our people, we will continue to build on the underlying strength of the APA business as we pursue our agenda to create long-term value through both growth and operational efficiency across our unrivalled energy infrastructure portfolio.”

BHP Group

Mining giant BHP Group (ASX: BHP) has extended its exclusivity period for an additional week to finalise the terms of its $9.6 billion takeover of OZ Minerals (ASX: OZL), after the companies agreed to a deal back in November.

OZ Mineral’s board said the exclusivity period for negotiations on the takeover, which were set to expire this week, had been extended to 27 December after BHP confirmed it completed due diligence.

Australia’s largest miner BHP has been trying to snap up OZ Minerals as part of its accelerating efforts to boost its supplies of copper and nickel – two minerals deemed pivotal in electric cars and clean energy infrastructure.

BHP last month improved its bid to buy OZ Minerals from $25 a share to $28.25 a share, valuing the company at $9.6 billion.

OZ Minerals has two copper and gold mines in South Australia, Carrapateena and Prominent Hill, which are located either side of BHP’s vast Olympic Dam mining hub.

BHP aims to unlock significant potential cost savings by combining the assets.

Newcrest Mining

Newcrest Mining (ASX: NCM) has announced chief executive officer Sandeep Biswas is set to retire after eight years in the top job.

The company’s chief financial officer Sherry Duhe will assume the role of interim chief executive officer, as Newcrest launches a global internal and external search for a new chief executive officer.

Ms Duhe joined Newcrest earlier this year and has nearly three decades of experience across global energy and resource companies.

Newcrest chairman Peter Tomsett said Ms Duhe was the right choice to serve as interim chief executive officer given her “business acumen, strategic insights, track record of creating value, and her focus on ensuring Newcrest is a great place to work”.

Mr Tomsett also thanked Mr Biswas for his contributions and efforts towards the company since 2014.

“Our company has strong financial fundamentals, a relentless focus on safety and an unrivalled international portfolio of long-life, low-cost gold and copper assets, all of which have been transformed during Sandeep’s tenure,” he said.

“As we look towards the future, it is an opportune time for fresh leadership to accelerate the evolution of our company and ensure we are best placed to make the most of the opportunities in front of us.”

Northern Star Resources

Major gold miner Northern Star Resources (ASX: NST) has acquired a 10% holding in junior explorer PolarX (ASX: PXX).

Northern Star invested $1.48 million into the Perth-based company, which has now raised $3.63 million since the end of November to advance its Humboldt Range gold-silver project in Nevada and the Alaska Range copper asset in Alaska.

The $1.48 million investment includes a placement of 94.2 million fully paid ordinary shares at an issue price of $0.08, totalling $753,000, and $725,000 made up from a placement of 90 million shortfall offer shares at the same issue price.

Drilling is underway at the Star Canyon gold-silver prospect within Humboldt Range, where previous exploration hit 9.1m at 124.4 grams per tonne gold and 48.6g/t silver from 27.4m.