Syrah halts Mozambique operations, Santos to sell 5% PNG LNG stake and Core Lithium targets first spodumene shipments by year-end

Syrah Resources (ASX: SYR) has halted operations at its Balama graphite mine in Mozambique over ‘illegal industrial action’ taking place at the site involving workers and contractors.

The company exited a trading halt on Monday after confirming the news that “a small contingent of local employees and contractors” had raised safety concerns at Balama.

Syrah ceased work and removed its personnel from the site last Tuesday as a result of the situation.

The company is working with numerous parties to resolve the situation, including security, with the site’s internal union committee, and even Mozambique government representatives.

Syrah is concurrently coordinating the return of employees and contractors to have its operations in the region restored “as soon as possible”.

In the quarter to-date at Balama, Syrah has produced 38,000 tonnes of graphite, with sales also reaching 54,000t.

Santos

Oil and gas giant Santos (ASX: STO) has received a US$1.4 billion (A$2.1 billion) offer from Papua New Guinea’s state-owned Kumul Petroleum for a 5% stake in the PNG liquefied natural gas project (PNG LNG).

To lock-in the purchase, Kumul has paid US$55 million to Santos as a deposit.

After the acquisition, Kumul will own 22.8% of the project, while Santos will remain the biggest holder despite its share dropping to 37.5%.

Many believe, including Kumul’s managing director Wapu Sonk, the deal “brings huge economic and social benefits to the nation”.

Santos confirmed back in August it planned to receive the proceeds from the sale of its 5% stake in PNG LNG “in line with market consensus valuation”, which was estimated to be around $1.5 billion.

Santos managing director and chief executive officer Kevin Gallagher said selling the share in the project would offer greater opportunities for the future.

“PNG LNG is a low-cost and low emissions intensity asset that contributes strong cash flows to the project participants and economic and social benefits to the nation,” he said.

“Santos has been a committed partner in PNG for over 40 years, involved in more than 30 different licences and has significant community partnerships and projects across the nation.”

Costa Group

Leading Australian fruit and vegetable grower Costa Group’s (ASX: CGC) chief executive officer Sean Hallahan has stepped down from the role, just 18 months after taking on the position and leading the company through a “challenging” period of pandemic disruptions and “extreme” weather conditions.

Former chief executive officer and Harry Debney will take over the position in an interim role, as the company begins its search for the new chief.

Costa chairperson Neil Chatfield said Mr Hallahan played a significant role in the company’s growth over his time in charge.

“We understand that the last two years, particularly in Victoria, have taken a large toll on the business and personal lives of individuals,” he said.

“Under Sean’s leadership Costa has performed extremely well during a challenging period with global COVID disruptions and extreme weather conditions being successfully navigated and is in a strong financial position.”

Given Mr Debney’s previous reign as chief executive officer of the company for 11 years, and most recently serving as a non executive director, Mr Chatfield believed said was the right person to help with the leadership transition.

“Harry has an intimate knowledge of the company and is regarded as one of Australia’s leaders in horticulture,” he said.

Ramsay Healthcare

Ramsay Healthcare’s (ASX: RHC) share price has plunged again on the back of news this week that takeover talks with a consortium of financial investors led by KKR have been officially terminated.

Earlier this month, in response to Ramsay’s FY2022 results, KKR remained adamant it was not able to improve the terms of its “alternative proposal”.

Ramsay had announced the alternative offer was not appropriate – labelling it “materially inferior”.

Talks have since been terminated as no middle ground could be reached.

In its statement on Monday, Ramsay said the door remains ajar to further takeover proposals if appropriate value for shareholders is recognised and can be completed in a reasonable timeframe, but admits it is “unlikely” in the near future.

Ramsay’s share price has shed more than 18% of its value in the past month – dropping 8.61% this week alone.

Core Lithium

In a business update, Core Lithium (ASX: CXO) announced preparations were underway for the first shipment of Direct Ship Ore (DSO) spodumene from Finniss before the end of 2022.

The first spodumene was mined from the Grants Pit within the project, with the crushing and screening plant on track for commissioning ahead of DSO sales.

Due to the demand for Finniss ore, the DSO shipment would be sold through a tender process using a digital exchange platform, similar to that of Pilbara Minerals (ASX: PLS).

Also in the statement, Core revealed “high grade spodumene bearing pegmatite” had been intersected in multiple holes at the BP33 target, with mineralisation extending up to 830m below surface.

Core chief executive officer Gareth Manderson said Finniss is coming online at a time of high lithium demand.

“Core continues to demonstrate progress towards building a great lithium business through the delivery of the Finniss project to production and the ongoing work to prove up our resources to support future operations,” he said.