Home' InDaily : February 26th 2010 Contents ADELAIDE BRIGHTON LIMITED (ABC)
Adelaide Brighton reported FY09 NPAT of $123 million,
2% above pcp and ahead of guidance. Revenue fell 3%
but higher margins kept the dip in reported EBIT to 2%.
The Company expects a "modest decline" in FY10 NPAT,
due to sliding cement demand, higher energy costs
and the higher $A reducing import parity prices and
constraining future price rises.
We believe Adelaide Brighton's long term strategies to
be sound due to increasing vertical integration, sensible
balancing of domestic clinker manufacturing with
overseas imports, and monopolistic lime assets serving
the WA alumina and gold sectors.
Whilst we are attracted to Adelaide Brighton's business
model, we do not believe the Company is a compelling
buy in the current environment, with its longer term
attractions to be overshadowed by a challenging FY10.
We rate the stock a Marketperform.
Sharebrokers and Investment Advisers
Telephone (08) 8217 3900
Warning (General advice only): Past performance is not a reliable
indicator of future performance. The recommendation in this
advertisement is made without reference to its appropriateness to
your investment objectives, financial situation and particular needs.
Before acting on this general advice, you should discuss with your
investment adviser the appropriateness of this recommendation to
your own specific circumstances.
February 26 - March 4, 2010
The Independent Weekly
Other states' grass
If Victoria is The Garden State,
as its car numberplate slogans
claim, then South Australia is no
Eden. We sit, more than a million
of us in Adelaide, on the edge of the
desert. We drink water which falls
half a continent away. To our east
and west is mallee, or what s left of
it.If any state should look after its
environment, it should be South
Three weeks ago, an umbrella
of environment groups launched
its wishlist for the 2010 election
campaign. Four key groups were
there, on Montefiore Hill: the
Conservation Council, Wilderness
Society, Australian Conservation
Foundation and the Nature
Even the Simpson Desert is not
forgotten. "We want to protect
the Simpson Desert under the
Wilderness Protection Act 1992
as a matter of urgency," says the
Wilderness Society s Peter Owen.
But it s not the desert which
blooms or looms large in the minds
of most South Australians. It s
the Mighty Murray, the blooms
of poisonous blue-green algae,
the death of the Coorong and the
decapitation of the Lower Lakes
cut off from the sea. Yesterday the
River, Lakes and Coorong Action
group staged a play on the steps
of Parliament House on North
Terrace. Environment Minister
Jay Weatherill told organisers he
had back-to-back meetings and
couldn t possibly attend, but Liberal
spokesperson for the Murray, Mitch
Williams, was there, and so was
Sandra Kanck from the Australian
Democrats, Tim Whetstone
and David Peake, Liberal and
Independent candidates respectively
from the Riverland seat of Chaffey,
Family First s Rob Brokenshire and
the United Party s Darian Hiles.
They re all up the Murray without
a paddle. Despite posturing from
both major parties, the only fix for
the Murray is a federal takeover, and
in the short-term the only solution
is a $400 million investment to buy
permanent water entitlements for
the Lower Murray.
South Australia also faces
challenges from dry-land salinity,
from degraded pasture lands,
feral animals and plants, from
monoculture and aquaculture.
Of all the minor parties, The
Greens possibly epitomise the
environment movement more than
any other. Lead Greens candidate
Tammy Jenkins is expected to
win an Upper House seat, to join
incumbent Mark Parnell. Greens
preferences will not just be
important in some Lower House
seats -- they could decide the
outcome in several.
Traditionally Labor has gathered
more environmental votes than the
Liberals, but Labor s record will this
time be under more scrutiny than
South Australia is no Eden,
although parts of it are paradise.
March 20 could help determine if
paradise is eternal.
has been a vote-
changer in state and
for two decades.
Hendrik Gout has
Olympic Dam will be the
world s biggest hole-in-the-
ground, the largest copper
and uranium quarry on the planet,
and the highest artificial mountain
range on Earth.
The environmental impact
is enormous. It will use more
electricity than it took to bring life
to Frankenstein s monster. The
mine may ultimately be more than
7km long, 5km wide and more than
Stacked up, the 44 billion
tonnes or so of overburden would
effectively create a new mountain
range. Depending on its shape,
it might be 20km wide in each
direction and almost as high as Mt
Lofty s 720m.
If so, the new artificial mountain
might create its own micro-climate.
The existing Olympic Dam mine,
a comparatively tiny underground
operation, already uses 35 million
litres of water a day. It drags this
from the Great Artesian Basin.
BHP Billiton is licensed to take up
to 42 million litres of water a day
from the basin, but even this will
not be enough.
The company therefore plans
to build a giant desalination plant
on the coast of the fragile Upper
"This is the worst possible
place to build an internationally-
sized desalination plant,"
said Australian Conservation
Foundation campaigner David
Noonan. "The Gulf is shallow, low-
flushing. It s the breeding ground
of the giant cuttlefish which is
extremely sensitive to changes in
salinity. The plant should be built
on the ocean, not the gulf."
At Olympic Dam itself, tailings
will have about 80 per cent of the
radioactivity of the original ore.
They contain radium and other
But South Australians will go to
the polls in three weeks without
knowing all the details of how
the government will manage the
biggest mining project this country
has ever seen.
impact on the
Despite fears of toxic air pol-
lution from recent factory
fires at Burton, Kilburn
and Blair Athol, the Environment
Protection Agency is planning to
shut down one of its air quality
The station at Kensington
Gardens is in the process of
being decommissioned. EPA
spokesperson Melinda Clarke told
The Independent Weekly it is not
returning worthwhile readings.
"The data which has been
collected from the site has, for
some time, been similar to that
being collected at Northfield and
it is not necessary to continue
monitoring both sites," Ms Clarke
But community groups say
this is an example of the Labor
Government putting public health
and safety last.
"The priority the Government
has for air quality is quite low
yet when we look at the medical
literature we see that in places
where there is no regard for air
quality people are getting very
sick," said People s Environment
Protection Agency chair Gary
Independent MLC David
Winderlich said there are
problems with monitoring and
not enough information available
to the public.
"The EPA has a hotline where
you can report pollution but no
service where you can get advice
on the health effects of pollution,"
Air quality monitoring has
been a contentious issue for years.
In 2007 the Rann Government
approved the expansion of the
Bradken Foundry at Kilburn,
which had long been a health
worry for residents living just
hundreds of metres from the
Mr Goland said nothing has
"In SA we don t collect any
evidence of what s happening in
our environment so we can t be
blamed for the problems," he said.
The EPA said it takes air
quality monitoring seriously and
several measures are in place to
protect the public.
"In addition to general air
quality monitoring in the
metropolitan area the EPA
conducts monitoring at specific
sites to monitor specific
currently this includes
monitoring of lead levels at
Port Pirie, dust in Whyalla and
Angaston and wood smoke in Mt
Gambier during winter," said the
The air we breathe
Ten-year-old Annabel O'Dea with a much older Murray Cod, a casualty of the Lake
Bonney fish kill.
Photo: Robyn O'Dea
This is the worst
possible place to build
-- Australian Conservation Foundation
campaigner David Noonan
The Bradken Foundry: the scene of an air quality war that was never won.
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