Star Entertainment executive chair David Foster says the company is not currently in a fit state to hold a casino licence and may need further supervision by the regulator.
Mr Foster told the Bell inquiry II that despite improvements in its remediation efforts, Star would need further assistance to meet required regulatory standards.
“Obviously some safeguards may be needed for the NSW Independent Casino Commission (NICC) to make sure that we keep focused and don’t slip on delivering a plan,” Mr Foster told the inquiry, adding that could include an extension of the current manager Nicholas Weeks' term in office due to end September.
Earlier the inquiry was told of deteriorating relations between Star and the regulator, which was pushing for a greater pace of reform at the troubled casino group.
ASX 200 rises; Brambles falls; Ramsay Health gains; Star not fit for licence, chair says; Crown keeps Sydney licence
Chair says Star may need further supervision by regulator. Crown Sydney granted full gaming licence. Brambles falls amid ongoing inventory, price strain. Ramsay Health Care lifts on Wesfarmers 'interest'.
Welcome to the Trading Day blog for Tuesday, April 23. The ASX 200 index closed 0.5 per cent higher at 7683.50 points, boosted by tech, healthcare and bank gains. Wall Street closed higher.
The Aussie dollar is trading near US64.50c.
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Updates
Star not fit for casino licence: chair
ASX lifts again before CPI data
The ASX 200 rose for a second consecutive day, ahead of key inflation data set to influence the Reserve Bank of Australia's next move on interest rates.
Solid gains by heavyweight banks as well as tech and healthcare stocks boosted the bourse, which tracked a tech-led rebound on Wall Street.
CBA advanced 1.5 per cent, NAB rose 1.3 per cent, ANZ lifted 0.9 per cent and Macquarie rose 1.2 per cent. Westpac, which flagged a $164m hit to its first-half profit from notable items and scrapped the sale of its RAMS business, advanced 0.9 per cent.
Tech was the strongest sector with a 1.7 per cent rise, with WiseTech up 2.7 per cent.
The healthcare sector was boosted by biotech giant CSL's 1.3 per cent advance while Ramsay Health Care rose 2.9 per cent after The Australian's DataRoom reported that Wesfarmers has been weighing up buying the group.
The heavyweight materials sector fell slightly with the major miners mixed as BHP rose 0.2 per cent while Rio Tinto fell 0.2 per cent, Fortescue dropped 0.8 per cent and Mineral Resources lost 0.6 per cent.
Gold miners tracked a further 1.3 per cent fall in gold futures in the Asian session, adding to the precious metal's almost 3 per cent decline overnight after Middle East tensions eased over the weekend. Regis Resources and Newmont both fell 4.6 per cent and Evolution Mining dropped 1.5 per cent, while Northern Star lost 3.5 per cent with its March quarter impacted by weather challenges.
Pallets giant Brambles was the biggest drag on the bourse, declining 6.3 per cent after its trading update.
Select Harvests tanked by 9.5 per cent after a crop production downgrade, and developer Lifestyle Communities tumbled 13.5 per cent after a trading update.
The market's focus now shifts to the March quarter CPI data on Wednesday, with Bloomberg consensus estimates pointing to the annual inflation rate dropping to 3.5 per cent from 4.1 per cent in December quarter.
Westpac scraps RAMS sale
Westpac has scrapped the sale of its mortgage broker franchise business RAMS Home Loans after an unsuccessful Morgan Stanley-led attempt to sell it couldn’t secure an acceptable offer.
In a statement, a Westpac spokesman said the lender would consider the future of the franchise distribution business, which it bought for $140m in 2007 and once was a strong competitor in the low documentation mortgage lending industry.
“Westpac has concluded the sales process for its RAMS business without reaching a sales agreement,” the spokesman said.
“Westpac will continue to operate RAMS and support RAMS franchisees and customers while it considers further strategic options for the business.”
Star's 'false narrative' of a cleanout: inquiry
Counsel assisting the Bell II inquiry Caspar Conde says Star attempted to spin a false narrative of an executive "cleanout" after telling the NICC the board had terminated the employment of both chief executive Robbie Cooke and chief financial officer Christina Katsibouba in March.
Mr Conde said in fact both executives had initiated their own departures.
Star chair David Foster admitted he got the "terminology" wrong when describing the departures as terminations when both executives had submitted resignations.
"There were a lot of movements of people at the time," Mr Foster told the inquiry.
Mr Foster said the company' leadership team was not "dysfunctional" but he would not describe it as high performing.
Star CEO blamed regulator in exit email
Star chairman David Foster says the company's board did not want former chief executive Robbie Cooke to email an exit statement to staff that appeared to assign blame for his predicament to NICC chief commissioner Philip Crawford.
In the statement. Mr Cooke said Mr Crawford did not consider "I was moving with sufficient speed with the reforms and changes being implemented at The Star – a view with which I respectfully and fundamentally disagree".
Giving evidence at the Bell inquiry, Mr Foster said the board reviewed and gave feedback on the statement because "we were uncomfortable with it but we certainly didn't approve it".
Counsel assisting the inquiry Caspar Conde asked why Mr Cooke, who was still an employee, was instructed not to send the email. "Possibly (we could have)," Mr Foster replied.
CBA and others to buy 'green' Qantas fuel
Major banks, miners and consultancy firms are among the businesses paying a premium to reduce air travel emissions by contributing to the cost of sustainable aviation fuel (SAF) used by Qantas.
Accenture, Fortescue and McKinsey & Company have joined as partners with Qantas, contributing to address 1000 tonnes of carbon emissions. Commonwealth Bank, ING Australia, Deloitte, IMC and Raytheon Australia are members, which will see them contribute to the purchase of SAF to offset 400-600 tonnes of carbon emissions.
The addition of these members and partners means that the SAF Coalition program has doubled in its first year since launching in 2023 with five inaugural partners including Australia Post, BCG and Woodside.
Qantas has stepped up its green ambitions since the pandemic by signing deals to source sustainable aviation fuel from London and California in 2025. This is in addition to deals with Boeing and Airbus from 2028.
Shares in Qantas are up 1 per cent to $5.87 in afternoon trade.
Licence win recognises changes: Crown
Crown Sydney chief executive Mark McWhinnie says the regulator's decision to give the casino operator a full Sydney licence “recognises the genuine and sustainable changes we’ve made and our ongoing commitment to operating at the highest industry standards".
“Since opening the Crown Sydney casino in August 2022, we have worked tirelessly to implement wholesale reform across our business, delivering 432 remediation activities to the NICC across key areas, including harm minimisation, financial crime, compliance, risk, and culture,” McWhinnie says.
“Crown Sydney is the safest place to gamble in the state.”
The NSW Independent Casino Commission on Tuesday granted Crown Sydney permission to move to a full operating licence on Monday, finding it was suitable to hold its licence.
Star ex-CEO wanted NICC 'explosive'
Ousted Star chief executive Robbie Cooke hoped for something "explosive" about the NICC and chief commissioner Philip Crawford as relations between the casino operator and the regulator deteriorated, Bell inquiry II has heard.
The statement made in a text exchange between Mr Cooke and Star chairman David Foster in December came after the NICC said it had lost faith in Mr Cooke's ability to execute Star's remediation policy.
According to messages shown to the inquiry by counsel Caspar Conde, Mr Foster discussed the situation at Star with a family friend called John, who had knowledge of the casino sector, who told him he "thought Crawford was motivated to rewrite history."
When Mr Cooke was informed about the exchange, he said: "I was hoping for something explosive. Shame."
Gold Road rises after Canadian pullback
Shares in Gold Road are up 1 per cent to $1.63 at 1pm AEST, defying analyst concerns about the uncertainty around potential M&A after its decision to walk away from a potential $1bn deal to buy a Canadian gold project.
The miner also delivered a softer production report for the March quarter, but has so far bucked the trend in terms of the declines across other major gold producers that have been impacted by the precious metal's recent price fall.
Gold Road's attributable production of 32,300 ounces at an all-inclusive sustaining cost of $2194 per ounce came in lower than Moelis Australia equity analyst Paul Hissey's expectations of 38,700 ounces at an AISC of $2083 per ounce. Gold sales of 32,300 ounces at an average price of $3137/oz was also lower than Moelis' estimate of 38,600 oz at 3178/oz.
"Commentary (is) now pointing to "lower half" of FY24 production guidance and "upper half" of cost guidance (Dec-year end)," Mr Hissey's note states. "So while there are risks to FY24 production guidance, we see no reason to downgrade FY25 and beyond."
"Despite withdrawing from the Greenstone process, GOR retains the stake in DEG (De Grey Mining) and we think the uncertainty around potential M&A will persist – given management have now clearly shown their hand as to the potential scale and nature of potential targets".
Soft day for gold, iron ore miners
A sharp decline among gold producers – following the precious metal's overnight drop of more than 3 per cent – are weighing on the overall bourse.
The materials sector is off 0.3 per cent after falls across major gold producers Northern Star, Ramelium, Regis, Newmont and others and as iron ore producers flatline.
Northern Star's down nearly 5 per cent to $14.56 with its challenging March quarter update adding to the pressure on its share price on Tuesday.
The S&P/ASX gold index is down 4 per cent overall, including a 5 per cent slump in Genesis Minerals to $1.74 and Evolution Mining's 3 per cent drop to $3.88. Ramelius, which upgraded guidance following a record March quarter on Monday, is doen 4.6 per cent to $1.97. Regis Resources is worse off, down 6 per cent to $2.08. Newmont's 4 per cent fall to $57.04 is also weighing.
Among the iron ore heavyweights, BHP is flat near $45.49 and Rio near $129.94 with Fortescue in the red at $24.69.
Gold futures came off record highs to near $US2340.45 in US trading and are down further to $US2324 in Asian trade. Iron ore futures on the Singapore exchange are near $US110.84 per tonne.
ASX 200 hits new high; Platinum soars on Regal bid
New Hope's underlying earnings still solid on 'robust' coal price. Platinum urges no action amid Regal bid assessment. Casino operator Star agrees lender terms. Genesis back to claim control of dental group Pacific Smiles. Webjet demerger vote.
ASX closes at record high as US Fed rate cut nears
Alcoa rises on $US1.1bn cash-scrip Saudi stake sale. Austal soars on $670m US shipyard expansion contract. Fair Work Commission lands Virgin pilots deal. Police & Nurses Limited calls off merger with Beyond Bank.