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West Australian
a minute ago
- West Australian
Aussies set to cop $75k income hit as mining gravy train ends and living standards plateau: Westpac
Mining delivered more than 50 per cent of the gains in Australian living standards over the two decades to 2020, according to Westpac, but the big four bank warns the gravy train is coming to an end. Analysis from Westpac senior economist Pat Bustamante has found weak net export growth and stalled mining investment is set to cost the average Australian $75,000 of income over the next decade. 'The mining industry accounts for less than 2 per cent of total employment or hours worked, and less than 15 percent of total output, across the Australian economy,' Mr Bustamante said. 'Yet, in the two decades to 2020, the mining industry delivered almost 55 per cent of the growth in our living standards.' Mr Bustamante said the contribution mining made to Australia's living standards was predominantly driven by higher export prices for key commodities, like iron ore, and an investment boom to bring massive projects online. 'Indeed, a large reason why the Federal government and the mining states have been able to provide cost of living support, and increase the scope of public services, without becoming heavily indebted is because of the windfalls provided by the mining industry,' he said. But the Westpac economist said mining investment has 'stalled' post the Global Financial Crisis of 2008 and strong commodity price growth was unlikely to continue. 'The economic landscape going forward will be very different. The dividend from higher commodity prices is likely to be a thing of the past as key commodity export prices ease,' Mr Bustamante. 'We have iron ore falling from around US$103 per tonne today to US$84/t over the March quarter 2027, for example.' Australia derives the bulk of its mineral wealth from iron ore, with more than $100 billion of export income produced each year. Local and international banks have been bearish about the long-term outlook of iron ore as China's steel demand peaks and new supply sources begin to emerge in Africa. Mr Bustamante said Australian living standards are projected to move sideways between 2022 and 2030, which would be 'the longest period (of no growth) on record'. 'Compared to the scenario where per capita living standards grows at the 40-year average rate of around 2.0 per a year, income will be around $75,000 lower per capita over the next decade in today's dollars compared to the status quo — that's around $300,000 for a household of four,' he said. 'The good news is that it does not have to be this way. Faster productivity growth can be an offset. Opportunities are emerging and we need to be well equipped to exploit these.' Mr Bustamante pointed to artificial intelligence as a potential opportunity, but implied more would need to be done to bridge the gap. 'The International Monetary Fund recently estimated that in nations that are well positioned to benefit from AI, its widespread adoption could boost productivity growth by 0.9 to 1.5 percentage points a year.' The Westpac research comes as Federal Treasurer Jim Chalmers prepares to host a three-day policy summit next month centred around productivity. The Business of Council of Australia is leading a cohort of 28 businesses and industry groups at the economic roundtable.
News.com.au
24 minutes ago
- News.com.au
Health Check: Aussie biotechs are navigating a US regulatory minefield
Telix faces unwanted US regulatory attention – but it's not alone Amplia raises $25 million, with another $2.5 million to go A home-grown uni biotech innovation shines again Telix Pharmaceuticals (ASX:TLX) shares this morning slumped up to 16% on news that the radiopharmacy play has attracted unwanted attention from the Securities and Exchange Commission (SEC). But the company is no Robinson Crusoe, in that US regulatory and legal glitches pose a regular minefield for ASX biotechs doing business there. The companies watchdog has subpoenaed 'various documents and information'. These mainly relate to the company's disclosures about its prostate cancer therapeutic program. 'The company is fully cooperating with the SEC and is in the process of responding to the information request,' Telix says. 'At this stage, this matter is a fact-finding request'. Telix adds the SEC's entreaty does not mean that Telix has violated US security laws 'or that the SEC has a negative opinion of any person, entity or security'. Barring more detail, the episode sounds like a case of 'probably nothing or very much something'. Overnight, Nasdaq investors were more chill about the affair, marking Telix shares only marginally lower. At the very least, the SEC's nosing around is likely to distract management from the company's busy agenda. 'In our experience of similar matters, these investigations tend to drag on for years without resolution,' broker Jefferies says. Trouble and strife Other ASX biotechs in the US have run into the odd bit of strife over patent disputes and regulatory interventions. ResMed (ASX:RMD) regularly parries with rivals Fisher & Paykel Healthcare (ASX:FPH) and Philips Respironics over sleep apnoea patents. In 2018 a jury ordered Cochlear (ASX:COH) to pay US$268 million in damages for a patent infringement. The charitable Alfred E. Mann Foundation lodged the action. In 2020 Cochlear lost an appeal. In 2013 CSL (ASX:CSL) paid US$64 million to settle an antitrust class action lodged by hospital groups. 'Business as usual' Telix says it will continue with the prostate cancer program. The SEC action also will not affect its nearer-stage imaging programs for kidney and brain cancers. Telix also reported June quarter revenue of US$204 million, 63% higher year on year, whilst maintaining calendar 2025 revenue guidance of US$770-800 million. This revenue derived mainly from Telix's prostate cancer imaging agent, Illucix. 'Dose volumes for Illuccix rose 7% quarter-on-quarter in the US, reinforcing the strength of our market position and continued customer demand,' Telix co-founder and CEO Dr Chris Behrenbruch says. He adds that 'despite emerging competitive pricing pressure', Telix has 'effective strategies' to maintain average selling prices. Next month, Telix lifts the kimono on June (first) half earnings. Jefferies expects a $50.6 million net profit, with a calendar 2025 tally of $88.3 million. Interestingly, this is a decline on the previous year's US$105.4 million, but the firm plugs in US$183 million for calendar 2026. Perhaps they lost our phone number? Speaking of US regulatory glitches, stroke drug developer Argenica Therapeutics (ASX:AGN) is yet to hear back from the US Food and Drug Administration (FDA) as to why the agency plonked a 'clinical hold' on its US trial plans. On June 10 Argenica said the FDA had deemed the company's supportive material as not being adequate to support its Investigational New Drug application. The trial was aimed at approval under the FDA's fast-track route. Argenica expected to hear back from the FDA within 30 days, but the agency's 'resourcing challenges' have blown out this timeline. In the meantime, Argenica is on track to report topline results from its local, proof-of-concept trial in the current quarter. The 92-patient phase II study tests Argenica's candidate ARG-007, in view of safety and preliminary efficacy in ischaemic (blockage) stroke patients. Courtesy of $4 million of government and private grants, Argenica is also investigating the 'potential utility' of ARG-0007 for other neurological conditions, including traumatic brain injury. Argenica disclosed June quarter cash burn of $2.36 million and a closing cash balance of $10.5 million. Nyrada advances heart protection trial In other trial news, Nyrada (ASX:NYR) is advancing its locally developed drug Xolatryp into phase IIa stage. Xolatryp targets the unmet need of protecting the heart following cardiac injury where patients are at high risk of tissue damage. Nyrada notes there's been no significant new cardiac drug developed for more than two decades. Xolatryp could become the first drug of its kind to protect the heart actively from ischemia-reperfusion injury. Nyrada anticipates a randomised, double-blind, placebo-controlled study, enrolling 150 subjects. These patients have acute myocardial infarction undergoing percutaneous coronary intervention (stenting). The company hopes to kick off the study in the March quarter of 2026. We now have Ample-ia funds, says cancer drug developer Prostate cancer drug hopeful Amplia (ASX:ATX) has raised $25 million in an institutional placement and is eyeing a further $2.5 million in a share purchase plan. The deed was done at 23 cents, a 19% discount to last Friday's 'frozen' price ahead of a trading halt. Amplia shares have been on a tear on the back of remarkable phase II results, covering patients with advanced metastatic forms of the deadly disease. Last month Amplia reported 17 partial responses, which meant the tumour size shrunk by at least 30%. Two of the 55 patients reported a complete response, which pretty much means a – can we say it? – cure. Amplia now plans a US trial combining Amplia's candidate AMP-945 with a different chemotherapy. The raising takes Amplia's cash to $42.7 million, including $8.2 million of expected R&D tax refunds. Don't forget who invented it Sanofi's $2.5 billion purchase of vaccine tech outfit Vicebio again highlights the role of Australian universities as a springboard for money-making life sciences ideas. The Paris-based Big Pharma is paying up to US$1.6 billion for the UK-based Vicebio and its so-called molecular clamp technology. The deal involves an upfront payment of US$1.15 billion, with regulatory milestones of US$450 million. Discovered at the University of Queensland (UQ), the clamp stabilises viral proteins enabling the immune system to respond to them more effectively. The upshot is the quicker development of fully liquid combination vaccines that can be stored at fridge temperatures. Vicebio was formed in 2018 to develop the clamp to make vaccines against life-threatening respiratory viral infections. During the pandemic, Vicebio had a stab at a Covid-19 vaccine. Courtesy of a US$100 million Series B financing last year, Vicebio's investors include Goldman Sachs Alternatives, Avoro Ventures and Venbio Partners. Uniquest, UQ's commercialisation arm has an unquantified direct investment and benefits from a licensing arrangement. Uniquest formed more than 130 start-ups, which went on to raise more than $1 billion and glean $86 million in product sales. This included licensing the UQ-invented cervical cancer vaccine Gardasil. The UQ bright sparks responsible for the molecular clamp are professors Paul Young, Daniel Watterson and Keith Chappell. UQ describes the deal as 'the largest involving a company that is commercialising intellectual property from an Australian university.'
Sky News AU
2 hours ago
- Sky News AU
About 17,000 jobs in jeopardy as Glencore warns it may have to shut down its operations at Townsville and Mount Isa
About 17,000 jobs could be in jeopardy as massive resources company Glencore reveals its considering halting operations. Two local operations in North Queensland at the Swiss metals Glencore are in strife despite a verbal offer of financial incentives from the Queensland government, including payroll tax deferral, to prevent collapse. An internal memo to staff from Glencore's interim chief operating officer revealed the company could soon place the two smelters into care and maintenance until conditions improved. 'To date Glencore has been absorbing losses hopeful that a viable solution could be found,' Mr Wilson wrote, per The Townsville Bulletin. 'However, we are fast reaching the point at which Glencore cannot continue to absorb these losses. 'We need to know in the coming weeks whether there is a viable solution on the table from governments. "Glencore is genuinely disappointed at the prospect of placing the smelter and refinery into care and maintenance if we do not receive adequate government support.' It comes as the company is expected to report a multi-billion-dollar loss over the next seven years from just two of its operations at Townsville and Mount Isa. Glencore directly employs about 550 workers, while lobby group Townsville Enterprise estimates that 17,000 jobs are connected to the nearby copper assets. Mr Wilson said offers from the state government were not enough and Glencore was now turning to Canberra for further support. 'Glencore is now urgently seeking details from the federal government on their proposed national smelting/refining strategy,' Mr Wilson said. Senior Glencore executive Suresh Vadnagra said shutting down was a last resort and that the company was open to the public taking a large stake in the beleaguered company. 'Time is running out," Mr Vadnagra said, according to The Australian. "We have been engaging with government for the past five months. "We need to know in the coming weeks whether there is a viable solution on the table from governments or whether we start to planning to transition the copper smelter and refinery into care and maintenance." The smelter's strife comes as Industry Minister Tim Ayres said Labor could provide taxpayer funds and long-term loans to assist ailing smelters crippled by energy costs and China-instigated trade distortions. 'The truth is, if these facilities didn't exist, governments would be trying to build them,' Mr Ayres told The Australian Financial Review. Many smelters and refineries are struggling to stay afloat in Australia. Rio Tinto-owned Tomago, which is Australia's largest aluminium producer, is seeking billions of dollars from the federal and NSW governments amid high power prices and as cost-effective and consistent renewables remain largely unavailable. Two Australian smelters owned by international minerals and metals producer Nyrstar are also under threat and the local CEO has begged various state and federal governments for a handout as losses mount to "tens of millions a month".
