Briefcase: Business Snippets from around South Australia
In this week’s Briefcase, Babcock secures a new contract and Magnetite Mines has a major win for its Razorback magnetite project. Plus the latest business events.
- SATC appoints Gravity Media for Tour Down Under coverage
- Strata buyers turn to self-managed super
- Varda Spacecraft set to land at Koonibba Test Range
- Babcock secures lift and hoist contract for Hunter Class Frigates
- Centrex looks to raise $10m
- Magnetite Mines secures $7 million in funds
- South Australia breaks new vehicle sales record
- Direct shipping link to key North Asian markets opens
SATC appoints Gravity Media for Tour Down Under coverage
EMG/Gravity Media will deliver the Australian and international television production of the 2025 Santos Tour Down Under.
The partnership will see EMG/Gravity Media use outside broadcast trucks and satellite units, more than 25 cameras, “chase” motorcycles, helicopters, drones and a crew of 120 to cover the event.
“Bolstered by a strong commentary line up, a fantastic team in EMG/Gravity Media and broadcast partner in the Seven Network, we are excited to attract more fans to our great race this summer through a high-quality broadcast that will showcase the best that South Australia has to offer,” TDU event director Hitaf Rasheed said.
Strata buyers turn to self-managed super
Colliers South Australia director Jack Dascombe has highlighted a “major trend” in the strata market, with buyers using their self-managed superannuation funds (SMSF) to make purchases.
“Given the flexibility SMSF structures provide businesses regarding taxation and leaseback configurations for their place of business, it is becoming more common for this structure to be used in strata transactions,” Dascombe said.
It comes as Colliers research reported a robust performance across Adelaide’s active commercial strata market, with more than $46 million of property transacted throughout 2024.
The average price for strata assets in Adelaide is now $730,514, according to Colliers.
“Attributes of particular interest include opportunities for vacant possession as they appeal to both owner-occupiers and investors and customisable layouts, with lightweight partitions providing a greater number of options at a reduced refurbishment cost,” Colliers SA associate director Rhys Newman said.
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Varda Spacecraft set to land at Koonibba Test Range
Varda Space Industries has successfully launched its second orbital manufacturing spacecraft, W-2, aboard a SpaceX rocket from California. The W-2 capsule will orbit Earth for several weeks before re-entering the atmosphere and making a historic landing at the Koonibba Test Range north-west of Ceduna.
This will be the first commercial spacecraft re-entry in Australia, marking a significant milestone for both Varda and the Australian space industry. Southern Launch, responsible for securing all necessary approvals and managing the re-entry process, is coordinating the capsule’s retrieval from the South Australian desert.
“This successful launch of the W-2 capsule is only the beginning of this incredibly exciting mission. Our team is now focused on the safe return and recovery of the capsule to the Koonibba Test Range,” said Lloyd Damp, CEO of Southern Launch.
“By the end of this decade, it is predicted that we will all be using items that contain some element that is produced off Earth. We are incredibly proud to bring this industry to South Australia.”
The W-2 capsule carries payloads from various partners, including the Air Force Research Laboratory and NASA, and will conduct advanced pharmaceutical manufacturing experiments in space.
The Australian Government granted the necessary authorisation for the mission in October 2024, paving the way for future commercial spacecraft re-entries in Australia.
Babcock secures lift and hoist contract for Hunter Class Frigates
Babcock Australasia has won a $30 million contract to supply lift and hoist systems for the first three Hunter Class frigates. The contract will see Babcock procure, modify and install separate lift and hoist systems as part of its partnership with BAE Systems Maritime Australia.
The stores lift will streamline logistics by moving supplies between decks, while the food hoist will transport meals from the galley to dining areas. Both systems are based on designs used in the United Kingdom’s Type 26 frigates.
“The ability to effectively move stores around a ship is vital for maintaining readiness and effectiveness during missions,” said Babcock Australasia CEO Andrew Cridland.
“Our quality solutions will ensure that the crew can access the resources they need when they need them, enhancing both performance and safety.”
The contract will be managed from Babcock’s new facility in Woodville North, which opened in October to support the delivery of critical sovereign land and naval programs.
South Australian Grain Industry Awards, an inaugural gala dinner event hosted by Grain Producers SA to spotlight the grain sector, at Adelaide Oval on February 4.
International Women’s Day Breakfast, a Committee for Adelaide Event with Anna Meares, Grant Stevens, R M Williams COO Tara Moses, and Future Women founder Helen McCabe, at SkyCity on February 27.
_SOUTHSTART, the South Australian festival of start-ups, innovation and future thinking, held across multiple venues, will feature speakers such as Phil Morle, partner at Main Sequence Ventures, and Allys Todd, co-Founder and CEO at ValAi from 4-6 March.
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Centrex looks to raise $10m
Phosphate miner Centrex is undertaking a $10.4 million capital raise with funds to be used for plant upgrades and working capital.
The company said the launch of the entitlement offer follows the execution of strategic agreements with its logistics supplier, which has restructured its logistics trade debts.
Post-raise, the company said it would have about $9.8 million in cash, “providing confidence to management to continue the execution of its strategy and to invest in personal high growth initiatives”.
The offer will open on Friday 24 January and will close on 14 February.
The Magnetite Mines team at Razorback: Simon Smith CFO, Tim Dobson CEO, Gemma Brosnan GM External Affairs, Trevor Thomas Study Director. Photo: Supplied.
Magnetite Mines secures $7 million in funds
A $7 million capital raise will give emerging mining firm Magnetite Mines the capital required to lodge its Razorback mining lease proposal with the state government and for general working capital.
US-based fund manager C/M Capital Partners has provided an initial $2.5 million in funding, while a further $4.5 million will be in the form of unsecured convertible notes.
Magnetite Mines managing director Tim Dobson said the funds came during a “pivotal time in the development of our flagship Razorback Iron Ore project”.
“This facility allows us to submit our all-important Mining Lease Proposal to the South Australian Government as well as access to essential working capital,” Dobson said.
“The form of funding, being convertible notes, provides a level of flexibility as we continue to attract new partner interest for the development of Razorback.”
South Australia breaks new vehicle sales record
South Australia has had another record year for new vehicle sales, according to the Motor Trade Association.
Sales climbed 3.5 per cent to 78,709 vehicles in 2024, with fleet sales to government and business offsetting a slowdown in the private and rental markets.
The growth of electric vehicles (EVs) slowed to 17.4 per cent in 2024, down from 204 per cent in 2023. However, hybrids (up 74.6 per cent) and plug-in hybrids (up 77.4 per cent) hit new highs.
“2024 was without a doubt the year of the hybrid,” said Motor Trade Association CEO Darrell Jacobs, attributing the rise to “evolving consumer preferences for flexible and versatile mobility”.
Jacobs said the introduction of the Federal Government’s New Vehicle Efficiency Standard would bring more change to the local market in 2025. While consumer demand is slowing, Jacobs expects “even more zero and low emission vehicles available for purchase in 2025”.
Direct shipping link to key North Asian markets opens
A new weekly shipping service linking Adelaide, China and Indonesia is expected to significantly improve access to North Asian markets for South Australian exporters and importers, according to a press release by Flinders Port Holdings.
The new service, named the “Koala Service” by Mediterranean Shipping Company (MSC), will mean exports, including wine, grapes, citrus, almonds, hay and grain, will ship to some of the state’s largest trading partners more quickly and shipping arrivals will be more predictable.
“The commencement of the MSC Koala Service is a positive development for South Australia’s economy, which has the potential to enhance trade relations with North Asia and will boost the competitiveness of SA based importers and exporters,” said Flinders Port Holdings CEO Stewart Lammin.
