That Was The Week That Was … In Australia
Dec 1, 2014
By Our Man in Oz
Minews. Good morning Australia, gold seems to have been the brightest spot on your market for the third week in a row.
Oz. Gold was the sector which saw its index add a few percentage points, but the flat performance of the broader minerals and metals index, and the all ordinaries index, was more a case of one bad session on Friday wiping out the good work of earlier in the week.
The gold recovery is becoming quite interesting and while most of the 3.7 per cent rise in the index was caused by a single stock, Newcrest (NCM), the latest rise means the index has risen over the past three weeks by around 13.5 per cent.
Minews. Is that a case of reviving interest, or just a recovery from being over-sold.
Oz. A bit of both really, but whatever the explanation three-weeks of steadily rising prices can’t be a bad thing.
Minews. Let’s move along quickly now because you’re on your way to London for next week’s Mines and Money conference.
Oz. An event which could either be the final word in the downturn we’re enduring, or the first word in a recovery which must eventually start after what’s been a pretty horrid year.
Before going through a quick call of the overall market card let’s stick to the structure of the past few weeks by looking at any eye-catching moves, starting with Duketon Mining (DKM) which reported what seems to be a significant nickel and copper hit from drilling at its Nariz prospect in Western Australia.
No assays were released but the company appears to have encountered thick and rich mineralisation which excited investors who pushed Duketon up by A29 cents (207 per cent) to A43 cents.
Cassini, another base metals explorer best known for its nickel search efforts, also reported encouraging drilling results with the stock rising by A2.5 cents (18.5 per cent) to A16 cents.
Newcrest was the pick of the gold companies, adding A69 cents (13 per cent) to A$10.34 cents, and Fortescue (FMG) was the surprise performer among the iron ore stocks, adding A25 cents to A$2.94 in a week when a big fall might reasonably have been expected because of a further fall in the iron ore price.
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