Renewed positivity in the US on Wednesday after the Federal Reserve left interest rates unchanged had a strong impact on the Australian market, perhaps giving local investors hope that the Reserve Bank will follow suit in its meeting next week.
Lower prices on the London Metal Exchange overnight were not enough to deter resource investors. Zinc was hit the hardest, falling 3.7% overnight to $US2211.5 per tonne, while lead fell 3.5% to $2099.25/t and copper declined 2% to $7206/t.
After leading the downturn yesterday, Rio Tinto was back on top of the market, gaining $A1.54 to close the day on $71.44.
Fellow mining giant BHP Billiton gained 40c to $40.70 after announcing plans to sell up to 25% of its Maruwai coal project on Borneo Island, Indonesia.
The company said last year it would not develop the project, but has now pledged to keep a majority stake and has said it is financially capable of developing Maruwai.
Iron ore major Fortescue Metals Group performed well, its share price rising 10c to close at $4.64.
CBH Resources also had a good day, increasing 0.5c to 15c on news it has received the necessary approvals to start operating its zinc-lead Rasp mine in New South Wales.
Production at the underground mine is expected to commence mid-2010 and is targeted at 6000 tonnes each of lead and zinc annually.
In percentage terms Latrobe Magnesium came out on top, gaining 40% or 0.4c to 1.4c.
At the other end of the scale, Bondi Mining lost 41.3%, or 6.2c, to close at 8.8c, after announcing less than positive results from phase 3 drilling at its Murphy project in the Northern Territory.
The reverse circulation drilling program intersected minor copper mineralisation as well as an altered mafic intrusion that was identified in a previous program.
In real terms, AngloGold Ashanti had the biggest drop of the day, falling 70c to $8.50 on no news.
Surprisingly, Beadell Resources fell 1.5c to 28c despite announcing the acquisition of Brazilian company Mineracao Pedra Branca do Ampari, which owns the multi-million ounce Amapari gold mine.
Beadell signed a sale and purchase agreement with Toronto’s New Gold Inc to acquire MPBA in a $US63 million deal.
Newcrest Mining also fell, dropping A17c to $32.13 in spite of announcing increased gold production and reduced costs in the December quarter.
