CAPITAL MARKETS

Miners sluggish

MINERS gained little traction today as the wider market closed higher after a second consecutive ...

Justin Niessner

While analysts have linked a weaker US dollar to continued buoyancy in the price of gold, it was not enough to piggyback resource companies on the larger market momentum.

The Australian dollar was last trading at US92.66c and spot gold was holding near $1335 per ounce.

The S&P/ASX 200 peaked at 5062 before closing 0.1% up at 5042.

Basic materials, however, were among the poorer performing sectors, falling 0.5% on the day.

BHP Billiton was 0.5% lower at $A34.60 and Rio Tinto was 0.4% down at $57.24 after water supply problems prompted the majors to invest $US3 billion ($A3.2 billion) in a desalination facility for Chile’s enormous Escondida copper mine.

Gold companies were mixed as investors weighed a World Gold Council prediction that prices would continue to increase and a Bloomberg report that traders were the least bullish in four weeks.

Medusa Mining offered one of the few bright spots in today’s session with a 1.4% gain to $2.21 while AngloGold Ashanti fell off 6.8% to $3 and Kingsrose Mining lost 6.9% to 40c.

Gleneagle Gold was one of the biggest losers with a 50% drop to 0.1c followed by Enterprise Metals with a 20.9% decline to 8.3c.

Meanwhile, iron ore investors seemed rattled after Gina Rinehart reportedly turned down a $400 million loan from ANZ Bank to fund development of the massive Roy Hill iron ore project in Western Australia.

Centrex Metals was 8.3% in the black at 13c along with Cape Lambert Resources, up 6.2% to 17c and Sherwin Iron, up 3.5% to 8.8c.

Fortescue Metals Group, Atlas Iron, Mount Gibson Iron and BC Iron, however, each posted in negative territory.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.