Indaba Mining conference in South Africa has had a positive effect on ASX. It would be nice to believe, but the real reason for last week aos recovery has been an upward revision marked price forecasts for iron ore. Rather than talking to a discussion of 30 or 40 percent, it is now open around a 90 per cent increase. What, aos driving speculation that almost doubles the price is demand in the spot market, where prices currently sit at around U.S. $ 125 per tonne. And that compares very favorably indeed with the benchmark (long term) price of about $ 60 U.S. per tonne.
And the miners probably argue that all sales must be at the spot price?
Oz. She aos a little more subtle than that, but it seems that steel mills in China may have last year kick in the world, aos most expensive goal against his side when they refused to sign a new agreement reference price. This decision has forced more iron ore on the spot market and triggered a series of events that appears to have destroyed a charging system of the Japanese invented in the 1960s to ensure the stability of annual awards.
This means that your contract was completed last week by the stocks of iron ore?
Oz. Yes, with gold miners also makes a solid contribution. The overall effect of iron ore and gold could be seen in the indices. The all ordinaries, held by the concerns of European sovereign debt and traffic on the effect on borrowing costs for banks worldwide, managed a modest increase of 1.2 percent last week, whereas ‘Index of Metals and Mining added 4.4 per cent For future gold index was up 5.6 percent.
Deadlines for awards, then. Either aos start with iron ore as seems to be the news outlet.
Oz. It was, but before drilling into the details a little heads-up warning to investors. The promise of rising prices has put the Government on full alert, especially as the world trade is dominated by three big boys of Mining, BHP Billiton, Rio Tinto and Vale. They have AORE leading the campaign for the spot price to become the standard market price, while at the same time, BHP and Rio are also trying to get approval from the European Union on the merger of their Australian mining. To add to this heady mix, the state government of Western Australia also claims a higher royalty payments. This means that the biggest profits can be expected from current market conditions may actually be trimmed, while at the same time, it could also create an opening for smaller children to climb in business.
An interesting topic, but let, aos stick at prices yet.
Oz. One of the best moves on the rise among stocks of iron ore had Giralia (GIR), which has a series of projects for iron ore under investigation. The last to attract interest is the property of magnetite Yerecoin, located in the Wheatbelt of southwestern Western Australia. Like some other explorers, Giralia acknowledged that iron ore is on the rail and port access, which is precisely what Yerecoin. In the market, Giralia up A18 cents last week to A $ 1.70. Also moving, Mt Gibson (MGX), Rose A26 cents to $ 1.60, after filing a strong first half earnings results, and iron ore Holdings (IOH) was up A27 cents to A 2 , $ 40 after reporting an increase in its resource base. Other solid performers, which included Atlas (AGO), up A24 cents to A $ 2.09, Fortescue (FMG) to A42 cents to A $ 4.93, Brockman (BRM) to A25 cents to A $ 2.96 and Gindalbie (GBG) to A6 to A96.5 cents cents. Territory (ATS) has also been better off, continues its slow but steady recovery with a half-cent increase to A15.5 cents.
Gold next, please.
Stronger in all areas, and with a stand at some movers. Barra (BAR) was the star, after reporting hits Bonanza drilling at its Phillips Find project near Coolgardie. Best assays included three meters at 70.78 grams per tonne (or more than two ounces per tonne) and a meager 0.7 meter intersection grading 299 grams per tonne, which probably means the drill bit reached a nugget . In the market, Barra, aos share price has risen from A7.6 cents to close this week Cents A9.1. At one point Friday it was trading higher than A10.5 cents. Meanwhile, CGA Mining (CGX) has completed a major capital increase for its gold projects, and delivered up share price of A28 cents to A $ 2.28. Chalice (CHN) regained lost ground with an attractive gain A9.5 cents to A43 cents. Kingsgate (KCN) added A48 cents to A $ 8.99. Andean (AND) continued to consolidate its reputation as a specialist in South American gold rising and setting in place of A27 cents to A $ 2.55. Catalpa (CAH) has increased from A15 cents to A $ 1.40, and Troy (TRY) ended the week at $ 2.28, up A18 cents.
Base metals, which would have done well with copper prices rising sharply towards the end of the week.
There was a long awaited return of interest in copper and nickel industries, but a lower yield in stocks of zinc. Copper led the way as prices firmed above $ 3.00 U.S. a pound level. The best of Australian copper stocks was Sandfire (SFR), which charged back after a post-sell-off Christmas by adding a very sharp A98 cents to A $ 4.20, helped by the release of drilling results Fresh from his project Doolgunna. Talisman (TLM), which was adjacent buildings, increased sympathetic A15 cents to A $ 1.02, but not yet reported drilling results. Other movements copper Equinox (EQN), up A22 cents to A $ 3.81, Citadel (CGG), up A1.5 cents to A35 cents, and OZ Minerals (OZL), up A5 cents to A 1 , $ 02. Jabiru (JML) increased A4 cents A40 cents after the acquisition of mining finance house, MetalsX as a major shareholder, while Hillgrove (HGO) has also been better off, up A4.5 cents cents A39.5, although this was mainly to thank you good news of its gold exploration program in Indonesia.
We could look more closely at the work Hillgrove. Meanwhile leave, aos finish metal base and appeals to move along the uranium, coal and any specials, please.
Nickel stocks were stronger, but not to the same extent as copper. Mincore (MCR) was added A5 cents to A $ 1.47. Minara slipped by A1 hundred A63.5 cents. Western Areas (WSA) has increased from A22 cents to A $ 4.28. Independence (IGO) won A26 cents to A $ 4.01, although this increase may be more to do with its gold projects than its nickel.
Perilya (PEM) was the best of a dull zinc sector by setting up A4 cents A58.5 cents. CBH (CBH) has added A1 hundred A13.5 cents. Terramin (TZN) set A3 cents A73 cents, and Mount Burgess (ATV) has slipped a hundred A1.1, down one cent A0.3.
Uranium stocks were mixed, with a stand-out winner in Manhattan Corporation (MHC), which added A29 cents to A $ 1.66. Paladin (PDN) slipped from A2 cents to A $ 3.54 after a lackluster earnings report. After that, it was generally weaker. Extract (EXT) has slipped backwards A15 cents to A $ 7.15, and Bannerman (MNB) has lost A2.5 cents to A59.5 cents.
The coal industry produced more winners, including an excellent debut by a new float. Hunnu coal (HUN), who studied in Mongolia and planning to cash in on the demand for electricity in China. Hunnu, aos Parts Center A20 started trading on Friday, a few hundred A36.5 strong, before slowing slightly to end a day at A33.5 cents. What made the deer very happy. The best coal stocks was created MacArthur (MCC), which gained a $ 1.32 to A $ 10.85. Riversdale (RIV) added $ 1.04 to A $ 8, and Coal of Africa (CZA) slipped A1 cent higher at A $ 2.34.
Lithium stocks continued to draw speculators, such as Galaxy (GXY) added A17 cents to A $ 1.23, while a new player in the game, Black Fire Minerals (BFE), published by encouraging rock samples smart its draft Karibib in Namibia, the news helped lift the stock by A4.5 cents to A15.5 cents.
source: minesite
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