Sydney Gains; Macarthur Coal Sales Drop

Chandrasekhar Atreya
28 Jul, 2010
New York City

Stocks in Australia gained after consumer price index increased slower than expected. BlueScope Steel and Japan

[R]6:00 PM Sydney, Australia – Stocks in Australia gained after consumer price index increased slower than expected. BlueScope Steel and Japan’s Nippon Steel sign an agreement to develop coated steel products. Queensland appoints a commissioner to oversee the state’s gas market.[/R]

Australian stocks gained today after a report showed that headline consumer price index increased slower than expected. The index after briefly dropping in the mid-session gained later to close higher.

The ASX 200 Index gained 0.72% or 32.50 to close at 4,529.90 in Sydney today.

Consumer price index in the second quarter grew less-than-expected in Australia according to data provided by the Bureau of Statistics. The index grew at 0.6% from the first quarter, with prices gaining 3.1% from a year earlier. Recreation, food and communications costs fell, the data showed.

Macarthur Coal Ltd, the world’s largest producer of pulverized coal, said fourth quarter sales dropped 11% from a record a year ago. Sales for the quarter to June 30 totaled 1.32 million tons from the record 1.48 million tons a year ago said the company in a statement today.

Lihir Gold Ltd said second quarter output declined 17% after heavy rain affected production at its project in Africa. Output in the quarter to June 30 fell to 243,925 ounces compared to 294,024 ounces a year earlier, the company reported today.

BlueScope Steel Ltd and Japan’s Nippon Steel Corporation have inked a long-term joint technical collaboration agreement to develop next generation coated steel products.

Strzelecki Metals will offer one stock for each stock held at 1 cent to raise A$1.8 million for the potential acquisition of new mineral assets.

The Queensland government has appointed a commissioner to oversee the state’s gas market amid a liquefied natural gas boom. Kay Gardiner will become the state’s first gas commissioner. Kay currently works for the Queensland Water Commission as a senior bureaucrat.

New Standard Energy, formerly Hawk Resources Ltd, says calculations of its Heintschel gas condensate field in its Colorado County project revealed a significant potential for hydrocarbon resource higher than first predicted.

AKG Energy calculated the contingent recoverable resources to range from 25.6 billion cubic feet of gas and 0.46 million barrels of condensate to 88 billion cubic feet of gas and 1.6 million barrels of condensate, with a mid estimate of 59 billion cubic feet of gas and 1.1 million barrels of condensate.

MetroCoal extends to September 30 the date by which all conditions precedent of the joint venture with China Coal Import & Export Co are to be satisfied.

Ceramic Fuel Cells Ltd said the Canberra Institute of Technology is to install a gas-to-electricity BlueGen power generating unit it had developed for sustainable energy. It said additional 30 units have been ordered by the Victoria’s Department of Housing.

BlueGen, which is the size of a dishwasher, uses solid oxide fuel cell technology to convert natural gas to electricity and heat.

Charter Hall launched the first of its much-awaited suite of unlisted trusts with a A$30 million closed-end industrial property fund that will offer investors a forecast initial yield of 8.7%. The new unlisted fund has a target of A$200 million worth of assets that it will buy itself.

Charter Hall recently expressed its desire to diversify and expand its listed entities, which include the retail and office trusts that were formed when the company took over the management of the former listed Macquarie Trusts earlier this year.

Resource News

Energia Minerals unveiled a maiden resource at its Nyang uranium project in Western Australia’s Carnarvon Basin.

Iron ore prices jumped by more than 5% on Monday but market remains wary that steelmakers could be forced to keep cutting production as margins remain under pressure.

North Queensland Metals says underground drilling results at its Pajingo joint venture with Heemskirk Consolidated Ltd reinforces its belief in the operation. The company said top intercepts from the Zed East and Zed West ore bodies at Pajingo, near Charters Towers in Queensland, included 27.4 grams per ton of gold.

Gainers & Losers

Kagara Ltd led the gainers in the ASX 200 with a gain of 9.68% to A$0.68 followed by Downer EDI Ltd 5.93% to A$4.82 and Graincorp Ltd 4.9% to A$5.99.

Perseus Mining Ltd led the decliners with a fall of 4.46% to A$2.14 followed by Lynas Corporation 4.43% to A$0.755 and Avoca Resources Ltd 4.36% to A$2.63.