BHP Sells Uranium Project to Cameco, Australian Stocks Flat

Marcus Jacob
27 Aug, 2012
New York City

Stocks in Sydney traded in a tight range and closed lower as investors focused on international events. Spot gold price increased to a 4-month high. BHP agreed to sell the largest undeveloped uranium mine in Western Australia to Cameco for $430 million.

[R]7:30 PM Sydney – Stocks in Sydney traded in a tight range and closed lower as investors focused on international events. Spot gold price increased to a 4-month high. BHP agreed to sell the largest undeveloped uranium mine in Western Australia to Cameco for $430 million.[/R]

Stocks in Sydney inched lower in a tight trading range as investors focused on the international events.

The index measuring Chinese company profits showed a decline of 5.4% in July from a year ago. The latest monthly profit decline was the fourth in a row.

The latest data only added to the worries that the demand for minerals and materials will remain depressed and add more pressure to iron ore prices which are hovering at a low last seen in 2009.

The ASX 200 index slid 5.30 to 4,343.70 and the broader All Ordinaries lowered 3.57 to 4,372.90. For the week, the ASX index decreased 0.2%.

The Australian dollar decreased to US$1.037 from US$1.04 after the latest data on Chinese companies profit in July.

In trading, stock turnover fell to 1.5 billion shares worth $3.34 billion exchanged hands. Of the shares traded, 448 increased, 449 declined and 365 were unchanged.

Stock Movers

BHP agreed to sell the largest undeveloped uranium mine in Western Australia, Yeelirrie Project, to Cameco Corporation for US$430 million. The Yeelirrie project is 750 kilometers south of the Cameco-controlled Kintyre uranium project.

BHP Billiton Limited slipped 7 cents to $33.02 and, Rio Tinto Limited advanced 31 cents to $52.11 and Fortescue Metals Group added 2 cents to $4.

Iluka Resources climbed 33 cents $9.93 and Lynas Corporation Limited closed unchanged at 66 cents.

Atlas Iron decreased 5 cents to $1.61 and the company guided higher iron ore prices in the next two months on the expectations of the improved demand from China.

Newcrest Mining up 2 cents to $27.22 and Kingsgate increased 13 cents to $5.20 and Whitehaven Coal soared 19 cents or 6.2% to $3.28.

The engineering contractor, Monadelphous Group added 3 cents to $22.01.

Oil Search Limited increased 8 cents to $7.41 and Santos Limited slumped 11 cents to $11.47 and Woodside Petroleum dropped 60 cents to $34.70. Sundance Energy slipped 3.5 cents to 73.5 cents.

Caltex Australia decreased 22 cents to $15.27 and the oil refiner said first-half profit increased on higher operating margins.

Seven West Media closed unchanged at $1.49 after net soared 97% to $229.1 million.

Ten Network closed unchanged at 41 cents and Fairfax Media slid 0.5 cent to 45 cents.

Consolidated Media Holdings added 1 cent to $3.46 after it reported 15.6% decline in net profit.

Metcash decreased 3 cents to $3.60, Harvey Norman Holdings up 1 cent at $2.12 and Woolworths declined 27 cents to $28.73. Kathmandu closed unchanged at $1.36.

Commonwealth Bank of Australia dropped 26 cents to $54.64 and Bank of Queensland slid 2 cents to $7.53. ANZ slipped 7 cents to $24.70. National Australia Bank dropped 14 cents at $25 and Westpac Banking Corporation gained 3 cents to $24.68.

Macquarie Group gained 14 cents to $26.27 and Perpetual Limited up 4 cents to $27.25.

David Jones Limited closed unchanged at $2.44 and Wesfarmers climbed 19 cents to $34.10.

Billabong International Limited added 1 cent to $1.36. Breville Group increased 10 cents to $5.49. Harvey Norman gained 1 cent to $2.12.

Billabong decreased after the troubled retailer said it plans to close store and retire product lines after the country narrows its focus and renews its commitment to return to profitability.

Toll Holdings slid 4 cents to $4.51 and the logistics company said it plans to resolve its operating problems in Japan and its marine operations in Asia.

Leighton increased 7 cents to $17.03 and property developer Mirvac Group down 3 cents to $1.33.

Qantas up 2 cents to $1.18 and Flight Centre climbed 11 cents to $23.60 and Virgin Australia added 1 cent to 48 cents.

QR National closed unchanged at $3.53 and Telstra closed unchanged at $3.73.