Australian Markets Steady, Rio Tinto Plans 15% Growth in Iron Ore Output

Marcus Jacob
15 Jan, 2013
New York City

Australian stocks turned lower after resource stocks and banks failed to hold on to the gains of the day. Rio Tinto plans to increase iron ore production by 15% in 2013 and said it is on track to commence production at its gold and copper mine in Mongolia.

[R]6:30 PM Sydney – Australian stocks turned lower after resource stocks and banks failed to hold on to the gains of the day. Rio Tinto plans to increase iron ore production by 15% in 2013 and said it is on track to commence production at its gold and copper mine in Mongolia.[/R]

Stocks in Sydney opened higher and held steady gains but market indexes drifted lower by late afternoon and closed down a fraction.

The ASX 200 index slid 3.20 to 4,716.55 and the broader All Ordinaries slipped 2.74 to 4,742.98.

The Australian dollar was slightly under the pressure after the release of new loan approval data but closed nearly unchanged at $1.0556.

Stock Movers

Miners were under pressure and investors overlooked the latest production outlook from Rio Tinto.

Rio estimated 2013 iron ore production to increase 15% and said 2012 production increased to 253 million tons.

Rio said it produced 66 million tons of iron ore in the final quarter to December that included its joint venture Hancock Prospecting’s production. Excluding the venture, the production increased to 199 million tons.

However, Rio missed its copper mining target and said its aluminum division production declined 10% from a year ago on labor dispute.

Rio said it is on target to commence commercial production at its copper and gold mine in Mongolia by June.

BHP Billiton Limited lowered 4 cents to $36.53 and Rio Tinto Limited slipped 9 to $65.90. Fortescue Metals decreased 9 cents $4.64.

Newcrest Mining climbed 45 cents to $22.38. Kingsgate jumped 13 cents to $4.87 and Whitehaven Coal slipped 6 cents to $3.37.

Transfield Services lowered 4 cents to $1.88 and engineering contractor WorleyParsons advanced 23 cents to $23.80. Monadelphous Group dropped 29 cents to $24.70 and Downer EDI up 1 cent to $4.09.

Lend Lease added 2 cents to $9.77.

Oil Search Limited fell 2 cents to $6.96 and Santos Limited increased 17 cents to $11.73.

Woodside Petroleum jumped 32 cents to $35.17 and Origin Energy Limited up 10 cent to $11.95.

Woolworths gained 4 cents to $30.27 and Kathmandu advanced 5 cents to $1.73.

David Jones Limited up 1 cent to $2.30 and Wesfarmers added 3 cents to $37.63. Breville Group slipped 10 cents to $6.35.

Billabong soared 16% to 98 cents after the struggling surfwear retailer received second takeover proposal from that matched the offer from its U.S. based chain executive Paul Naude and New York based leveraged buyout company Sycamore Partners.

VF Corp and Altamont Capital Partners offered $1.10 a share or $556 million in cash for the retailer.

Commonwealth Bank of Australia increased 12 cents to $61.75 and Bank of Queensland up 2 cents to $7.77 and ANZ added 6 cents to $25.27. National Australia Bank slid 3 cents to $25.71. Westpac dropped 14 cents to $26.36.

Toll Holdings added 2 cents to $4.94, Leighton gained 2 cents to $18.85 and property developer Mirvac Group lowered 2 cents to $1.56.

Westfield Group rose 5 cents to $10.90.