BHP Production Surges, Australian Annual Inflation at 2.7%

Marcus Jacob
22 Jan, 2014
New York City

Australian inflation in the December quarter was ahead of expectations and rose 2.7% annual rate. BHP Billiton said iron ore production increased 16% in the last quarter, copper production rose 6% and petroleum production declined 4%. Mount Gibson reported record first-half iron ore sales.

[R]4:30 PM Sydney – Australian inflation in the December quarter was ahead of expectations and rose 2.7% annual rate. BHP Billiton said iron ore production increased 16% in the last quarter, copper production rose 6% and petroleum production declined 4%. Mount Gibson reported record first-half iron ore sales.[/R]

Stocks in Sydney trading opened sharply lower after the latest inflation report was ahead of expectations but market indexes trimmed losses in the afternoon trading.

The Australian Bureau of Statistics reported consumer price index in the December quarter jumped 0.8% and for an annual rate climbed 2.7%.

A separate survey from Melbourne Institute and Westpac showed its consumer sentiment index in January dropped 1.7% to 103.3.

Australian dollar eased to 88.64 U.S. cents after the release of inflation data and in stock trading turnover rose to 604 million shares worth $3.6 billion.

The ASX 200 index fell 11.70 to close at 5,319.80 and the broader All Ordinaries slid 10.70 to 5,331.30.

Stocks in Review

Rio Tinto dropped 51 to $65.29.

BHP slumped 32 cents to $37.63 after the diversified natural resources company production of iron ore in the quarter ending in December soared 16% to 48.9 million tons from a year ago and first-half production climbed 19% to 97.8 million tons from a year earlier.

The company also said quarterly production of copper jumped 6% to 439,900 tons and metallurgical coal production surged 30% to 11.5 million tons.

Petroleum output in the quarter dropped 4% to 57.7 million barrels of oil equivalent on the decline in natural gas production.

BHP raised its forecasts for annual iron-ore production in October, citing improvements in supply chain and Jimblebar mine production ahead of schedule.

Woodside Petroleum Limited fell 22 cents to $38.15.

Westpac increased 16 cents to $31.95.

Mount Gibson Iron Limited climbed 3.6% to $1.02 after the iron ore miner reported half-year sales ending in December record to a 2.5 million tons and reaffirmed its 2014 full-year guidance.

Cash reserves for the December quarter was at a record $484 million, an increase of $64 million.

Telecom Corp of New Zealand (Australia) rose 0.4% to $2.25 after the New Zealand focused telecommunication was the successful bidder and paid NZ$83 or $68 million to acquire additional spectrum for its fourth generation mobile network in New Zealand.

Warrnambool Cheese & Butter Factory Co gained 1.2% to $9.42 after Canadian dairy Saputo Inc claimed its $9.20 per share takeover offer and reached interest of more than 50% in the company.

Last week, Bega Cheese sold its 19% stake in Warrnambool to Saputo for $101 million.