Australian Inflation at 2.9%, Troy Secured $100 M Investments

Marcus Jacob
23 Apr, 2014
New York City

Australian inflation in March increased from a year ago to 2.9% but trailed expectations. Market indexes closed higher 0.7% and a slight improvement in China

[R]5:00 PM Sydney – Australian inflation in March increased from a year ago to 2.9% but trailed expectations. Market indexes closed higher 0.7% and a slight improvement in China’s manufacturing also helped. Troy Resources secured $100 million to develop a project in Guyana.[/R]

Market indexes in Australia closed up after the latest read on inflation was below expectations and a private manufacturing industry survey in China showed a slight improvement.

The Australian Bureau of Statistics said inflation in the March quarter edged up to an annual inflation rate of 2.9% and the rate below expectations.

Australian dollar closed at 93.84 U.S. cents and stock market trading turnover increased to 585 million shares worth $4.25 billion.

The ASX 200 index increased 38.50 or 0.7% to 5,517.80 and the broader All Ordinaries gained 35.10 to 5,502.20.

Preliminary manufacturing industry survey in China conducted by HSBC indicated the index increased tom 48.3 in April. Any read below 50 means a contraction, however the latest data suggested manufacturing growth is still slowing but at a smaller rate than in the previous month.

Stocks in Review

Rio Tinto rose 5 cents to $62.79. BHP gained 19 cent to $38.20. Woodside Petroleum Limited jumped 0.8% to $41.20.

Westpac Banking Corp increased 33 cents to $35.62.

Newcrest Mining Limited gained 1% to $10.12 after the gold, copper and silver producer said gold production in the first-quarter ending in March was 551,590 ounces copper production was 21,012 tons with the all-in sustaining cost of sales of $988 per ounce.

Newcrest said gold production for the full-year is expected at the top end of guidance of 2.3 million ounces.

Lynas Corporation Limited climbed 5.7% to 18.5 cents after the Malaysian court has dismissed the appeal against rare earth minerals producer to obtain the operating licence.

Troy Resources Ltd soared 4.3% to 97.5 cents after the gold and silver producer secured funding of $100 million from Investec to develop its Karouni project in Guyana.

The company will access $70 million to develop the project and the balance $30 million will be available based on the progress in developing the project.