Australian Stocks Rebound; Sims Metals, Newcrest in Focus

Marcus Jacob
13 Feb, 2015
New York City

Australian market indexes soared in active trading after commodities rebounded and domestic earnings supported market momentum. Newcrest Mining reported surging earnings on flat revenues and also said that the gold miner is open to selling its third largest mine. Sims Metals soared.

[R]5:30 PM Sydney – Australian market indexes soared in active trading after commodities rebounded and domestic earnings supported market momentum. Newcrest Mining reported surging earnings on flat revenues and also said that the gold miner is open to selling its third largest mine. Sims Metals soared better-than-expected results.[/R]

Stocks in Australia surged in active trading and resource stocks led the gainers after commodities prices rose and earnings supported the market momentum.

Australian dollar closed at 77.85 U.S. cents and in stock-trading turnover jumped to 962 million shares worth $6.8 billion.

ASX 200 Index climbed 133.90 or 2.3% to 5,877.50 and broader All Ordinaries Index jumped 127.80 or 2.2% to 5,835.50. For the week, ASX 200 increased 0.9%.

In commodities trading, gold gained US$7 to US$1,228 an ounce and light crude oil advanced $2.38 to US$52.16 a barrel.

Brent crude jumped US$2.39 to close at US$57.05 a barrel.

Australian Stock Movers

Automotive Group Holdings Ltd jumped 2.2% to $3.79 after the diversified automobile retailer said group revenues soared 10.6% to $2.57 billion from $2.32 billion a year ago period.

Net profit in the year climbed 17.2% to $46.08 million compared to $39.31 million and diluted earnings per share fell to 15.03 cents from 15.08 cents in the same period a year ago.

Newcrest Mining Limited slid 0.07% to $13.90 after the gold producer reported revenues in the year ending in December was flat at $2.01 billion from a year ago period.

Net profit in the year surged 295.4% to $207 million compared to $44 million and diluted earnings per share jumped to 26 cents from 5.2 cents in the same period a year ago.

The gold producers announced that the company is open to selling its third largest gold mine Telfer despite the production cost decrease of 21% to an average $867 per ounce.

The company lowered the cost of operation at the mine and set the target production between 510,000 and 560,000 ounces in fiscal 2015. However, the gold miner is open to selling the third-largest mine because it will substantial investment to open up additional lode for mining.

Chief executive officer Sandeep Biswas said “Telfer and Cadia were the main drivers behind the latest half-year profit.”

Tempo Australia Limited surged 123.1% to 0.06 cents after the mining and energy service provider secured contract worth $11 million from Rio Tinto at its Cape Lambert Port B Project in the Pilbara region of Western Australia.

Sims Metal Management Ltd surged 10.6% to $11.75 after the ferrous and non-ferrous recycler said revenues in the first-half ending in December declined 5.5% to $3.40 billion from $3.60 billion a year ago period.

Profit in the period climbed 701.1% to $74.5 million compared to $9.3 million and diluted earnings per share soared to 36.3 cents from 4.5 cents in the same period a year ago.

Warrnambool Cheese & Butter Factory gained 0.9% to $7.94 after the dairy product maker stated revenues in the year ending in December increased 5.4% to $304.51 million from $288.80 a year ago period.

Net profit in the year plunged 17.7% to $25.04 million compared to $30.42 million and diluted earnings per share dropped to 44.6 cents from 56.1 cents in the same period a year ago.