Australia Stocks Set for Record Led by Lihir
Gold has been extending its gains pretty well as a nice alternative investment as the U.S. dollar weakens, said
Albert Landman, who helps manage the equivalent of $71 million at Tricom Equities Ltd. in Melbourne. And takeover rumors do tend to get people excited.
Innamincka Petroleum Ltd. surged to a record after discovering what it described as one of the largest onshore oilfields in Australia. BHP Billiton Ltd. and Rio Tinto Group rose on speculation copper supplies may be interrupted by a strike, boosting the price of the metal.
The index advanced 29.10, or 0.4 percent, to 6,596.90 as of 1:35 p.m. in Melbourne. The measure jumped 5.1 percent in September. Today is a public holiday in the states of New South Wales, South Australia, Western Australia and the Australian Capital Territory. Three stocks gained for every two that fell.
Newcrest, Australia biggest gold producer, added A$1.01, or 3.6 percent, to A$29.02. Lihir, its second-largest, jumped 18 cents, or 4.6 percent, to A$4.12, a record.
Newmont Mining Corp., the worlds No. 2 gold producer, said during a presentation at the Denver Gold Forum Sept. 26 that both companies were attractive because of low production costs, according to a Sept. 28 Credit Suisse analysts note led by Michael Slifirski. Newmont may seek such producers as its own output of the metal becomes more expensive, the note said.
Gold Gains
Gold prices may also rise for a seventh straight week, extending their rally to the highest price since 1980, according to a Bloomberg survey of gold traders, investors and analysts.
Of the 24 surveyed, 17 advised buying gold, which rose 1.5 percent last week to $750 an ounce in New York.
Gold for December delivery strengthened 60 cents, or 0.1 percent to $750.60 an ounce in after-hours trading in New York as the U.S. dollar fell against nine of the 16 most-actively traded currencies tracked by Bloomberg.
Innamincka, a Brisbane-based oil and gas explorer, soared 81 cents, or 208 percent, to A$1.20, an all-time high.
The company said its Flax East 1 well was saturated with oil hydrocarbons and the development of a major new onshore oilfield is anticipated. Oil has been found in both the company Flax and Juniper oilfields, Innamincka said in a statement to the exchange.
BHP, the world largest mining company, added 44 cents, or 1 percent, to A$44.98, a record. Rio Tinto, the third- biggest, gained A$1.64, or 1.5 percent, to A$109.86.
Peru Strike
Copper rose in Asia on concern supplies may be disrupted by a strike at Peru Southern Copper Corp., the world fifth- largest producer of the metal. Copper for delivery in December added 0.3 percent on the London Metal Exchange. The workers are striking tomorrow for higher wages.
The following shares also gained or declined. Stock symbols are in brackets after the company names.
Arrow Energy NL (AOE AU), an Australian producer of natural gas from coal seams, gained 2 cents, or 0.8 percent, to A$2.52. The company signed venture agreements with Indonesia state oil company PT Pertamina to study coal seam methane deposits in South Kalimantan.
Goodman Fielder Ltd. (GFF AU), Australia largest baker, lost 6 cents, or 2.3 percent, to A$2.52. Credit Suisse AG analyst Larry Gandler cut the stock to underperform from neutral and set a 12-month price target of A$2.46 a share.
Gunns Ltd. (GNS AU), a timber processor and exporter, rose 4 cents, or 1.4 percent, to A$2.83. Australia Environment Minister Malcolm Turnbull will make a decision this week on the fate of a A$2 billion ($1.78 billion) Gunns pulp mill in Tasmania state. The mill is opposed by environmentalists and high-profile people such as actress Cate Blanchett.
Sino Gold Mining Ltd. (SGX AU), the owner of China second-largest gold mine, gained 34 cents, or 4.5 percent, to A$7.86. The company recently purchased subsidiary Golden China Resources Corp. made $31 million in the year to June 30.
Tags: actress, brisbane, cate, cate blanchett, malcolm turnbull, target