Resource players are the big movers following phase-one US-China deal
Reporting season is underway, and the bullish runs of last week morphed into a tidy package of positive gains led by the mining majors yesterday. But the small caps are also on the run.
The All Ordinaries’ had its fifth trading day of positive returns on the ASX, adding 16 points to end the day 0.22 per cent higher at 7,196.30 points.
Australia’s market has been rallying after US President Donald Trump signed off on phase-one of a US-China trade deal to right “the wrongs of the past”. His words.
Australia’s gains continued on Monday. Positive gainers on the ASX included major miner Silver Lake Resources (ASX:SLR) which added 6 per cent to end the day at $1.50.
Already on some people’s buy list, the $1.3 billion producer reported record production of 68,519 ounces of gold and 691 tonnes of copper (71,008 ounces gold equivalent) in the December quarter of 2019.
The gold company’s quarterly sales of 66,074 ounces gold and 694 tonnes copper fetched an average sale price of $2,028 an ounce at all-in sustaining costs (AISC) of $1,192 an ounce.
Silver Lake snapped up junior explorer Egan Street Resources (ASX:EGA) during the quarter to increase its gold reserves and end the period with $186m or 20 per cent more cash.
The bigger company increased its production guidance to 240,000-250,000 ounces of gold equivalent for this financial year at a decreased AISC of $1,300-1,350 an ounce.
Fifteen million, or $23m worth of shares, in Silver Lake were traded yesterday.
Andrew Forrest’s Fortescue Metals Group (ASX:FMG) was another miner beating the pack yesterday.
The $35.2 billion iron ore miner’s quarterly is still coming but it has continued its upward trend since Wednesday when CEO Elizabeth Gaines said she expected more modest growth this year than last.
She tipped strong demand for higher grade concentrate which produces more steel with each tonne processed and less emissions.
Fortescue added 4 per cent to trade at $11.83 by the final bell yesterday after investors traded 16 million or $183m worth of its shares.
Another resources company with a big price move yesterday was small cap Antipa Minerals (ASX:AZY), which continues to gain after big guy Rio Tinto (ASX:RIO) earned a majority stake in Antipa’s Citadel project.
Antipa’s shares closed 21 per cent up at 1.5c yesterday after about 16 million or $226,800 worth of shares changed hands.
Copper producer Aeris Resources (ASX:AIS) also advanced yesterday, ending the day 14 per cent higher after extending a debt facility to the start of July next year.
The copper miner convinced major shareholder PAG fund subsidiary Special Portfolio Opportunity V to push out the maturity dates for two funding tranches to July 1, 2021 from March this year.
A 20km pipeline at Tritton near Nyngan in New South Wales is due to be finished by the end of the month.
Aeris ended yesterday at 5.8c after about 124,000 or $7,084 shares were swapped by traders.