That Was The Week That Was ... In Australia
12 Apr 2014
>>> by Our Man in Oz <<<
Minews. Good morning Australia, you seem to have had an exciting week without actually going anywhere.
Oz. That’s one way of describing a week when the market went up, the market came down, and we finished up within a fraction of a point at where we started, with one exception, gold.
Minews. Surely your nickel stocks did well given the sharp rise in the price of that metal.
Oz. They did, and we’ll get to them, but the overall trend, as measured by the various indices was largely neutral, perhaps influenced by the negative sentiment flowing out of the big tech-stock sell-off on Wall Street, and speculation that a wider correction is coming.
Minews. Do you believe that will affect the mining sector?
Oz. Now, that’s the interesting question because it’s my belief that money rushing out of nonsense tech stocks with their overblown valuations could find its way back into something more substantial, such as mining stocks.
There’s no evidence of that, yet, but the 6 per cent rise in the gold index on the Australian market was a timely reminder that investors appear to be seeking something more tangible than a piece of computer code for a hand-held toy.
Minews. So, the gold index up, and everything else flat, which means we should start our look at prices with gold, and any eye-catching news makers.
Oz. We’ll go to the newsworthy stocks first because we had a few interesting ones last week, with none more so than Padbury Mining (PDY) which doubled over the course of the week, but was up by 225 per cent at one stage, earning a stock-exchange speeding inquiry while raising eyebrows almost as fast as it raised its share price.
Minews. Do tell more about Padbury, a stock with a very low profile over this way.
Oz. And, I suspect destined to resume that position once the dust settles on its claim to have secured 100 per cent equity funding for a A$6 billion deepwater port and rail system for its iron ore project on the mid-west coast.
That announcement, made on Friday after a two-day self-requested trading suspension, sent Padbury into orbit as it rocketed up from A1.6 cents to A5.2 cents in heavy turnover.
The stock exchange, naturally, questioned Padbury management, but that’s unlikely to be where the matter ends because most people familiar with the Oakajee port project, which Padbury says it will develop, doubt that a company with a stock-market value of A$111 million can raise A$6 billion in equity given that it appears to have liquid assets totalling A$2 million.
Minews. It does seem a bit of a heavy lift for a small miner.
Oz. You are being kind. The point about Oakajee is that some of the world’s biggest engineering and construction companies have tried to make that project stand up during previous mining booms, and all failed.
...
Source >>> www.minesite.com
12 Apr 2014
>>> by Our Man in Oz <<<
Minews. Good morning Australia, you seem to have had an exciting week without actually going anywhere.
Oz. That’s one way of describing a week when the market went up, the market came down, and we finished up within a fraction of a point at where we started, with one exception, gold.
Minews. Surely your nickel stocks did well given the sharp rise in the price of that metal.
Oz. They did, and we’ll get to them, but the overall trend, as measured by the various indices was largely neutral, perhaps influenced by the negative sentiment flowing out of the big tech-stock sell-off on Wall Street, and speculation that a wider correction is coming.
Minews. Do you believe that will affect the mining sector?
Oz. Now, that’s the interesting question because it’s my belief that money rushing out of nonsense tech stocks with their overblown valuations could find its way back into something more substantial, such as mining stocks.
There’s no evidence of that, yet, but the 6 per cent rise in the gold index on the Australian market was a timely reminder that investors appear to be seeking something more tangible than a piece of computer code for a hand-held toy.
Minews. So, the gold index up, and everything else flat, which means we should start our look at prices with gold, and any eye-catching news makers.
Oz. We’ll go to the newsworthy stocks first because we had a few interesting ones last week, with none more so than Padbury Mining (PDY) which doubled over the course of the week, but was up by 225 per cent at one stage, earning a stock-exchange speeding inquiry while raising eyebrows almost as fast as it raised its share price.
Minews. Do tell more about Padbury, a stock with a very low profile over this way.
Oz. And, I suspect destined to resume that position once the dust settles on its claim to have secured 100 per cent equity funding for a A$6 billion deepwater port and rail system for its iron ore project on the mid-west coast.
That announcement, made on Friday after a two-day self-requested trading suspension, sent Padbury into orbit as it rocketed up from A1.6 cents to A5.2 cents in heavy turnover.
The stock exchange, naturally, questioned Padbury management, but that’s unlikely to be where the matter ends because most people familiar with the Oakajee port project, which Padbury says it will develop, doubt that a company with a stock-market value of A$111 million can raise A$6 billion in equity given that it appears to have liquid assets totalling A$2 million.
Minews. It does seem a bit of a heavy lift for a small miner.
Oz. You are being kind. The point about Oakajee is that some of the world’s biggest engineering and construction companies have tried to make that project stand up during previous mining booms, and all failed.
...
Source >>> www.minesite.com
