CAPITAL MARKETS

Staying in the black

MINING companies continued to tread water as patchy metals pricing seemed to anchor the otherwise positive sector while the broader market climbed

Justin Niessner

The S&P/ASX 200 index hit its highest mark of the month today, scraping as high as 5541 points before closing 0.3% above yesterday’s close at 5527.

The performance featured another restrained showing by the mining industry, with the basic materials sector only budging 0.3% higher on the session and government numbers reinforcing some depressed sentiment.

The Australian Bureau of Statistics today identified the mining and manufacturing sectors as leading a national decline in pre-tax earnings and profits in 2012-13.

Mining operating profit before tax declined 34.3% over the year while earnings before interest, tax, depreciation and amortisation fell 23.5%.

Rio Tinto, however, managed a 0.3% gain on the day to $A61.40 and BHP Billiton added 0.3% to $37.99.

Iron ore companies were mostly subdued as the commodity’s spot price seemed to stabilise just above $US98 per tonne, although Australasian Resources offered a standout performance in the sector, with a 25% rise to A2.5c.

Gold was perhaps the most dramatically affected corner of the mining industry, as the price of the precious metal ticked down to $US1264 per ounce on dwindling haven support from Ukraine-focused investors.

Yellow metal players charting double-digit losses on the day included Ramelius Resources, Enterprise Metals, Renaissance Minerals, Mutiny Gold, Manas Resources and Metaliko Resources, which fell 20% to A2c.

Resources and Investment, meanwhile, soared 57.1% to 16.5c on high-grade copper-gold sampling at the Cheroona project in Western Australia.

Elsewhere, Stratum Metals fell 38.1% to 1.3c and Audalia Resources lost 16.7% to 12.5c.

The Australian dollar was last trading at US92.65c.

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