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Epic	ASX
Time:	11:19:00
Mid Price:	2905.64
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Fifty Two Week High:
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Period & price data

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Now:	2905.64
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Additional information

Additional	Information
Market:	All Share Index
Sector:	General Mining
Epic:	ASX
News:	Latest news
Web Site:	UK Market Wrap
Other Articles:	19-03-201019-03-201018-03-2010

Gold, silver and platinum slide to weaken Randgold, Yamana, Fresnillo and Lonmin as FTSE 100 falls

Overview: the US stock market expectedly declined in early trade with the main indices starting the day with small losses, cooling off after gaining about 1.5% yesterday. The Dow Jones Industrial Average was down 0.3%, the S&P 500 index slid 0.2%, while the Nasdaq composite shed 0.5%. The economic data released this morning was mixed as while the US GDP growth for the third quarter was revised down to an annual rate of 2.8% from 3.5%, the S&P Case-Shiller home price index update showed an increase in home prices in the third quarter.

The FTSE 100 turned negative following the weak start on Wall Street, sitting about 0.5% below the opening level at the end of the day.

Part-nationalised bank Lloyds (LSE: LLOY) was in the lead with a 3% advance after announcing a £13.5 billion cash call. Engineering firm Invensys (LSE: ISYS), retailer Marks & Spencer (LSE: MKS) and insurer Prudential (LSE: PRU) followed with gains of over 2%. Satellite-based phone network operator Inmarsat (LSE: ISAT), inter-dealer money broker ICAP (LSE: IAP) and United Utilities (LSE: UU) also did well, tacking on more than 1.5%.

The biggest fallers of the day notably included another bailed out bank RBS (LSE: RBS), which was at the bottom of the pile with a 3% loss. Most mining stocks were in decline, responding to decreases in metal prices. Vedanta Resources (LSE: VED), Rio Tinto (LSE: RIO), Kazakhmys (LSE: KAZ) and Xstrata (LSE: XTA) all lost more than 1.5%.

Thomas Cook Group (LSE: TCG), insurance focused investor Resolution (LSE: RSL) and energy services business AMEC (LSE: AMEC) also were in selling mode, shedding 2.5%, 2% and 1.5% respectively.

Commodities

Oil prices declined further in the afternoon with January Brent Crude sliding to US$76.32/barrel, while US light, sweet crude for January delivery retreated to US$75.78/barrel.

All major oil and gas stocks fell. Petrofac (LSE: PFC) was at the bottom of the pile with a 1.4% slide, Shell (LSE: RDSB) was close with a 1% decline, while fellow supermajor BP (LSE: BP) lost less than 1%. BG Group (LSE: BG), Cairn Energy (LSE: CNE) and Tullow Oil (LSE: TLW) also posted marginal losses.

Kazakhstan operating Max Petroleum (LSE: MXP) was the biggest faller among the junior, slipping 13%. Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) followed with a 7% decline, while Europe focused oil and gas developer Ascent Resources (AIM: AST) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) both shed 3%.

Precious metals slightly declined from today’s highs as gold retreated to US$1,168/oz after hitting $1,170, while silver was down to US$18.47/oz. Platinum held steady at US$1,457/oz.

Most mining stocks turned negative today with the sole exception of platinum miner Lonmin (LSE: LMI), which posted a small gain. Gold miner Randgold Resources (LSE: RRS) was the biggest faller in the sector in the FTSE 100 with a 1.7% loss, while silver miner Fresnillo (LSE: FRES) declined marginally.

Specialty chemicals firm Johnson Matthey (LSE: JMAT) shed slightly more than 1%.

Yamana Gold (LSE: YAU) declined marginally.

Aquarius Platinum (LSE: AQP) sank to the bottom of the sector with a 6.2% decline. Fellow midcaps silver producer Hochschild Mining (LSE: HOC) and gold miner Petropavlovsk (LSE: POG) lost about 1.5%.

Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM), which announced an update from its wholly owned Vatukoula gold mine in Fiji, were the top performers among the small caps with gains of 8% and 5% respectively.

Turkey focused gold miner Ariana Resources (AIM: AAU) and South American based explorer Mariana Resources (AIM: MARL) both advanced 3%.

Tajikistan operating gold miner Kryso Resources (AIM: KYS) headed in the opposite direction, shedding 4%. South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) followed with losses of 3%.

 

Base metals were in decline today with copper and nickel retreating to US$3.09/lb and US$7.42/lb respectively, while zinc fluctuated around US$1/lb.

Most base metals focused stocks declined with the exception of Anglo American (LSE: AAL), which advanced 1.5%, and Eurasian Natural Resources (LSE: ENRC), which posted a marginal gain.

Kazakhmys (LSE: KAZ) and Vedanta Resources (LSE: VED) were at the bottom of the pile with losses of 2%. Xstrata (LSE: XTA) and Rio Tinto (LSE: RIO) lost 1.5% and 1% respectively, while Antofagasta (LSE: ANTO) and BHP Billiton (LSE: BLT) declined marginally.

London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) corrected after its recent losses, shedding 8%.

Most small caps followed the trend. Australia focused coking coal producer Caledon Resources (AIM: CDN) lost 7%, while Laterite nickel specialist European Nickel (AIM: ENK) and zinc mining and recycling specialist ZincOX (AIM: ZOX) both shed 5%. South Africa based coal exploration and production company Strategic Natural Resources (AIM: SNR) dropped 3.5%.

Banks, insurance, private equity

The banking sector was mixed today. Part-nationalised bank Lloyds (LSE: LLOY) was the top performer, gaining 2.7% after announcing a £13.5 billion cash call. Barclays (LSE: BARC) also was on the rise, posting a small gain. Another bailed out bank Royal Bank of Scotland (LSE: RBS) lost 3.5%, while Standard Chartered (LSE: STAN) and HSBC (LSE: HSBA) moved down about 1.5%.

With the exception of Standard Life (LSE: SL) and Old Mutual (LSE: OML), which posted insignificant losses, the insurance sector was in buying mode today. Car insurer Admiral Group (LSE: ADM) and Prudential (LSE: PRU) were in the lead with gains of 2%. Legal & General (LSE: LGEN) gained less than 1%, while Aviva (LSE: AV) and RSA Insurance Group (LSE: RSA) rose marginally.

Private equity group 3i (LSE: III) tacked on 1%.

Small Cap Movers

Other notable movers among the small cap included environmental science and technology company Accsys Technologies (AIM: AXS), which advanced 7.7%, and novel eco-technology company for human, animal and environmental health TyraTech (AIM: TYR), which plunged 26%.

Large and Mid Cap News

De La Rue (LSE: DLAR) said it has delivered a strong performance in the first half to September 26 2009, reflected by a 3% year-on-year increase in revenue and a 17% increase in operating profit. Following the half year results De La Rue remains confident in the outlook for the full year.

Rio Tinto’s (LSE: RIO) Iron Ore subsidiary has agreed a deal with Iron Ore Holdings (ASX: IOH) (‘IOH’), whereby Rio will purchase up to 1.5 million tonnes of iron ore annually from IOH’s Phil Creek deposit in the Pilbara region of Western Australia. The innovative deal also opens the potential for Rio to acquire a stake in IOH’s Iron Valley deposit.

International oil and gas facilities company Petrofac (LSE: PFC) announced it has established a Joint Venture (‘JV’) agreement with Saudi Arabian investment company, the Zamil Group. The JV intends to create and operate a new oil and gas service centre facility in the Kingdom of Saudi Arabia.

Wallbridge Mining Company (TSX: WM) and FTSE 100 platinum miner Lonmin (LSE: LMI) have approved C$1.25 million for the 2010 work programme on their Sudbury Camp Joint Venture (SCJV) properties.

Aquarius Platinum Limited (LSE: AQP) (‘Aquarius’) announced it intends to make an offering of approximately US$250 million of unsubordinated, unsecured convertible bonds with a 2015 redemption. The Bonds will be convertible into Aquarius Platinum shares and are expected to have a coupon in the range of 3.50% - 4.25% per annum. Goldman Sachs (NYSE: GS) is acting as sole Bookrunner in connection with the Offering.

In a statement released this morning, Informa (LSE: INF) confirmed press speculation that it is considering the acquisition of Springer Science + Business Media (‘Springer’). Informa revealed it is in discussions with Springer’s major private shareholders, Cinven and Candover and it has received due diligence materials from the company.

In its full year results for the period ended 30th September, specialist buy-to-let and consumer finance lender, the Paragon Group of Companies (LSE: PAG) (‘Paragon’) said it has fared well with increased profits and above-industry-average arrears performance.

Small Cap News

Finders Resources' (ASX & AIM: FND) Wetar Copper Project comprises two high grade deposits, Kali Kuning and Lerokis, which are located within 3km from the coast and suitable for open pit mining.

Discovery Metals (ASX: DML, AIM: DME) has delivered a five-fold increase in its market cap over the last 12 months, as revealed during the company's annual general meeting presentation.

Iron ore focused investor Red Rock Resources (AIM: RRR) said that it had recovered from the “great pressure” from the declines in liquidity and commodity prices, reporting greater net asset value after a series of successful transactions, while expecting more progress from its key investees, Jupiter Mines and Resource Star.

Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL) has secured the services of Polish drilling company Nafta Pila to drill two appraisal wells on its Siekierki tight gas project in Poland, which it said would likely flow at higher rates than the previously drilled vertical well.

Thailand operating exploration and production company Coastal Energy Company (TSX-V: CEN, AIM: CEO) has completed the Songkhla A-08 oil development well on Block G5/43 in the Gulf of Thailand, which logged 92 feet of net pay with 18% porosity in the Lower Oligocene primary reservoir.

IP commercialisation company Amphion Innovations (AIM: AMP) has announced that its investee company WellGen Inc was recognised as an innovator in Global Business Insights’ newly released report “Key Players and Innovative Start-Ups in Nutraceuticals,” which analysed companies engaged in commercialising nutraceuticals including household names like Nestle, Danone, Abbott, DSM and Provexis.

Western Coal Corp (AIM: WTN) confirmed it has been serviced a proposed class action lawsuit commenced by the Ontario Superior Court of Justice last week, alleging inaccurate disclosure of the company’s financial report for fiscal Q2 2007.

Conroy Diamonds and Gold (AIM: CDG) has reported the results from rock chip sampling at its Clay Lake gold anomaly in county Armagh, which indicated the presence of a broad zone of mineralisation and quartz stockwork and returned the highest gold values ever recorded by the company.

Biomaterials and medical device developer AorTech International (AIM: AOR) has secured a US$0.5 million order for its Elast-Eon polymer, which is the largest in the company’s history.

Business Control Solutions Group PLC (AIM: BCT) is seeking shareholder approval to delist from AIM and re-register as a private company, roughly two months after flagging it was considering the merits of maintaining its AIM listing.

EMED Mining’s (AIM: EMED) plans to restart the Rio Tinto copper mine in Spain’s Andalucia province have received a welcome boost as the relevant authorities have now cleared the company to prepare and submit the full set of detailed plans for operations and rehabilitation of the ‘Proyecto Rio Tinto’ and proceed with all other administrative steps required for the planned 2010 start-up.

Stratex International PLC’s (AIM: STI) recent move into Ethiopia seems to be paying off. The company announced positive gold results this morning from its exploration programme at the 50 square kilometres Shehagne exclusive exploration licence in the North of the country.

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