3 Resources Stocks That Thumped the Market
Sydney -- The S&P / ASX 200 Index (INDEX: ^AXJO) has posted a small rise today, climbing 5.6 points to close at 4,438.6, after Australia's trade deficit widened the most in four years, on the back of falling commodity prices. The deficit widened to $2 billion in August, the eighth straight month of deficits, and the terms of trade (a relative measure of exports versus imports) fell well below the government's expected level to return a budget surplus. An 11% fall in coal exports and a 7% drop in iron ore exports accounted for much of the deficit.
Despite the bad news, these three stocks managed to post rises of more than 5%.
Discovery Metals Limited(ASX: DML.AX) posted a 7% gain to close at $1.455, continuing its impressive run. In the last five days, the copper miner has seen its share price rise by more than 23%. Discovery Metals is focused on copper exploration and production in Botswana, Africa. Its 100%-owned Boseto Project started production in the first half of this year, and production is expected to ramp up to 50,000 tonnes of copper per year.
Bathurst Resources Limited(ASX: BTU.AX) added 2.5 cents to close at 43 cents, a rise of 6.2%. The coking coal company is currently fighting environmental appeals against its Escarpement mine project, with the appeal date set for mid- to late October. The company is fairly confident the appeals will be overturned, as the area has been heavily mined in the past.
Gindalbie Metals Ltd(ASX: GBG.AX) rose 5.1% to end at 31 cents. The company gave a presentation today, and announced that production of iron ore at its 50% owned Karara mine is expected to commence shortly, and all necessary infrastructure is in place. Gindalbie has a life-of-mine contract with partner Ansteel for its Karara iron ore, virtually guaranteeing demand for its product for many years.
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