Rising commodity prices continue to benefit South Australian resources companies has been saved
Rising commodity prices continue to benefit South Australian resources companies
Percentage change by quarter to 31 March 2017
Local resources companies continued to benefit from rising commodity prices. They accounted for six of the eight largest positive contributors to the Index, the top eight increases in share price over the quarter, and contributed $414 million to the market capitalisation of the Index over the March quarter.
Deloitte Financial Advisory’s South Australia Lead Partner Stephen Adams said: “Sustained and strong sentiment towards the resources sector as a result of upward trends in commodity prices, have come to fruition in the recent half year results announcements of a number of South Australian operators. The sector has clearly generated some momentum over the last six months.”
A number of resources companies announced positive, and significantly improved, results during the quarter, including Ramelius Resources Limited and Iron Road Limited.
Stronger financial positions overall have allowed many companies to raise funding for capital investments over the last 12 months, and the results of these investments are now materialising as operators companies announce positive developments across both new and existing projects,” Adams said.
These include top Deloitte SA Index performers such as Havilah Resources NL, which announced upgrades to gold prospects at its Kalkaroo project near Broken Hill, and Investigator Resources Limited, which recently announced the interception of new high grade silver at its Paris Project on the Eyre Peninsula of South Australia.
Positive contributions to the Deloitte SA Index by Materials companies in the 2017 March quarter
Largest share price increases by resources companies in the 2017 March quarter.
Major South Australian ASX listed company movements
Flinders Mines Limited was the biggest positive contributor to the Index in the March quarter, contributing an increase of 2.3%. Its share price jumped 117.1% in the quarter, and its market capitalisation grew by $204.6 million.
The three largest increases on a share price basis for the March quarter were:
- Thor Mining PLC, which increased 171.4% from $0.007 per share to $0.019 per share
- Flinders Mines Limited, which increased 117.1% from $0.035 per share to $0.076 per share
- Hillgrove Resources Limited, which increased 97.6% from $0.042 per share to $0.083 per share.
There were no entries or exits from the Index in the March quarter.