Newcrest to buy billion dollar stake in Canada mine: The ASX 0.5% down at noon

Market Reports

by Rachael Jones

The Australian share market dropped at the open and continued to struggle throughout the morning now tracking 0.5 per cent lower at noon. One of the world's largest gold mining companies Newcrest (ASX:NCM) saw their shares jump today after reporting their plans to acquire a copper-gold mine in Canada. Funeral services provider, InvoCare (ASX:IVC) saw a dip in their shares today after announcing the successful completion of its fully underwritten institutional placement. The Placement raised approximately $65 million. The best-performing sector is Real Estate Investment Trust so far today - while the worst performing sector is Energy.

The S&P/ASX 200 index is 29 points down at 6,175. On the futures market the SPI is 25 points lower.

Company news

Gold miner Newcrest Mining (ASX:NCM) has agreed to acquire a majority stake in copper and gold mine in Canada for $1.12 billion. They plan to acquire a 70 per cent joint-venture interest in, and operatorship of, the Red Chris mine and surrounding tenements in British Columbia from Toronto-listed Imperial Metals Corp. Red Chris is an operating open-pit mine with mineral resources of 20 million ounces of gold and 13 billion pounds of copper. Shares in Newcrest Mining (ASX:NCM) up 2.7 per cent at $25.17.

Keith Lamb has become executive director of Kangaroo Island Plantation (ASX:KPT). Until now he has acted in a non-executive capacity. He will act as deputy CEO, reporting to the Managing Director, John Sergeant. Shares in Kangaroo Island Plantation (ASX:KPT) down 0.5 per cent at $2.00.

Fiona Murdoch has been appointed to the board of Metro Mining (ASX:MMI). She has over 28 years of experience in the resources and infrastructure sectors in Australia and internationally. She sits on the Board of Building Queensland and on the Joint Venture Committee for the West Pilbara Iron Ore Project. Shares in Metro Mining (ASX:MMI) down 3.5 per cent $0.14.

Best and worst performers

The best-performing sector is Real Estate Investment Trust, down 0.1 per cent, while the worst performing sector is Energy, shedding 1.9 per cent.

The best performing stock in the S&P/ASX 200 is Perpetual (ASX:PPT), rising 6.2 per cent to $40.86, followed by shares in Saracen Mineral Holdings (ASX:SAR) and St Barbara (ASX:SBM).

The worst performing stock in the S&P/ASX 200 is Bingo Industries (ASX:BIN), dropping 5.28 per cent to $1.53, followed by shares in Seven West Media (ASX:SWM) and Beach Energy (ASX:BPT).

Commodities and the dollar

Gold is trading at US$1,298 an ounce.
Iron ore price fell 2.1 per cent to US$85.77
Iron ore futures are pointing to a fall of 1.7 per cent.
One Australian dollar is buying 70.29 US cents.