This morning the Australian shares dropped, led by energy and metals & mining stocks, after the US and European markets overnight closed lowered in quiet trade. Both the S&P/ASX200 Index and the broader All Ordinaries Index fell by approximately 0.7 per cent.
The Australian market delivered a strong opening on Monday as investors were inspired by the US Federal Reserve Chairman Ben Bernanke's comments. Wall Street rallied on Friday after Mr. Bernanke said the central bank will do whatever it takes in to support an economic recovery. This morning the local market saw a 1.6 per cent rise in S&P/ASX200 index, and the All Ordinaries gained 1.5 per cent.
The Australian shares started lower on Friday. Overnight Dow Jones index fell below the psychologically 10000 mark on continued worries about US economic growth. Investors were increasingly nervous ahead of the US government's Friday release second-quarter GDP number. Shortly after the local market opened, the S&P/ASX200 Index was down 0.53 per cent, while the broader All Ordinaries Index lost 0.5 per cent.
Atlas Iron Limited (ASX:AGO) is pleased to report its audited financial statements for the year ended 30 June 2010 as Atlas enters its the next phase of its growth. The Company's operations recorded a positive cashflow in the second half of the financial year. This milestone came on the back of improved iron ore prices and, importantly, reduced cash operating costs delivered by Atlas, as production levels began to ramp up. Atlas achieved operating cash inflows of A$8.5 million for the second half, while funding the build of significant inventory levels in readiness for export, as port capacity at Utah Point becomes available.
Atlas Iron Limited (ASX:AGO) is pleased to report that the implementation of the merger between Aurox Resources Limited (ASX:AXO) (PINK:AUOXF) and Atlas by way of scheme of arrangement has taken place today (Scheme).
Gravity survey results over Venus Metals Corporation Limited (ASX:VMC) Radi Hills IOCG/base metal target(*) show that the Radi Hills magnetic high has a coincident "bullseye" 5 mGal gravity high typical of Iron oxide-Copper-Gold (IOCG) deposits.
Following the recent resource upgrade and positive beneficiation test results we have reinitiated coverage of Pluton Resources (ASX:PLV). We rate PLV a Speculative Buy with a target of A$0.76/share - based on our risked DCF valuation.
