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Market:	ASX
Sector:	General Mining
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Proactive Investors Australia

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Strong commodities lift ASX resources, led by Oil Search Holdings, Medusa Mining and Northern Iron

Wednesday, February 22, 2012 by Christine Feary

Australian resource stocks held steady in today’s trade despite some weakness in the overall market, with Oil Search Holdings and Medusa Mining up, while majors BHP Billiton and Rio Tinto were among the few to fall.

The overall Australian market closed marginally higher today, with the All Ordinaries index up 0.1% at 4,372.1 points.

However, strength in precious metals has buoyed Australian resource stocks in today’s trade, with spot gold jumping 1.5% to US$1760 an ounce earlier, while silver was 2.3% higher at US$34.50 per ounce.

Shares in the majority of top 20 resource stocks by market capitalisation stayed strong to the end, with Oil Search Holdings (ASX: OSH) leading the way, up 3.57% at $6.96.

Medusa Mining (ASX: MML) won favour with investors, up 3.27% at $6.32 upon the release of the company’s results for the half year to December 2011.

Medusa announced an interim un-franked dividend payment of $0.05 per share payable on March 23, 2012.

Northern Iron (ASX: NFE) performed well, gaining 3.11% to $0.83, followed by Mineral Deposits (ASX: MDL), up 2.77% at $6.30.

Meanwhile, Woodside Petroleum (ASX: WPL) shares were up 2.53% at $36.86 after dipping to a low of $36.01 in early trade.

Woodside released its full year 2011 results briefing today, which showed that production fell 11% to 64.6 million barrels of oil equivalent from 2010, impacted by one-off events of divestments and a severe cyclone season.

Reported profit was also down, sliding 4.3% due to lower sales volume, higher exploration expenses and the impact of the Pluto delay mitigation costs. However, these factors were largely offset by higher prices across all products.

Senex Energy (ASX: SXY) was close behind, gaining 2.5% to $1.025 on the back of successful appraisal drilling at the company’s Growler-8 hole in South Australia’s Cooper Basin.

The success of this hole is significant in that it has extended the limits of the Growler oil field in the western flank of the basin.

Growler joint venture partner Beach Energy (ASX: BPT) was also lifted by the news, its shares trading 0.3% higher at $1.69.

Shares in Perseus Mining (ASX: PRU) closed 2.44% higher at $2.94 while Newcrest Mining (ASX: NCM) closed up 2.14% at $35.85.

Newcrest today received conditional approval for its application to list on the Toronto Stock Exchange (TSX).

The company expects that the remaining conditions will be satisfied and that trading in the company’s shares on the TSX could begin as early as March 2012.

Santos (ASX: STO) shares gained 1.35% in today’s trade to close at $14.31, while Iluka (ASX: ILU) closed 1.28% higher at $17.43 and Fortescue Metals Group (ASX: FMG) finished the day 0.36% higher at $5.54.

Meanwhile, mining giant BHP Billiton (ASX: BHP) slid 0.08% to 36.41, finishing ahead of Rio Tinto (ASX: RIO) which closed down 0.91% at $68.53.

OZ Minerals (ASX: OZL) also closed lower, down 0.36% at $11.11, followed by Paladin Energy (ASX: PDN), 0.85% lower at $1.745.

Shares in African Iron (ASX: AKI) fell 0.89% to $0.56, with the company releasing a letter to investors urging them to accept a takeover offer from Exxaro Resources (JSE: EXX).

Consideration for the takeover is $0.51 per share and $0.31 per option cash, with an additional $0.06 per share and $0.06 per option if Exxaro achieves a relevant interest of 75% or more by 4pm WST on February 28.

Finally, Atlas Iron (ASX: AGO) shares slid 0.95% to close at $3.12, followed by Lynas Corporation (ASX: LYC), down 1.15% at $1.29 and Alumina (ASX: AWC), down 2.1% to $1.165.

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