metals

Gold powers to 6-month high as turmoil spurs demand for haven

SINGAPORE (Dec 31): Gold is rallying into the end of 2018 as turmoil in global equities, the partial US government shutdown and concerns about the outlook for next year stoke demand, lifting prices to the highest in six months.

Bullion climbed as much as 0.4% on Wednesday, extending last week’s gain and on course for the biggest monthly advance since January 2017. Money managers are the most bullish on prices they’ve been in half a year.

Dragon Group in reverse takeover of African mining company for $500 mil in cash and new shares

SINGAPORE (Oct 19): Mainboard-listed Dragon Group International is diversifying from electronics into mining although investor interest after the announcement remained muted.

It is acquiring a 100% stake in Coeur Gold Armenia (CGA), a precious metal mining company based in the Seychelles, in exchange for $500 million in cash and new shares.

Dragon Group will pay a $200,000 cash deposit along with the issue of 2.5 billion new shares at the price of 20 cents per share, or 88% of its share capital.

Civmec sees FY17 earnings halve to $8.4 mil on lower revenue

SINGAPORE (Aug 22): Civmec, the integrated construction and engineering services provider, announced earnings of $8.4 million for the full year ended June, down by half from the $17.4 million reported in FY16 on lower revenue.

Revenue for the full year declined 12.8% to $346 million from $396.7 million for the previous year, due to prior delays which took place earlier in the year in terms of securing and commencing new projects.

The rise and fall of a commodities giant in Asia

Richard Elman, Noble Group

(June 5): The profit warning landed at 10.37pm Singapore time on a Tuesday in early May. It was the night before a holiday in the city-state where shares of Noble Group are traded. The market would be closed the next day, giving investors more than 24 hours to digest the information. On Thursday the stock fell 32%, its biggest-ever one-day drop. It’s fallen further since.

Gold rooster coins are a hot commodity

Image: Bloomberg

SINGAPORE (Feb 16): The Perth Mint, which refines nearly all the bullion output from the world’s second-biggest producer, sees rising sales this year as global concerns trigger demand for haven assets.

Uncertainty over the new leadership in the US and concerns over bank debt issues in Europe, as well as a drop in prices and demand for special edition Lunar New Year coins, helped boost sales recently, said Neil Vance, group manager of minted products at The Perth Mint. About 80% of the mint’s coins and minted bars are exported to the US and Germany, he said.

The China X-factor that puts steel’s surprise comeback at risk

SHANGHAI (Feb 14): Steelmakers aren’t out of the woods yet. A year-long resurgence risks cooling as a slowdown in China’s property market deepens, exposing bullish sentiment as overblown, according to a U.S.-based hedge fund manager and former Citigroup Inc. analyst.

Investors are pouring into gold

NEW YORK (Feb 3): The Federal Reserve has emboldened gold bulls.

Prices and trading volumes surged Thursday on call options giving holders the right to buy bullion at higher prices. On Wednesday, investors poured US$413 million ($583 million) into SPDR Gold Shares, the largest ETF backed by the metal, recouping almost half of the money that exited last month.

Yuan weakness is metals’ strength: Bloomberg Gadfly

SINGAPORE (Nov 17): Most commodities are denominated in, and therefore pegged to, the US dollar but these days the Chinese yuan is starting to have as much influence on prices.

While there were fundamental triggers behind the recent spike and drop in raw materials, it's becoming clear that Chinese trading was among the main drivers. Investors in the northeastern city of Dalian have been piling back into commodities in a replay of what happened earlier this year. That's partly because they're seeking to protect their global purchasing power as the Chinese currency loses value.

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