Gold continues to trade at well over US$1000 an ounce and its advance has been hastened by fractures within the EU over Greece's sovereign debt problems.
Naturally enough, gold miners are doing well, but Australia's top producer, Newcrest, is not resting on its laurels.
Newcrest has made a big play
for Lihir Gold, but Lihir so far is playing hard to get.
Undeterred, Newcrest went on to announce that it would proceed with the US$1.8 billion development of the massive Cadia East copper-gold porphyry project, on the eastern flank of the Cadia Hill mine, in the Orange District of New South Wales.
Cadia East is expected to become the largest underground gold mine in Australia and is destined to expand Cadia Valley's total annual production to 700,000 to 800,000 ounces a year. The mine will also have some of the lowest costs in the world.
Newcrest may not be successful with Lihir, but Cadia East holds much promise.
Nuplex back on track
Last year's big rights issue from resins and coatings maker Nuplex Industries was a bold move aimed at fixing its balance sheet, which had become stretched after the company acquired some assets from Akzo Nobel in 2005.
Nuplex's share price fell in an immediate response to news that the Securities Commission had filed civil proceedings against the company and six current and former directors.
Nuplex has said it will defend its actions vigorously. Meanwhile, the debt crisis has passed for Nuplex and the company is now in the midst of a robust earnings rebound. For the six months to December 31, 2009 Nuplex reported a net profit of $34.6 million compared with a $6 million profit in the previous corresponding period.
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