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Metcash Limited (MTS) and the Mitre 10 Group announced that more than 98% of Mitre 10’s shareholders had voted in favour of Metcash injecting an estimated $55 million of new equity capital into the Mitre 10 Group, in return for the issue of a 50.1% interest. Metcash said the transaction is still conditional on court approval of the schemes of arrangement and there being no prescribed occurrences or material adverse changes occurring before completion. The company said completion is expected to occur by 31 March 2010.

Peak Resources Limited’s (PEK) Alastair Hunter said the company had not experienced any political issues in Tanzania due to its positive relationship with the government. His view reaffirms

comments earlier last week from Lihir Gold acting CEO Phil Baker that Australia presents a greater sovereign risk to the miner than many African countries.

Speaking at a presentation to Shaw Stockbroking, Mr Hunter said the mining potential of Tanzania today is where Western Australia’s was in the 1980’s.

“We actually have less hassle from Tanzania than Western Australia,” Mr Hunter said.

”The fact is Australia has more sovereign risk than Tanzania.”

With four of its priority seven projects located in the East African nation, the junior miner’s words would have been comforting for investors.

The chairman was confident the company’s multi-commodity Ngualla project had “undeniable” potential to be a world-class project. The project is considered to be one of the largest mineralised carbonatites at over 3.5km by 3.5km.

Mr Hunter noted that mining at the project was low cost due to the depths and relative ease the soil was to dig. The deposits also include base metals copper, lead and zinc.

At present the major concern seemed to be the completion of the road to the project.

“This could take anywhere between 3 and 30 years,” Mr Hunter said light heartedly.

The project includes targets of rare earth elements such as Niobium and Tantalum, which the chairman said were the “commodities of the future”, as well as Titanium and Phosphate.

”We want to be a JORC compliant company by the end of this calendar year,” Mr Hunter added. 

Looking at the Lake Victoria Goldfield, located in the third largest gold producing area of Africa, Mr Hunter was excited by size of the deposits.

“There are huge gold deposits, the area is grossly under explored,” he said.

Mr Hunter said the African’s had put down 400 shafts in relation to the Imweru prospect, which was a positive sign.

“If the Africans use them and they’re getting gold, you know it’s quite good,” he said.

At home, Peak is facing difficulties with obtaining Aboriginal clearance for its Three Rivers Project in Western Australia.

Mr Hunter said the company would not require a capital raising this year as it has enough money “in the bank”, while he confirmed Peak had received interest from Japanese and financial groups, however nothing had eventuated.

“As it stands now we are not going to be talking to anybody.”

“We are starting to get on the radar screen,” Mr Hunter concluded.

Peak shares climbed 2c to 15c on Friday.

Peak Resources Limited’s (PEK) Alastair Hunter said the company had not experienced any political issues in Tanzania due to its positive relationship with the government. His view reaffirms

comments earlier last week from Lihir Gold acting CEO Phil Baker that Australia presents a greater sovereign risk to the miner than many African countries.

Speaking at a presentation to Shaw Stockbroking, Mr Hunter said the mining potential of Tanzania today is where Western Australia’s was in the 1980’s.

“We actually have less hassle from Tanzania than Western Australia,” Mr Hunter said.

”The fact is Australia has more sovereign risk than Tanzania.”

With four of its priority seven projects located in the East African nation, the junior miner’s words would have been comforting for investors.

The chairman was confident the company’s multi-commodity Ngualla project had “undeniable” potential to be a world-class project. The project is considered to be one of the largest mineralised carbonatites at over 3.5km by 3.5km.

Mr Hunter noted that mining at the project was low cost due to the depths and relative ease the soil was to dig. The deposits also include base metals copper, lead and zinc.

At present the major concern seemed to be the completion of the road to the project.

“This could take anywhere between 3 and 30 years,” Mr Hunter said light heartedly.

The project includes targets of rare earth elements such as Niobium and Tantalum, which the chairman said were the “commodities of the future”, as well as Titanium and Phosphate.

”We want to be a JORC compliant company by the end of this calendar year,” Mr Hunter added. 

Looking at the Lake Victoria Goldfield, located in the third largest gold producing area of Africa, Mr Hunter was excited by size of the deposits.

“There are huge gold deposits, the area is grossly under explored,” he said.

Mr Hunter said the African’s had put down 400 shafts in relation to the Imweru prospect, which was a positive sign.

“If the Africans use them and they’re getting gold, you know it’s quite good,” he said.

At home, Peak is facing difficulties with obtaining Aboriginal clearance for its Three Rivers Project in Western Australia.

Mr Hunter said the company would not require a capital raising this year as it has enough money “in the bank”, while he confirmed Peak had received interest from Japanese and financial groups, however nothing had eventuated.

“As it stands now we are not going to be talking to anybody.”

“We are starting to get on the radar screen,” Mr Hunter concluded.

Peak shares climbed 2c to 15c on Friday.

Local stocks continued a common theme for the week, finishing the day near where it started. On Monday the ASX/200 closed at 4807 points and has closed no less than this, or higher than 4820 on any day for the rest of the week – a range of just 0.3%.

At the end of the day, the All Ords had added 6.0 to 4,831.5, while the ASX/200 gained 3.9 to 4,818.1. Over 2.1 billion shares worth around $3.9 billion had changed hands.

The Bank and Financials sector advanced 0.2%.

The big four banks were little changed, with two above and two below the gain line.

ANZ was the best performer, up 20c to $24.26, while NAB tacked on 15c to $26.90.

The insurers were mostly flat, including IAG with a modest 1c gain. The company said it has received more than 24,000 claims following Victorian storms earlier this month.

AXA Asia-Pacific rose 9c to $6.31.

CFS Retail Property gained 0.3% to $1.89 after Goldman Sachs upgraded its rating on the stock to “buy”. The Property Trust sector was down 0.1%.

The Materials and Resources sector was up 0.2% with little influence from Australia’s largest miner, BHP Billiton.  

BHP shares dipped 16c to $42.85 and Rio Tinto added 41c to $75.96 after their stocks fell 2.1% and 1.6% respectively in London. 

CBH Resources shares were halted much of the day before confirming it had received a bid from Belgian miner Nyrstar. The news sent CBH shares nearly 30% higher when they resumed trading shortly after 3pm.

Cape Lambert jumped 9% to 48.5c after the company announced the sale of its Lady Annie copper mine in Queensland to Hong Kong's China Sci-Tech Holdings for $135 million.

Lihir Gold and Incitec Pivot put on 3.8% and 1.9% to $3.01 and $3.66.

Woodside led the Energy sector 0.4% higher with a 14c, or 0.3% gain to $45.41.

Santos advanced 19c to $14.06, while Caltex Australia rallied 29c, or 2.6% to $11.43.

Extract Resources gained 7c to $7.18 as the uranium explorer said it hoped to announce an updated Rössing South resource in the third quarter of this year.

Industrials weakened 0.4% following a 2.4% fall to $7.29 from sector heavyweight Brambles.

Leighton, Toll and MAp were down 0.3%, 0.8% and 1.2% respectively, while Transurban rose 5c to $5.21.

It was a mixed day for the Consumer Discretionary sector, which edged 0.2% into the red.

Billabong slumped 2.5% to $10.60, while department store David Jones rallied 1.6% to $5.16.

Oroton, which spiked 8.8% yesterday, tacked on another 5.6% after posting strong earnings results yesterday.

Myer added 6c to $3.50 as brokers remain firm on their preference for MYR despite the group’s cautious 2H10 sales outlook. Several brokers maintained their buy recommendations on the stock in reports this morning as they look past 2H10.

Gamers and media stocks were little moved, while Amalgamated Holdings outperformed, climbing 3.6% to $5.70.

Consumer Staples stocks countered each other. Wesfarmers slid 31c to $31.98 and Woolworths rose 14c to $28.50.

The grain handlers slumped with Viterra, Graincorp and AWB shedding 1.9%, 1.9% and 3.6% respectively.

The sector was 0.3% below the line.

Telstra was down 1c at $3.06. The Telecommunications sector dipped 0.3%.

Around the region, the Nikkei 225 added 73.8 to 10,738.7, while the NZSE50 edged 1.7 higher to 3,225.1. The Straits Times Index gained 5.4 to 2,879.3 and the Hang Seng shed 16.8 to 21,211.4.

Spot gold was trading at US$1,112.55 per ounce, while the Aussie was buying US$0.9162.

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Extract Resources mine on track
Extract Resources said that its Rossing South project in Namibia still has the potential to be one of the world’s largest uranium mines as the feasibility study into the mine continues. The uranium miner said it hoped to announce an updated Rössing South resource in the third quarter of this year.

At the close, Extract Resources shares were up 7c to $7.18.

Cape Lambert to sell Lady Annie for $135m
Cape Lambert Resources shares climbed Friday morning after the company said its has entered into an agreement with Hong Kong company China Sci-Tech Holdings Limited (“CST”), for the sale of its 100% interest in the Lady Annie Project in Queensland for $135 million. The Australian iron ore explorer said CST is proposing to fund the acquisition from existing cash reserves and liquid assets.

At the end of the day, Cape Lambert shares were up 4c to 48.5c. 

IAG takes a hit from storms

Insurance Australia Group has said it has received more than 24,000 claims following Victorian storms earlier this month. Following the storms, IAG said natural peril costs were now estimated to exceed the budgeted $184 million allowance for the second half by $105 million.

At the bell, IAG shares were up 1c to $3.96.

Australian stocks followed a positive lead from Wall Street overnight to be 0.2% higher by midday. Most sectors were within 0.4% of the gain line as investors remained cautious following the release of rising inflation figures out of China yesterday.

At noon, the All Ords had added 8.9 to 4,834.4, while the ASX/200 gained 8.4 to 4,822.6. Over 850 million shares worth around $1.4 billion had changed hands.

The big four banks were within 0.6% above the gain line as the Bank and Financials sector advanced 0.4%.

ANZ was the best performer, up 15c to $24.21.

IAG and Suncorp-Metway were flat as they face significantly reduced financial results for the second half of the year due to storms in Queensland and Victoria.

QBE and AXA Asia-Pacific rose 1% and 1.4% to $21.28 and $6.31.

CFS Retail Property gained 1.5c, or 0.8% to $1.90 after Goldman Sachs upgraded its rating on the stock to “buy”. The Property Trust sector was up 0.2%.

The Materials and Resources sector was flat after a fall in metals prices in London.

BHP Billiton dipped 17c to $42.84 and Rio Tinto added 54c to $76.09 after their stocks fell 2.1% and 1.6% respectively in London. 

CBH Resources shares were halted after the company said it received a proposal from a party which may lead to a change of control transaction.

Cape Lambert jumped 11.2% to 49.5c after the company announced the sale of its Lady Annie copper mine in Queensland to Hong Kong's China Sci-Tech Holdings for $135 million.

Lihir Gold and Incitec Pivot put on 1.4% and 1.9% to $2.94 and $3.66.

Woodside led the Energy sector 0.4% higher with a 29c, or 0.6% gain to $45.56.

Santos advanced 14c to $14.01, while Caltex Australia rallied 36c, or 3.2% to $11.50.

Extract Resources dropped 8c to $7.03 as the uranium explorer said it hoped to announce an updated Rössing South resource in the third quarter of this year.

Industrials weakened 0.2% following a 2.8% fall to $7.26 from sector heavyweight Brambles.

Leighton, Toll and MAp were all down 0.3%, while Asciano rose 1.5c to $1.855.

A mixed morning from retailers best summarised the Consumer Discretionary sector, which edged 0.1% into the black.

Billabong slumped 2.7% to $10.58 as department store David Jones rallied 2% to $5.18. 

Myer added 2c to $3.46 as brokers remain firm on their preference for MYR despite the group’s cautious 2H10 sales outlook. Several brokers maintained their buy recommendations on the stock in reports this morning as they look past 2H10.

Gamers and media stocks were little moved, while Amalgamated Holdings outperformed, climbing 4.4% to $5.74.

Consumer Staples stocks cancelled one another out. Wesfarmers slid 11c to $32.18 and Woolworths rose 12c to $28.48.

Telstra was flat at $3.07.

Around the region, the Nikkei 225 added 84.8 to 10,749.7, while the NZSE50 edged 0.2 lower 3,223.2. The Straits Times Index gained 7.9 to 2,881.8. 

Spot gold was trading at US$1,111.00 per ounce, while the Aussie was buying US$0.9156.

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Extract Resources mine on track
Extract Resources said that its Rossing South project in Namibia still has the potential to be one of the world’s largest uranium mines as the feasibility study into the mine continues. The uranium miner said it hoped to announce an updated Rössing South resource in the third quarter of this year.

At lunch, Extract Resources shares were down 7c to $7.04.

Cape Lambert to sell Lady Annie for $135m
Cape Lambert Resources shares climbed Friday morning after the company said its has entered into an agreement with Hong Kong company China Sci-Tech Holdings Limited (“CST”), for the sale of its 100% interest in the Lady Annie Project in Queensland for $135 million. The Australian iron ore explorer said CST is proposing to fund the acquisition from existing cash reserves and liquid assets.

Half way through the day, Cape Lambert shares were up 5c to 49.5c.

Insurance Australia Group Limited (IAG) has said it has received more than 24,000 claims following Victorian storms earlier this month. Following the storms, IAG said natural peril costs were now estimated to exceed the budgeted $184 million allowance for the second half by $105 million.

IAG said that the company was ‘refining’ its FY10 insurance margin guidance to between 10.5% – 12.0%, from 11.5% – 13.0%.

The group now expects the related claim cost to reach its maximum event retention of $135 million under the Group's reinsurance cover.

”The Group’s ER for any subsequent event in calendar year 2010 now reduces to $75 million,” CEO Michael Wilkins said.

At lunchtime, IAG shares were trading up 4c to $3.99.

Extract Resources Limited (EXT) said that its Rossing South project in Namibia still has the potential to be one of the world’s largest uranium mines as the feasibility study into the mine continues. The uranium miner said it hoped to announce an updated Rössing South resource in the third quarter of this year.

”The updated estimate is expected to increase the overall size and confidence levels of the Rössing South resource,” the company said in a statement.

Studies to fully define the costs associated with procurement of water, power and acid delivery, together with external infrastructure including rail and road, are ongoing.

At 1135 AEDT, Extract Resources shares were down 11c to $7.00.

Brokers are staying firm on their preference for MYR despite the group’s cautious 2H10 sales outlook. Alongside the broadly positive 1H10 result, the retailer lowered expectations on 2H sales, citing the pcp boost from one-off stimulus payments.

Brokers are generally looking past 2H10, noting that the group is entering a growth phase with the store network expected to expand around 20% over the next five years. Beyond the sales momentum from the larger store footprint Goldman Sachs (BUY, PT: $4.95) notes that gross margins are also expected to expand.

Echoing this view, Deutsche Bank (BUY, PT: $4.60) says the FY11 outlook is substantially better than 2H10. Credit Suisse (OUTPERFORM, PT: $5.10) notes there will be an FY11 boost from the Myer Melbourne refurbishment, new stores at Top Ryde and Robina, and a generally improving consumer environment.

Beyond the group’s medium term growth prospects, brokers are attracted to the stock on valuation grounds. There appears to be a general view that Myer is trading at a significant discount to comparable companies, however most acknowledge that the company needs to develop a positive track record before closing the gap on DJS.

JPMorgan downgrades MSL to NEUTRAL with a price target $2.95.

Goldman Sachs JPWere upgrades CFX to BUY with a price target of $2.05.