At one stage all leading indices, including the all ordinaries, metals and gold, were up less than 1% which is marginally better than no movement at all and certainly better than a field full of falls.

Gold moved further away from the trapdoor price of US$4000 an ounce, avoiding a plunge to the US$3500 an ounce level, which some investment bankers see as the next stop for the metal, with exchange traded fund buying at the highest level in a month.

Locally, gold stocks got a boost from the small end, with serial try-hard Alkane Resources making a move which is likely to be replicated by rivals, paying its first-ever dividend after 60 years in business.

The significance of the 2c per share Alkane payout cannot be overstated because it is tangible proof of the cash sloshing around in gold stocks and a reaction to the new capital gains tax laws which encourage dividends rather than capital gains.

With $432 million in the bank and annual output of 168,000 ounces of gold at an all-in sustaining cost of A$2925/oz (close to half the Australian dollar gold price of A$5950/oz), Alkane is well set to continue rewarding investors with a steady flow of dividends.

Other gold stocks gained ground as interest returned to the sector with news and price moves that included:

  • Northern Star, up $1.63 to $20.85 as interest grows in a possible takeover move before (or during) the annual Diggers & Dealers mining forum in Kalgoorlie early next month. The opening day’s speakers list has Northern Star’s outgoing chief executive Stuart Tonkin bracketed by Jean Robitaille from Agnico Eagle and Francis Swanepoel from Gold Fields, two potential bidders for Northern Star.
  • Benz Mining, up 52c to $2.92 as interest grows in its Glenburgh gold project in WA which CG Capital Market said has the size and quality to be a significant development, lifting its target price for the stock from $4 to $6.
  • Hamelin Gold, up 4c to 15c after reporting bonanza grade intersections from maiden drilling at its Day Dawn project near the big Telfer mine in WA’s Paterson province, including a hit of 3 metres at 93.4 grams a tonne, including 2m at 128.9/oz (more than 4 ounces a tonne).
  • Regis Resources, up 73c at $6.32 despite slightly weaker production guidance and a reduced target price from CG to $6.70 from$7.35. Macquarie is sticking with its target of $6.80, and
  • St Barbara up 5c to 47c after reporting June quarter gold production of 14,658z.

Copper took a peek at a price of slightly above US$6.50 a pound and could be getting ready for a fresh crack at the all-time high of US$6.65/lb reached early last month with traders laying the groundwork for the next move by U.S President Donald Trump who wants to hit copper imports with a 15% tariff in January.

Ten consecutive days of tit-for-tat rocket and drone attacks by the U.S. and Iran largely washed away hope of a peace deal despite speculation that there’s a truce brewing in the wings thanks to the almost complete collapse of trust at any level.

Most local copper stocks reacted positively to the higher metal price and predictions of more to come, led by Sandfire which added $1.88 to $19.62. Capstone rose by $1.12c to $13.73 and Aurelia which is a gold and copper produce added 6c to 33c.

AIC Mines put on 7c to 68c but Bell Potter sees more to come thanks to the company’s strong growth profile which prompted an upgraded target price from 90c to 95c.

Lithium stocks were largely weaker thanks to a 7% fall in the price of the battery metal over the week, possibly caused by concern that mine restarts and new developments could quickly flood the market.

The miners appear unconcerned about short-term moves in the lithium price as demonstrated by a commitment from Perth-based industrial giant Wesfarmers to invest $1.4 billion with its partner, SQM of Chile, in doubling the size of the Mt Holland project in WA.

Investors are not so sure, rubbing $4.42 (4.7%) off the share price of Wesfarmers which dropped to $88.48, a heavy fall for a normally rock-solid business with deep retail and industrial interests.

Smaller lithium companies were hit harder by the lithium sell-off. PLS was 10c weaker at $4.32, Liontown lost 5c to $1.32 and Vulcan slipped 5c lower to $2.69.

Rare earth stocks weakened after news of a poor June quarter by sector leader Lynas which reported reduced output and higher costs which saw the stock shed 58c to $15.37, its lowest price since February.

Other rare earth prices moves including Brazilian Rare Earths, up 4c to $4 and Arafura, down 1c to 20c. Hastings also lost 1c to trade at 29c.

Tungsten producing EQ Resources led the specialist metals sector with a rise of 2c to 27c after a private company of iron ore billionaire Andrew Forrest snapped up a 16.8% stake in the stock in a deal valued at $190 million.

A complex metal which trades most commonly as ammonium paratungstate (APT), tungsten has risen over the past month to US$3279 per metric tonne unit but could go a lot higher as China limits exports and western stockpiles dry up.