Logo of Phnom Penh Post newspaper Phnom Penh Post - Record gold prices fail to translate for miners

Record gold prices fail to translate for miners

Record gold prices fail to translate for miners

AUSTRALIAN miner Southern Gold saw its share price tumble nearly 12 percent last week, despite gold prices reaching record highs on world markets.

The firm announced an A$1.23 million (US$1.15m) net loss for the financial year to June 30, including a writedown of A$1.48 million for its Australian and Cambodian operations, in a statement to the Australian Stock Exchange on Friday.

Southern Gold, which is exploring concessions in northeastern Cambodia, saw its share price close Friday down 2.63 percent at A$0.74.

Its shares fell 11.9 percent over the week despite reporting a maiden gold resource of 80,000 ounces at its Western Australian tenement Monday, and gold prices hitting new records around the world.

Israel-based casino operator Queenco Leisure International saw its share price fall after announcing it was entering Asia via a joint venture with the owner of Sihanoukville’s Holiday Palace Hotel, Paradise Investment Co.

The firm will take over management and renovation of the site for a 25-year lease beginning in April next year.

Tel Aviv-listed parent Queenco Ltd fell 1.8 percent to 391.70 Israeli shekels (US$107.01), from 413.40 shekels, on Monday. It fell a further 1.15 percent on Tuesday closing at 387.20 shekels, and did not trade for the rest of the week.

Inditex, which contracts manufacture of its Zara global clothing line to Phnom Penh-based SL Garment Processing, dropped with the news of a 68 percent increase in half-year net profits but bounced back by the end of the week.

The Spanish company posted a better-than-expected net profit for the six months ending July 31, of €628 million (US$847 million), up from €374.8 million for the same period last year.

Revenues increased 14 percent to €5.53 billion during the period.

However, the good news was tempered by slowing third quarter sales to September 20. Inditex reported the same day that sales were up 10 percent compared to the third quarter last year, a slight dip from the 14 percent increase for the first half, attributing the slowdown to tougher comparisons with strong sales in 2009.

The company closed 1.9 percent lower on Wednesday to €57 in Madrid. It recovered by the end of the week, rising 4.9 percent to €59.82.

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