News

August 16, 2008

That Was The Week That Was ... In Australia

By Our Man in Oz

Minews. Good morning Australia, another tough week at the office?

Oz. It certainly was, especially for smaller companies with low cash reserves and no immediate prospect of generating earnings from mining. To put it bluntly, some of those might not make it far into next year. On a more positive note, it’s worth reporting that the commodities demand from China is showing no sign of abating, with Hong Kong’s specialist trader, Noble Group, lifting volumes substantially in the first half of the year and still finding time to take a pot shot at the financial sector for getting its knickers in a knot.

Minews. Now that news from Noble is interesting. Tell more.

Oz. The devil will of course be in the detail, but the essential message from Noble is that demand for raw materials in China remains as strong as ever. In the half year to 30th June it lifted revenue by a whopping 98 per cent to US$19.9 billion, and profit by an even more impressive 191 per cent to US$289 million. Noble’s boss, Richard Elman, hates this point, but the relatively small profit is a guide to the fine margins on his...