The S&P / ASX 200 rose surged 31 points today, or 0.7% to 4,559.4, its highest level since July 2011.
As I mentioned earlier today, the index is up more than 12% in just over four months. News that Spain had avoided a ‘junk’ rating on its sovereign debt, and US housing starts had increased 15% last month saw US markets rise overnight.
These three stocks thrashed the market, adding more than 10%.
Mount Gibson Iron (ASX: MGX) climbed 18% to 78.5 cents, after the company announced that iron ore shipments had increased 52% in the September quarter, compared to the previous year. The miner also reported that it had cut $120 to $150 million of capital and operating expenditure from its 2013 financial year budget. In another cost cutting measure, 270 positions will be cut, including 140 contractors. The company is still targeting sales of between 8 to 8.5 million tonnes of iron ore for this financial year.
Another iron ore miner, Gindalbie Metals (ASX: GBG) jumped 10.5% to end at 31.5 cents, after the company reported that it had dispatched its first shipment of iron ore from its Karara Project in Western Australia. The project is is 50% owned by Ansteel, China’s second-largest steel maker and biggest iron ore producer.
Mining contractor, Imdex Limited (ASX: IMD) saw its shares rise 10.3% to close at $1.56, after the company reported an upbeat assessment of the first quarter in financial year 2013, and remained cautiously optimistic about the rest of the year. With its core business focused on gold and copper mining, high prices for both commodities offer opportunities for Imdex. The company also stated that strong demand in the oil and gas sector saw customers increasingly rely on the company’s technologies to deliver efficiencies.
The Foolish bottom line
Many of our smaller resources stocks and the mining services sector have been hammered on concerns over falling commodity prices and fears of the impact of cancelled or delayed projects. It now appears that some of those falls have been overdone.
If you only invest in one company this year, make it our “Top Stock for 2012-13”. Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.
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Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned. The Motley Fool’s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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