The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) was up 0.6% in mid-afternoon trade. However, shares of the following four companies were soaring more than 3% higher.
- BHP Billiton Limited (ASX: BHP) – up 3.6%
BHP Billiton shares have come under heavy selling pressure in recent weeks after successive falls in iron ore and oil prices, and a mining disaster in Brazil, sent a wave of investors towards the exit. Yesterday evening, Samarco, a joint venture between BHP and fellow iron ore giant Vale, made an announcement regarding the mining disaster in Brazil. Samarco was ordered to pay R2 billion Brazil Real ($690 million) by a Brazilian judge for the initial clean-up. This is less than 10% of the original damages sought by Federal and state governments.
- Rio Tinto Limited (ASX: RIO) – up 4.7%
Fellow iron ore miner Rio Tinto was also among today's top gainers, rising 4.7%. Rio released no company-specific news although a stabilisation of the iron ore price, at slightly more than $US40 per tonne, may have revived faith in the miner's share price.
- Atlas Iron Limited (ASX: AGO) – up 5.9%
Atlas iron climbed as much as 7% today after the embattled junior iron ore miner struck a deal to cut its debt level. In an announcement to the ASX, Atlas revealed it had signed a deal to reduce debt by $US10 million by issuing shares and options to lenders in exchange for them retiring $US132 million of loans. Atlas Iron CEO, David Flanagan, said, "I would like to thank the TLB lenders and their advisors for negotiating in good faith in this time of challenging commodity prices and for agreeing to a sensible and pragmatic restructuring of the TLB debt."
- Qantas Airways Limited (ASX: QAN) – up 3.1%
Qantas shares continued to fly higher today. Relishing the low oil price environment, shares of Australia's 'Flying Kangaroo' have crept more than 50% higher this year. In recent weeks, positive news flow from the company has prompted many analysts to upgrade their price target on the stock. Last week, Credit Suisse analysts put a $5.50 price target on Qantas shares noting the low oil price environment, operational improvements and conducive industry conditions.
