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Winners and Losers: Copper firm digs deep for stock market gains

Surging copper and gold prices led to big gains for two South Australian miners.

May 27, 2024, updated May 27, 2024
Copper Search will start drilling programs at two of its prospective mine sites. Photo: Copper Search.

Copper Search will start drilling programs at two of its prospective mine sites. Photo: Copper Search.

Both Copper Search and Koonenberry Gold were beneficiaries of rising prices for commodities last week, pushing them to the top of the Winners list.

Copper Search had a strong start to last week after confirming two of its prospective copper deposits were drill-ready.

The Norwood-based miner said its Douglas Creek and Paradise Dam copper prospects were ready to be tested, with drilling to commence in June.

Victorian contractor Titeline Drilling has been awarded the drill contract for both mines, which is expected to take about six weeks to complete.

The copper price also rose by about 23 per cent over the past year to date, buoying firms like Copper Search.

Meanwhile, Koonenberry Gold was a beneficiary of a 13 per cent year-to-date increase in the gold price.

The company’s drilling projects for its Atlantis and Bellagio mines have now been completed – as announced last month – and investors eagerly await results from both programs.

Papyrus Australia, PNX Metals and Petratherm rounded out the Winners list last week.

Of the Losers, Neurizer topped the list after falling by 33.33 per cent last week. The company posted no new updates in the five days.

Resolution Minerals also fell by 33.33 per cent in the five days, and was followed by Iondrive and Otto Energy.

Mayne Pharma recorded a 13.97 per cent drop in its share price over the five days.

Last week, the company updated the market about its exposure to a US cyber-attack. In February, a cyber-attack on Change Healthcare – the largest US clearing house for medical claims – sent shockwaves across the sector.

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The attack impaired the ability of prescriptions at certain pharmacies to be fulfilled to customers, which resulted in the temporary non-fulfilment of certain prescriptions including for Mayne Pharma products.

Mayne Pharma said last week that normal fulfilment operations affecting its products resumed in April and that the incident “did not have a material impact on its business”.

Mayne Pharma also reiterated its outlook for the first half, backing revenue and earnings growth.

Across the global markets, Baker Young Limited analysts said another better-than-expected quarterly result and positive outlook from US tech firm Nvidia – helping power the AI boom with its computer chips – was not enough to keep US markets from falling late in the week.

Further, BHP shares were down 2.83 per cent over the five days last week after yet another of its offers to acquire British miner Anglo American was rejected.

A poor trading update from Telstra led to a 6 per cent decline, while Sonic Healthcare fell 7 per cent after hinting at tougher trading conditions next year.

The full list of Winners and Losers for the week ending 24 May:

Data compiled by Baker Young Limited analysts. 

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