Gold deal dazzles as ASX inches higher

The benchmark S&P/ASX200 index firmed just 9.3 points or 0.13 per cent to 7379.2, while the All Ordinaries Index inched 9.2 points or 0.12 per cent higher to 7713.2.

CommSec said investors shrugged off a mixed lead from US and European markets amid persistent concerns about inflation.

OMG chief executive Ivan Tchourilov noted it was the second positive finish for the week after substantial drops on Tuesday and Wednesday.

The best performer on the ASX 200 index was Evolution Mining, which surged 9.73 per cent to $4.40 after announcing late on Wednesday it had inked a deal with Swiss giant Glencore to acquire the Ernest Henry copper-gold mine northeast of Cloncurry in Queensland for $1bn.

“It is a world-class asset in Australia and one which we know extremely well due to our successful investment in the asset in 2016 and are proud that it will once again be 100 per cent Australian owned,” chairman Jake Klein said.

Mr Tchourilov said the deal would lower Evolution’s all-in sustaining cost per ounce and provide an immediate cash flow increase.

“Evolution already had an economic interest in the mine via a joint venture with Glencore. They’re now taking over operations and 100 per cent of the produced metals while smelting and refining in Glencore’s Queensland facilities,” he said.

“Investors who couldn’t get in on the $200m private placement have opted to gain exposure on the market today, driving up the price.”

Sonic Healthcare provided a trading update at its annual general meeting showing EBITDA in the four months to October 31 lifted 16 per cent compared to the same period last year, sending its shares 3.03 per cent higher to $39.75.

Treasury Wine Estates put on 2.58 per cent to $11.54 after sealing a deal to acquire luxury Napa Valley wine business Frank Family Vineyards for $US315m ($A432.8m).

Poker machine maker Aristocrat Leisure booked a more than 80 per cent surge in full-year normalised net profit, raised its dividend to 26 cents per share compared with 10 cents a year ago and announced that JKO Play had made a counter offer to its planned $3.9bn acquisition of UK gambling software group Playtech.

Aristocrat shares slid 3.6 per cent to $45.64.

Mosaic Brands, the fashion retailer behind chains including Rockmans, Rivers and Noni B, again surged in the wake of its AGM comments on Wednesday about customer growth and expansion plans, including launching four brands into the US market.

Shares in Mosaic jumped 8.27 per cent to 72 cents.

Shoe retailer Accent Group announced it had been appointed the new exclusive distributor in Australia and New Zealand for Reebok for an initial 10-year term, sending its shares 0.78 per cent higher to $2.57.

“Accent Group plans to grow the Reebok brand in ANZ through Reebok’s existing wholesale accounts, direct online sales and through Accent Group’s multi-brand retail banners, all of which currently stock the brand including Glue Store, Stylerunner, Pivot, The Trybe, Platypus and Hype DC,” it said.

Nufarm rose 5.23 per cent to $4.83 after Wilsons Equity Research and Citi said the agricultural products company’s full-year results released on Wednesday showed better than expected EBITDA performance, with Citi slapping a buy recommendation and target price of $6 on the stock.

Industrial property giant Goodman Group added 1.79 per cent to $24.49 after reaffirming its full-year earnings guidance at its AGM.

ANZ dipped 1.29 per cent to $27.48, Commonwealth Bank gave up 1.55 per cent to $97.46, National Australia Bank declined 0.69 per cent to $28.71 and Westpac shed 0.98 per cent to $22.15.

Rio Tinto lifted 0.68 per cent to $89.51 and BHP added 0.22 per cent to $36.04, but Fortescue slid 1.6 per cent to $15.34.

The Aussie dollar was fetching 72.72 US cents, 53.93 British pence and 64.27 Euro cents in afternoon trade.

Originally published as Australian sharemarket snaps two-day losing streak, investors cheer Evolution’s $1bn Qld copper-gold mine buyout