Stock Exchange Task Essay

Stock Exchange Job

Portfolio:

12/03/07

$150 1000 in Rio Tinto Ltd (RIO) @ $74. 84= 2 004 shares 50 dollars 000 in Newcrest Exploration Ltd (NCM) @ $21. 28= a couple of 349 stocks and shares $50 000 in Macarthur Coal Ltd (MCC) @ $4. 55= 10989 stocks and shares $50 000 in Fortescue Metals Group (FMG) snabel-a $18. 05= 2770 stocks and shares Total: 300 dollar 000

18/05/07

2004 stocks [email protected] $90. 91 = $182 183. 64

2359 shares in [email protected] $22. 20 sama dengan $52 369. 80

10989 shares in [email protected] $5. 27 sama dengan $57 912. 03

2770 shares in [email protected] $34. 45 sama dengan $95 426. 50

Total: $387 891. 97

Causes of Choosing This kind of Portfolio:

Choice to begin with fifty percent of my personal portfolio ($150000) invested in Rio de janeiro Tinto Limited, being the 2nd largest international mining business in the world. Having established its presence nationwide over 40 years ago, I actually felt that would be a protect major investment, with its varied interests (outlined below) and a previous history of solid performance up against the ASX50 index. I similarly wanted to invest in Xstrata, nonetheless it is not listed on the ASX.

Of the leftover $150 500, $50 000, or 17% of my personal initial capital each travelled towards Newcrest Mining Limited (Gold), Macarthur Coal Ltd (Coal) and Fortescue Metals Group (Iron). All of these companies appeared to have got strong experience with the potential for further expansion in the near future. In particular, Fortescue seemed to be a strong valerse with iron ore prices doubling in the recent past.

In this way, I thus curved out my own portfolio with 50% in one major gamer in the industry addressing varied interests, and the leftover 50% split evenly among interests in gold, coal and flat iron. Due to this divided, I presumed any adverse fluctuations in specific bottom commodity rates would only affect a tiny section of my own portfolio, minimising the loss.

Organization Overviews:

Rio Tinto Limited:

Originally formed in 1873, Rio Verniciato is the planet's second largest minerals company. " Its activities span the earth but are firmly represented nationwide (15 current operations/prospects) and North America. You will find also significant businesses in South America, Asia, The european countries and the southern area of Africa. ”1 Notable functions within Quotes:

• Full possession of the Hamersley Iron puits (WA), generating 79 208 000 tonnes/year • 53% share in Robe River Iron (WA), 52 932 000 tonnes/year • totally in Argyle Diamond (WA), 29 078 000 carats/year

• many of these in Northparkes Copper (NSW), 83 three hundred tonnes/year

• 75. seven percent in Hunter Valley Coal (NSW), doze 024 1000 tonnes/year

Significant factors impacting on stock:

• Strong bottom metal rates causing extended rise

• Rumours of the $100bn takeover bid by simply BHP Billiton resulted in a cost leap (09/05/07) • Lowering of price pursuing the end in the rumours

Macarthur Coal Limited:

Macarthur Coal, listed on the ASX in 2001, produces the two metallurgical and thermal coal. " Macarthur Coal's principal product is pulverised coal injection coal (PCI) for the production of metallic. Macarthur Coal is a important supplier of PCI fossil fuel to Asia, Europe as well as the Americas, offering approximately 44% of the low volatile PCI coal exported from Australia. ”2

It has interests in two open-cut coal mines: the Coppabella Mine (annual production: some 560 1000 tonnes) as well as the Moorvale Acquire (2 292 000 tonnes/year), in Queensland's Bowen Pot. It also offers 5 even more mining assignments in creation, slated to be complete simply by 2010.

Notable factors impacting on stock:

• Disovery activities during March hampered by rainy weather, protecting against drilling • Production concerns, substantial rain fall & delivery congestion by Dalrymple Bay, leading to reduced sales goal of 3. 7Mt • April: Analysts refer to resurging require in metallurgical (PCI) coal

Newcrest Exploration Limited:

Newcrest currently features five working gold puits, shaped by a strategy of developing large, long life mines or more compact high perimeter mines, that are low on the cost contour. These are:

• Ridgeway, NSW @ 390 000 ounces of rare metal...