Australian shares experienced gains near midday AEST, driven by a rally in the mining sector as gold prices reached record highs. Seven West Media and Southern Cross Media Group saw significant increases following the announcement of their merger plans. Investors are keenly awaiting the Reserve Bank of Australia’s upcoming interest rate decision.
In other news, Deutsche Bank has appointed receivers for a portfolio of pubs owned by Jon Adgemis, with McGrathNicol taking on the role. Separately, KordaMentha has been appointed as voluntary administrator for Adgemis’ development group. Meanwhile, Alcoa is set to take a $1.35 billion hit from the closure of its Western Australian refinery. This decision by the US aluminium giant comes as the Australian government explores ways to support domestic smelters and enhance downstream processing and refining capabilities.
Elsewhere, Sandon Capital, a major investor in Southern Cross, has criticised the proposed merger with Seven West as ‘diworsification’. Managing Director Gabriel Radzyminski has openly condemned the board’s decision to agree to what he describes as a ‘value-destructive’ union with Kerry Stokes’ network. Finally, Argonaut, a Perth brokerage that raised $1.7 billion for miners in 2024-25, predicts gold could reach $US4500 and lithium prices will surge due to tightening supplies of critical minerals.
