London open: FTSE 100 advances as miners rally

13th Apr 2011 08:30

A rally in the mining sector has dragged the top share index to within touching distance of the 6,000 point mark it has been bobbing around since the start of the year.Fresnillo leads the large cap miners higher. The Mexican miner's silver production slipped slightly in the quarter to 31 March, but expanded capacity at its Soledad-Dipolos mine helped lift gold production by 13.3% to 96,407 ounces. Fresnillo's chief executive Jaime Lomelin said the company is on track to produce 44m ounces of silver over 2011.Elsewhere in mining, Rio Tinto said first quarter production in Australia was hit by the extreme weather in the region but most of its operations are now recovering and benefiting from strong prices. Global iron ore production of 42m tonnes attributable was down 3% on the first quarter of 2010 and down 16% on the fourth quarter of 2010. Operations in the Pilbara were disrupted by three tropical cyclones and widespread flooding.Teen outfitter JD Sports Fashion hiked its dividend by about 30% after reporting a sharp rise in profits but said it is "extremely cautious" on the outlook. The sports-themed fashion retailer posted a pre-tax profit of £78.6m in the year to 29 January, up from £61.4m the previous year, on revenues that rose to £883.7m from £769.8m. The full-year dividend is upped to 23p from 18p.Oil and gas firm Tullow Oil has had another success off the coast of Ghana, with the Tweneboa-4 appraisal well in the Deepwater Tano licence encountering gas condensate in good quality sandstone reservoirs. The company added that it is resuming its exploration and appraisal campaign in Uganda. The company expects to have a five-rig drill-out campaign on the go in the second half of this year.Design and engineering consultancy WS Atkins said it expects full year results to be ahead of market expectations after a strong performance at its Middle East business. The group, which is the official engineering design services provider for the London 2012 Games, said overall it had traded well through the fourth quarter. Its UK business continues to perform in line with expectations despite challenging market conditions. Strong growth overseas helped the internet fashion retailer ASOS maintain its upward momentum in the fourth quarter. The firm, which sells clothes inspired by trendy celebrities (the name stands for 'As Seen on Screen') saw year-on-year sales growth of 70% during the quarter, with UK's revenues up 24% to £44.9m and the international division's soaring by 161% to £48.4m.