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ASX closes down as this mining play shoots higher

Monday, January 11, 2016 by Proactive Investors

The Australian All Ordinaries fell below the 5,000-point mark today

The Australian All Ordinaries fell below the 5,000-point mark today

The Australian All Ordinaries was down 1.2% today at 5,991 points on more discouraging overseas leads and more choppiness in commodity pricing.

Mining stocks were the hardest hit, down almost 3% as a group, with mixed performances in base metal valuations, lower gold prices and troubling supply-demand dynamics for energy commodities.


MARKET WATCH


Shares in Cape Lambert Resources, however, closed 57.1% higher at A$0.022 after the company secured A$4 million in new funding to support more streamlined operations as part of the diversified developer’s first capital raising since 2005.

With acknowledgement to the difficult macro conditions facing many companies in the mining space, Cape Lambert is strengthening its cash position via a fully underwritten placement to UK and European sophisticated investors at A$0.0425 per share.

This represents a 300% premium to Cape Lambert’s last closing price, demonstrating strong confidence by global investors in the company's assets and management.

The fact that a placement priced at such a high premium has been fully underwritten in the current investment environment reflects extremely positively on market confidence in Cape Lambert’s business model.

The fundraiser demonstrates international support for the company on the heels of a strong internal vote of confidence from chairman Tony Sage, who acquired more than 29 million shares in an off-market trade last year.

Importantly, this is Cape Lambert’s first capital raising in more than ten years, a period during which the company returned more than $250 million of value to shareholders via dividends, capital returns, in specie distributions and share buy-backs.


BLUE CHIPS

Major miners
 
BHP Billiton (ASX:BHP) down 4.8% to $15.57
Fortescue Metals Group (ASX:FMG) down 5.1% to $1.64
Newcrest (ASX:NCM) up 0.1% to $13.41
Rio Tinto (ASX:RIO) down 3.3% to $40.51


Energy or Oil and Gas

Oil Search (ASX:OSH) down 1.2% to $6.47
Santos (ASX:STO) down 5.6% to $3.19
Woodside Petroleum (ASX:WPL) down 1.8% to $27.67


Big 4 banks

ANZ Bank (ASX:ANZ) down 1.6% to $25.14
Commonwealth Bank (ASX:CBA) down 0.9% to $78.70
National Australia Bank (ASX:NAB) down 0.9% to $27.46
Westpac (ASX:WBC) down 1.4% to $30.57


Other banks, financials and industrials

AMP (ASX:AMP) down 1.7% to $5.33
Bank of Queensland (ASX:BOQ) down 1.3% to $12.86
Bendigo and Adelaide Bank (ASX:BEN) down 0.4% to $11.21
Macquarie Group (ASX:MQG) down 3.4% to $74.27
Suncorp (ASX:SUN) up 0.3% to $11.53
Telstra (ASX:TLS) up 0.4% to $5.32


Retailers

JB Hi-FI (ASX:JBH) up 1.5% to $20.50
Wesfarmers (ASX:WES) up 0.3% to $39.77
Woolworths (ASX:WOW) down 0.1% to $22.85


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