Company briefs

Transfield Services’ 2011 statutory net profits after tax will take a $12.2 million hit from a reduction in the fair value of Loy Yang A Power Station.

• Updated Aug 19, 2011

Afternoon resources round-up

Pacific Energy, Transfield Services, Helix, Red Hill Iron, Aquila Resources, UXA Resources, Pacific Niugini, Eldore Mining, Montezuma Mining, Alkane Resources, Raisama, Gulf Industrials.

• Updated Aug 17, 2011

Brief: Red Hill Iron

Corporate news snapshot for Red Hill Iron

• Nov 24, 2009

Brief: Red Hill Iron

Corporate snapshot for Red Hill Iron

• Nov 23, 2009

• Street Talk

Street Talk

Posco chatter boosts Macarthur rivals

• Jun 24, 2008
• Edited by: Jemima Whyte (jemima.whyte@afr.com.au)

BHP and Rio rocket on rumours

The rumour mill was working in overdrive on Wednesday afternoon, sending both BHP Billiton and Rio Tinto to new record highs. Excluding copper, base metals and oil prices were up, which provided a solid base for all sorts of gossip to stir up the market with Merrill Lynch's mining conference in Miami in the background. BHP Billiton (BHP) All the talk in the market on Wednesday afternoon was that a Chinese group, perhaps Chinalco, was about to buy a stake or make a bid for BHP Billiton. A number of investment banks were linked to a possible transaction, but sources in Australia played down their involvement. It didn't stop people piling into the stock, pushing it up $2.78, or 6.1 per cent, to a record close of $48.56. Chief executive Marius Kloppers has previously talked up the possibility of the Chinese buying in after snaring a 9 per cent stake in Rio Tinto, stoking speculation. Rio Tinto (RIO) On the Rio Tinto front there was talk that BHP Billiton was set to increase its bid for the company, either by adding a cash component or increasing the scrip ratio to something like 3.8 shares for each Rio Tinto share. Now would seem an odd time to change the bid terms, given that regulators are being spoken to about the competition implications of the proposed deal. However, comments from BHP Billiton chief executive Marius Kloppers on United States television that seemed to leave the door open for introducing a cash component could have stirred the rumours. Rio shares closed up $6.60, or 4.6 per cent, at a record $151.10. Red Hill Iron (RHI) Shares in iron ore junior Red Hill Iron also reached a record on Wednesday, closing up XX at XX. Investors in the illiquid stock seemed to have woken up to the fact it had 40 per cent (which will be diluted to 20 per cent) of a 350 million tonne iron ore resource. The Perth-based group is working in a joint venture with Aquila Resources and private equity group AMCI as part of Aquila and AMCI's West Pilbara joint venture. A pre-feasibility study completed last week suggests a development is viable, with first production likely in 2012. There is also the definite potential for corporate activity before then as well. Shares closed up 19¢, or 2.7 per cent, at $7.24.

• May 14, 2008
• Michael Vaughan

AMCI poised for Red Hill play

The aggressive move by AMCI onto the share register of iron ore junior Red Hill Iron has again sparked talk the resources-focused private equity outfit may be positioning itself for a takeover with joint venture partner Aquila Resources.

• Mar 27, 2008
• Michael Vaughan

Perilya, CBH merge to form leading zinc producer

A strong night for base metals in London provided the perfect backdrop for more corporate activity in the Australian resources space on Wednesday that helped boost the wider sector. BHP Billiton and Rio Tinto led the S&P ASX 200 Resources Index higher with solid gains for a number of coal and iron ore stocks. Expect plenty to be said about the end of Xstrata and Vale's merger talks and heaps of commentary from Rio Tinto chief executive Tom Albanese,who is hosting a round of media briefings in Melbourne on Wednesday. Key movers included: Perilya (PEM) Long-awaited and much-needed corporate activity finally found its way to ailing base metal miner Perilya on Wednesday with a merger with CBH Resources. The combined group will be worth about $450 million and be ranked in the top 10 global lead and zinc producers. Perilya shareholders will offer one share for every three CBH Resources shares plus one Perilya option with a strike price of $2 for every 20 CBH shares held. The fact Perilya shares are only worth about 25 per cent of what they were six months ago means CBH shareholders fair better in the merger, but then again the outlook for Perilya shareholders without the merger wasn't great. The stock closed up 14.5¢ at $1.15. CBH Resources (CBH) CBH chief executive Stephen Dennis will lead the new group and Perilya chairman Patrick O'Connor will retain his position. CBH's major shareholder, Japan's Toho Zinc, has supported the transaction. The new company will be capable of producing at least 220,000 tonnes of zinc and 70,000 tonnes of lead annually. Prior to the scheme of arrangement being voted on, CBH will spin out a number of its non-core assets into a new float called Kimberley Metals. CBH shareholders will receive one Kimberley Metals share for every 9.2 shares held. The float's price has yet to be determined but guidance of $25 million was given on a conference call this morning. CBH shares closed up 5¢ at 39.5¢. Red Hill Iron (RHI) Private equity group AMCI (American Metals and Coal International) agreed to buy Giralia Resources' 16.8 per cent stake in iron ore group Red Hill Iron for $46.5 million in a transaction with wider strategic implications. Red Hill was trading at $5.20 at the end of trade on Tuesday so the transaction was done at a significant premium. Perth-based Red Hill has a joint venture with Aquila Resources and AMCI over a number of iron ore tenements in the Pilbara, which have 350 million tonnes of resources with more drilling to come. It's worth watching this situation closely because there is plenty more happening behind the scenes. Red Hill shares closed 56¢ higher at $5.76. Newcrest Mining (NCM) It was a return to form for Australia's biggest independent gold miner that was in line with gold prices clawing back the ground it lost last week in trading overnight. Newcrest is in the running to become the strategic partner of Harmony Gold for its Papua New Guinea operations and a decision was expected this month. However, the timetable has been pushed back by a couple of weeks and nothing is expected until mid- to late-April now. AngloGold Ashanti, Barrick Gold and Newmont Mining are also in the hunt, so it is by no means a certainty. Newcrest shares closed up $1.83 at $32.63.

• Mar 26, 2008
• Michael Vaughan

Pipeline in full flow for 2007 . . . to follow a record year for exchange listings

Strong global and local equity markets should keep floats buoyant this year, writes Henry Byrne.

• Jan 6, 2007
• Henry Byrne.

• Market Wrap

Red Hill basks in Pilbara sunshine

Red Hill Iron's transformation from a gold and base metals miner into predominantly an iron ore miner was greeted enthusiastically by investors yesterday, on its first day as a listed company on the Australian Stock Exchange.

• Feb 15, 2006
• Richard Hemming