Top Gainer: Gindalbie (GBG)
Gindalbie, an Australian iron ore exploration company that is stgeloping projects in Western Australia, saw its share price jump 3.0% today in a falling market, rising 2.5 cents to $0.87. As the one of the 10 most shorted stock on the ASX according to last week’s data, GBG has been hammered this year – falling 40% over the past six months alone.
The future of Gindalbie has been put under a cloud since WA’s $4 billion Oakajee port and rail stgelopment was dealt a further blow, after a major foundation customer closed its mid-west iron-ore project. Sinosteel shut down its $2 billion Weld Range iron ore project near Cue in WA, laying off 43 staff, due to ongoing delays in the stgelopment of the Oakajee deepwater port and rail lines. “We are certainly not closing the door on Weld Range, however we must make the right business decisions in order to protect our assets and ensure a realistic future for our organisation,” Sinosteel Midwest Corporation chief operating officer Julian Mizera said in a statement. Sinosteel, one of China’s largest iron ore traders, said the mine would remain closed until uncertainty around the Oakajee stgelopment was resolved.
Oakajee was originally due for completion by 2012 but that had stretched out until 2015, costing the company $100 million a year, Mr Mizera said. “Unfortunately we have now had to draw a line in the sand.”.
As a foundation customer lined up for Oakajee, Gindalbie Metals said the project was fundamental to its plans to stgelop the Karara iron ore project. “For production beyond 16mtpa, Karara requires the stgelopment of Oakajee Port and has signed an MOU (memorandum of understanding) as a foundation customer of the project.
“We continue to support the stgelopment of Oakajee and continue to be engaged in constructive negotiations with all parties involved.”.
Based on Thomson Reuters data, 80% of analysts have a buy on GBG with a total of ten analysts covering the stock, 20% have a hold. This is compared to 90% with buys three months ago, 10% with holds.
Chart: Share price over the year to 27/06/2011 versus ASX200 (XJO)
Stock code: GBG
Charts: Gindalbie Metals Limited
More news: Gindalbie Limited
Biggest Loser: Coalspur (CPL)
Formerly Xenolith Resources, Coalspur is an Australian coal exploration company with its major project being the Vista Coal project in Alberta, Canada. Up 96.28%, it’s hardly surprising that CPL would feature in the top ten losers at some point in its rollercoaster ride. It was a star stock at the end of last year/beginning of 2011, with the stock tripling in value in just over three months to hit $2.30 on Jan 17th. It’s been a choppy ride since, with the share price steadily retreating, although it is still up 5% over the last month despite today’s 9% fall.
Andrew Harrington, analyst, Paterson Securities picked CPL just before it ran in our article “Takeover Targets: 8 Junior Coal Stocks” from October 2010. To ensure the upside survives well beyond some short-lived share price appreciation, Harrington’s favoured junior coal stocks – with CPL at the top of the list – include those better positioned in the capital and infrastructure stakes. “CPL is a thermal coal play with a rare combination of assets close to supporting infrastructure at Alberta, Canada. Based on the positive results denoting export quality coal, the explorer commenced a drilling program on its Vista South Coal Project,” he said.
Based on Thomson Reuters data, 86% of analysts have a buy on CPL, 14% have a hold, 0% have a sell, compared to three months ago when 100% had buys.
Chart: Share price over the year to 23/06/2011 versus ASX200 (XJO)
Stock code: CPL
Charts: Coalspur Mines Limited
More news: Coalspur Mines Limited