11/03/2011 - 09:31

Cape Lambert lodges loss after acquisiti

11/03/2011 - 09:31

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Cape Lambert Resources has slipped to a $17.5 million loss in the half-year to December 31, after a busy period of asset acquisitions.

Cape Lambert lodges loss after acquisiti

Cape Lambert Resources has slipped to a $17.5 million loss in the half-year to December 31, after a busy period of asset acquisitions.

In the previous half year, Cape Lambert recorded a $144,000 profit on revenue of $8.7 million.

Cape Lambert's revenue was $1.9 million in the half year to December 31, 2010

Over the half, Cape Lambert entered into a strategic alliance with Chameleon Mining, acquired the Leichart Copper project in Queensland and paid $32.4 million in a takeover of DMC Mining.

"The board intends to continue to follow its strategy of acquiring and investing in undervalued mineral assets and companies, and adding value to these assets through a hands on approach to management, exploration and evaluation to enable the assets to be monetised at a multiple," the company said in its results statement.

"As assets are monetised, the board intends to follow a policy of distributing surplus cash to shareholders."

Subsequent to December 31, Cape Lambert completed the sale of DMC to African Iron for $47 million cash and 120 million African Iron shares.

The company also increased its interest in Pinnacle Group Assets, purchasing a further 12 million shares for $13 million, increasing its interest in Pinnacle to 46.1 per cent.

At 9:26AM (WST) Cape Lambert stocks had slipped 1.8 per cent, to trade at $0.54.

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