01/10/2010 - 14:57

Cape Lambert posts $72.2m 2010 profit

01/10/2010 - 14:57

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Tony Sage-led Cape Lambert Resources has recorded a $72.2 million net profit after tax for the 2010 financial year, largely as a result of the sale of the Lady Annie Copper Project in Queensland.

Cape Lambert posts $72.2m 2010 profit

Tony Sage-led Cape Lambert Resources has recorded a $72.2 million net profit after tax for the 2010 financial year, largely as a result of the sale of the Lady Annie Copper Project in Queensland.

The result was down from the $299 million NPAT recorded in the 2009 financial year, but the bulk of this was attributed to the sale of the company's iron ore project to Metallurgical Corporation of China for $400 million.

Cape Lambert sold Lady Annie for $130 million during the 2010 financial year, realising a profit of $85.2 million.

In June the company declared a $44 million fully franked dividend which was paid in July.

"As worldwide demand for resources grows and prices rise, particularly for iron ore, our strategy is simple - to secure prime exposure to iron ore, gold, base metals and phosphate assets," said Mr Sages.

"This has necessitated a geographically diverse portfolio of assets in Australia, Greece, Africa and South America," he said.

"We add value through hands on approach to management, exploration and evaluation that enables us to deliver a return to our Shareholders when we divest of these assets," he added.

 

See company statement below:

Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) ("Cape Lambert" or the "Company") has exceeded its previous targets and taken large steps in quickly developing and expanding its asset base, recording a Net Profit After Tax (NPAT) of for the year ended 30 June 2010 of $72,248,076.

In 2009 Cape Lambert Recorded an NPAT of $229,009,330 million, however the bulk of this was attributed to the sale of the Cape Lambert Iron Ore Project in Western Australia to Chinese group Metallurgical Corporation of China Limited ("MCC") for a total consideration of $400 million, $320 million of which was received in the last financial year.

The 2010 NPAT was largely as a result of the successful sale of the Lady Annie Copper Project in Queensland for $130 million, realising a profit to the Company of $85.2 million.

In July 2010, the Company paid the $44 million fully franked dividend it had declared in June 2010. The payment of the special dividend brings the total returned to shareholders in the past two years to approximately A$144M (or ~ A$0.30 per share).

"As worldwide demand for resources grows and prices rise, particularly for iron ore, our strategy is simple - to secure prime exposure to iron ore, gold, base metals and phosphate assets. This has necessitated a geographically diverse portfolio of assets in Australia, Greece, Africa and South America," said Cape Lambert Chairman, Mr Tony Sage.

"We add value through hands on approach to management, exploration and evaluation that enables us to deliver a return to our Shareholders when we divest of these assets," he added.

As part of its expansion strategy, the major acquisitions and transactions completed by Cape
Lambert during the year include:
- Scrip takeover bid for Corvette Resources Limited ("Corvette"), which subsequently merged
with Tianshan Goldfields Limited in February 2010. Cape Lambert holds 32.3% in the merged entity, which retained the name Corvette Resources Limited (ASX: CVX);
- Acquiring 100% ownership of the Marampa Iron Ore Project in Sierra Leone, West Africa;
- Conversion of its $2 million note and exercise of its options in DMC Mining Limited ("DMC")
early in the financial year. Following a successful takeover bid launched in March 2010, CFE
acquired control over DMC by 30 June 2010 and completed its compulsory acquisition
process on 20 August 2010;
- Gaining an initial stake of 39.25% in NiPlats Australia Limited (reduced post 30 June 2010 to 8.27% following dilution from capital raisings and sale of shares on market);
- Converting a $28 million note into equity in Pinnacle Group Assets Limited ("Pinnacle") and
subsequently acquiring an additional 15 million existing ordinary shares to increase its
interest in Pinnacle to 37.2%;
- Converting its $2.3 million note in Cauldron Energy Limited ("Cauldron") into an 18.6%
interest in Cauldron;
- Exercising 10 million, 10 cent options in Latin Resources Limited ("Latin") to it a 15% interest in Latin, which is an iron ore exploration company focused in Peru. Post 30 June 2010, a further 10 million Latin 10 cent options were exercised and Latin repaid a $2.2 million
convertible note. Cape Lambert holds a 17% interest in Latin;
- Completing the scrip acquisition of unlisted company Mojo Minerals Limited; and
- Advancing a total of $5.9 million in convertible notes to junior explorers Cauldron Energy
Limited ($1.5 million), Victory West Moly Limited ($2 million) and Africa Uranium Limited ($2.4 million).

During the year, Cape Lambert also sold the following non-core assets:
- Shareholdings in Herencia Resources plc, Charaat Gold Holdings Ltd, and Platmin Limited which realised $28 million; and
- Shareholdings in Tianshan Goldfields Limited (now Corvette Resources Limited) and Buka Gold Limited (now Fe Limited) realising approximately $2.4 million.
Since 30 June 2010, Cape Lambert has continued to focus on its expansion program and have completed the following transactions:
- On 16 July 2010, Cape Lambert signed a binding term sheet with African Minerals Limited (AIM: AML) formalising ownership and access rights to the Marampa rail and Pepel Port in Sierra Leone, where Cape Lambert will have an initial minimum transport capacity of 2Mtpa and will earn a 33% equity interest by contributing US$45million towards the rail and port
refurbishment costs.
- In early August 2010, Cape Lambert successfully completed the acquisition of the Leichhardt Copper Project located in world class Mt Isa base metals province of North West Queensland. Payment on completion amounted to $6.8 million which was in addition to a deposit of $1 million paid prior to 30 June 2010. The Leichhardt process plant at Mt Cuthbert - a heap leach, solvent extraction and electrowinning facility has an installed production
capacity of 9,000 tpa of copper cathode; and - In early August 2010, Cape Lambert formed a strategic alliance with Chameleon Mining NL. This alliance exposes Cape Lambert Shareholders to a potential positive outcome from a pending Federal Court decision in
relation to Murchison Metals Ltd in respect of the ownership of the producing Jack Hills iron ore asset.

"The outlook for the next financial year is strong and we are looking forward to building on the successes achieved in 2010 in line with our long term growth strategy," Mr Sage said.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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