Junior key to Cleveland-Cliffs' Australian expansion

摘要

Lagging iron ore explorer AusQuest Ltd received a timely kick in the pants last month when US iron ore giant Cleveland-Cliffs Inc announced the company as its new Australian discovery vessel. The announcement was ausplcious as it coincided with Cleveland-Cliffs' proposed 100% takeover of established iron ore company Portman Ltd. If Portman represents Cleveland-Cliffs' consolidation of its presence in Australian iron ore, then AusQuest is its avenue to build on that name in years to come. AusQuest shares leapt 50% to 28.5c on the news that Cleveland-Cliffs' had agreed to taking a 30% stake in the junior. The price surge was a far cry from Portman's $3.40 rise to $21.10 but was the first turnaround AusQuest had experienced since its price began a dire slump in June.