Contrarian swoops on Arrium stock to up stake further

Contrarian fund manager Allan Gray has seized on the mass sell-off of Arrium stock, snapping up a 5% stake in the steelmaker while most investors were heading for the exits, according to the Australian Financial Review.

Last month, the steel, mining and grinding media group launched a shock $754 million capital raising to shore up its balance sheet as iron ore prices plunged to five-year lows.

Several big investors declined to take up the entitlement offer and sold out of the company, leaving the stock trading well below the 48c a share offer price.

Cliffs says Koolyanobbing mine is profitable

The fifth biggest iron ore exporter from Australian shores has predicted that Rio Tinto, Vale and BHP Billiton will not be able to fund their iron ore expansions out of revenue and will be forced to change their attitude towards export growth, according to the Sydney Morning Herald.

The new chief executive of US miner Cliffs Natural Resources, Lourenco Goncalves, said the market had failed to fully appreciate the big capital expenditure bills the miners would face if they went ahead with their expansion plans.

Alinta confirms TPG Capital looking at sale

Power generator and supplier Alinta Energy has confirmed its private equity owner TPG Capital is examining potential options that could see it sell out of the company, according to the Australian Financial Review.

“Alinta’s owners are exploring future ownership options for the company,” Alinta said on Wednesday.

“This process was always intended as part Alinta’s private equity ownership structure.”

TPG declined to comment.