traders corner - the australian

Trader’s Corner

It’s the big question coming out of Perth financial circles - is Andrew "Twiggy" Forrest increasing his stake in Cazaly Resources? Someone was doing some big market buying of the iron ore hopeful late yesterday, placing an order for 70,000 shares at $1.63. Twiggy's company Fortescue Metals, another Pilbara iron ore hopeful, has a 7 per cent stake in Cazaly but it could be the precursor to something bigger. The speculation is that Fortescue will probably make a play for Cazaly pending a decision on Shovelanna by the West Australian Government. For those unfamiliar with the Shovelanna story, it involves the biggest names in the Australian iron ore world and a small patch of lucrative land in the Pilbara worth hundreds of millions. Shovelanna was once owned by Rio Tinto but it failed to renew its exploration licence over the ground, blaming a failed courier deliver. Cazaly snapped it up, Rio complained and now the West Australian Government has to determine who gets what, with a decision expected soon. Cazaly closed up 7c to $1.63.
Kevin Andrusiak