CAPE LAMBERT (CFE) 50% capital return

[tommy]

WTF, no brainer guyz! (I now hold)

2 October 2008

The Company Announcements Office

ASX Limited
Via E Lodgement

A$100 Million Return of Capital and Unfranked Dividend

Australian iron ore company Cape Lambert Iron Ore Limited (“Cape Lambert” or the
“Company”) (ASX: CFE, AIM: CLIO) released the Company’s audited accounts for the year
ending 30 June 2008 on 30 September 2008.

Following the release of these audited accounts, the Board has been able to determine the
timetable for the equal reduction of capital (to be made via a cash distribution to
Shareholders) and payment of an unfranked dividend, which was approved by Shareholders
on 28 July 2008.

In accordance with the ASX Listing Rules, the timetable applicable for the return of capital
and dividend is outlined below:

Event Date
Announcement of Dividend and Return of Capital 2 October 2008
Effective Date 14 October 2008
Trading in Shares starts on an “ex return of capital
basis” and “ex dividend basis” 14 October 2008
Record Date 20 October 2008
Payment Date and Dispatch Date 24 October 2008

As outlined above, the record date for these payments will be 20 October 2008, which the
Board believes will provide Option holders wishing to take part in the return of capital and
receive the unfranked dividend sufficient time to convert their options.

The capital return cash distribution and dividend payment will be made to Shareholders on
24 October 2008. The Company via its share registry, Computershare Investor Services
Limited, has sent information requesting tax file number notification to all registered
Shareholders and we ask that these documents are completed and returned as soon as
practically possible.

The Board has determined that the total payment (capital reduction cash distribution and
dividend payment) to be made to Shareholders comprises approximately:

• Return of Capital 31.25%
• Unfranked dividend 68.75%

It is determined that the total payment (as at 2 October 2008) is approximately A$0.227 per
share, however, the final payment per share will not be known until the record date.
Cape Lambert Iron Ore Limited 2 October 2008

Executive Chairman, Tony Sage commented “The Board is pleased to have delivered such a
significant cash return to Shareholders so soon after 80% of the funds were received from
MCC”. He further added “In total, the Company has returned A$100 million to Shareholders”.
The Board is committed to using the successful completion of the MCC sale to build a solid
foundation for the Company’s future growth, which it believes will ensure Shareholders
continue to receive a significant return on their investment.

Yours faithfully
Cape Lambert Iron Ore Limited
Tony Sage
Executive Chairman

FOR MORE INFORMATION PLEASE CONTACT:
Cape Lambert Iron Ore Limited:
Tony Sage +61 (0)8 9380 9555
Australian Enquiries:
Professional Public Relations
David Tasker +61 (0)8 9388 0944/ +61 433 112 936
UK Enquiries:

Nominated Adviser:
Grant Thornton UK LLP
Fiona Owen +44 (0)20 7383 5100
AIM Broker:
Collins Stewart Europe Limited
Adrian Hadden +44 (0)20 7523 8353
Oliver Quarmby +44 (0) 20 7523 8354
Conduit PR:

Jos Simson +44 (0)20 7429 6603/+44 (0)7899 870 450
Jane Stacey +44 (0)20 7429 6606
Website: www.capelam.com.au

[Grand Uber]

Whats the chance of your share value dropping by 50% the day it goes ex dividend?

[shasta]

Whats the chance of your share value dropping by 50% the day it goes ex dividend?

With cash being the most precious of resources in the market at the moment, is a short term SP spruik the best thing to do?

Surely keeping the money (& getting some interest on it) & fast tracking other projects is far more value enhancing for shareholders...

Kind of like paying a dividend, then going back to shareholders later on for more cash!

[tommy]

Hi lads,

The point is not to hold long term but to trade this stock. Last closing price was 46c so 22c capital return is more than 40% of the current stock price.

It may fall after the ex date but until then, provided that DOW meltdown does not occur due to stupid yanks in congress failing to approve the bailout bill, this is a relatively low-risk, high return punt.

I know the spec sector is absolutely f@cked in terms of sentiment at the moment and yeah, I am 90% cash still but CFE seems to be a no brainer for me. If the bailout plan is passed, the likes of BNB might be worth a punt too...

But in the meantime, lets enjoy the All Ords blood bath hehehe

DOW down 3% so far, but come on guys, to make congress panic and approve the bill, they should have tanked 10%.

Politicians are not economists, but merely greedy smooth-talking representatives of their constituents. Politicians are only as dumb as the mass they represent. If the DOW nosedives more, the bill will be passed out of fear... sad but ironically this is the only hope we have.

[seadog]

Hi Tommy, thought you might find this interesting from "Money Morning" today-

Buy $3 in Cash for $1

And on that note, there's one more to look at. Cape Lambert Iron (ASX:CFE).

We've only looked at this briefly, so we could be wrong. You're welcome to inform us if you know better at moneymorning@moneymorning.com.au.

But after selling its major iron project to China Metallurgical, the company reckons it is sitting on $400 million in cash. It can invest that in new iron projects, or it can develop anything other current prospects.

It's trading at a market cap of $116 million today. According to the last annual report, it has $5 million in debt.

That means $395 million in cash is selling for $116 million. At face value, you can buy $3 for $1.

Cape Lambert jumped 30% yesterday. A big shareholder is trying to replace the board. So the company is shaking things up. It's organising a $100 million payout to shareholders too. Even those don't seem to warrant such a massive discount to this kind of liquidity though.

What we like about it most? Basically, the stock has its finger on the investment trigger. Right now, when mining projects are selling cheaper than they have in 4 years, it has a mountain of cash to buy them with.

[Grand Uber]

Is anyone else considering buying this on the day it goes ex-dividend? im guessing its going to get oversold to hell, could be a quick bounce back and its undervalued as hell anyway

[JBmurc]

About Cape Lambert Iron Ore Limited
During 2008, Cape Lambert sold its Pilbara namesake magnetite project to China
Metallurgical Group Corporation (“MCC”) and has received AUD$320 million of the
AUD$400 million sale price. The final cash payment of AUD$80 million is to be paid by
MCC on the grant of a mining lease and related construction approvals in respect of
the project.
Since acquiring the magnetite project and prior to the sale, Cape Lambert completed
182 RC holes for a total advance of 55,671 meters and 26 diamond core holes
for a total advance of 5,794 meters.
The magnetite project is located approximately 10-15km from the port of Cape
Lambert and currently has a 1.56 billion tonne JORC compliant magnetite iron ore
mineral resource defined over a strike length of approximately 5km.
As at 31 March 2009 Cape Lambert had approximately AUD$126.9 million in cash

CFE-Mrktcap-147mill

pretty astute management.

lastest news-Lambert”) (ASX: CFE) is pleased to advise that it has signed binding formal agreements to
acquire the assets of listed resources company CopperCo Limited (“CopperCo”) (ASX:
CUO).
The CopperCo assets include the Lady Annie copper project in northern Queensland. Mining
at the project has been suspended and Cape Lambert intends to conduct an exploration
program in relation to that project and the associated regional tenements also to be
acquired.
The CopperCo assets also include a 25% stake in the Queensland based Lady Loretta
copper project, a 100% interest in the Sappes gold project in Greece and shareholdings in
various listed resources companies, including Platmin Limited (TSX/AIM: PPN).
“The CopperCo asset portfolio is attractive and extensive and current market conditions now
provide an opportunity to unlock value for Cape Lambert and its shareholders through this
acquisition,” Cape Lambert Chairman Mr Tony Sage said.
As previously announced, on 6 February 2009, Cape Lambert acquired the secured debt
owed by CopperCo and its subsidiaries. This debt will be repaid at completion of the asset
acquisition in the amount of approximately A$78 million. In addition, Cape Lambert has
provided working capital facilities to CopperCo’s receivers, which will be repaid at
completion of the asset acquisition in the amount of approximately $30 million.
Under the terms of the asset acquisition agreements, after the repayment of secured debt
and receivers’ working capital facilities, CFE has agreed to pay an additional approximately
A$27 million on completion of the asset acquisition.

[Dr_Who]

How much cash?

Saves me from going through their accounts.

Cheers

[JBmurc]

looks like CUO major prob was funding think they had a flooding issue at- Lady annie-I'm sure the smart CFE managerment will ture round CUO assets to make us shareholders a nice profit ....


PRINCIPAL ACTIVITY
Copperco Limited (CUO, formerly Avon Resources Ltd ) is a copper mining and
exploration company with the projects located within the Mt. Isa region of
Queensland. As at May 2008 the company was implementing a merger with Mineral
Securities Limited.

LADY ANNIE PROJECT: The project located is located 137 km north of Mount Isa. It
is currently producing LME Grade A copper cathode at 19,000tpa, targeting an
increase to 25,000tpa in 2008 and 30,000 tpa by mid 2009. As at March 2008 total
resource was 40Mt @ 0.9% Cu for 358,700t Cu.

MOUNT KELLY PROJECT: The Mount Kelly project, located 110 km north of Mount Isa.
It comprises three prospects: Mount Clarke, Flying Horse and the Mount Kelly
Workings. As at March 2008 total resource was 14.1Mt @ 0.7% Cu for 106,400t Cu.

BUCKLEY RIVER PROJECT: The project is located 70km north of the Mount Isa and is
prospective for copper. An Indicated and Inferred Mineral Resource Estimate of
3.9 Mt @ 1.1% Cu for 43,200t Cu has been delineated at the Anthill Prospect.
Recent drilling returned 13m @ 3.45% Cu from 41m.

BUCKLEY RIVER PROJECT: The project is located approximately 40km south of the
Mount Kelly project and is prospective for copper. Two main prospect areas have
been outlined: the Anthill and the Johnson Creek prospects.

MINERAL SECURITIES MERGER: On 29 January 2008, the Company announced a proposed
merger with Mineral Securities Limited. Mineral Securities Limited (MXX,
formerly Minsec) is a Resource Investment House that makes early stage equity
investments in resource companies and projects."


Also on CFE cash balance of HC-the quarterly on the 30th april shows cash of $127m plus the convertible notes they will get.
Plus the $72.7m from the secured debt they bought plus the $33.8m bank guarantees .
Plus the final cash payment from China Metallurgical Group for the namesake Pilbara magnetite sale 70m???

[corporateraider]

As Tommy said right back at the start of this thread this one remains a no brainer. Cash on hand or to be received (80m from the balance of the sale ot the Cape Lambert tenement) is in excess of capitalisation. And to this add the assets of CUO. And that was a company that traded profitably initially till debt overcame it. Note that it had a capitalisation of 1000 million at one stage last year and CFE have bought it for about a tenth of that. Is it little wonder that since that deal we have started to see a significant rerating for CFE.
This looks like an interesting ride

Disc: Hold a few