CAPITAL MARKETS

More miners move up the ASX 200 ranks

The latest S&P Dow Jones Indices ASX rebalance was another successful one for miners

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Whitehaven Coal was added to the S&P/ASX 100 on Friday, after what has been a transformational 12 months for the company.

The company recently paid US$200 million to acquire 75% of Rio Tinto's Winchester South metallurgical coal project in the Bowen Basin, and will pick up the balance this month.

A strong December half performance saw Whitehaven pay A$129 million in interim dividends, representing 50% of net profit after tax.

Its shares are up by 120% year-on-year and 26.7% since the start of this year. Whitehaven now has a market capitalisation of $5.8 billion.

Battery metals players Clean TeQ Holdings and Kidman Resources were added to the S&P/ASX All Australian 200 index.

Clean TeQ briefly became a $1 billion company late last year and while its shares have declined by nearly 30% this year, the stock is still up by 74% since the same time in 2017.

The definitive feasibility study for the Sunrise nickel-cobalt project in New South Wales is due to be released this month.

Early project works are already underway, ahead of a final investment decision.

Meanwhile, a DFS for Kidman Resources' 50%-owned Mt Holland lithium project in Western Australia, a joint venture with Chilean major SQM, is due in the second half of the year.

The company recently signed an offtake deal with Tesla and is aiming for first lithium concentrate production in the back half of next year, followed by hydroxide/carbonate production from a planned refinery in early 2021.

Kidman shares have soared by 255% over the past year and the company is now capitalised at $859 million.

No miners were removed from indices in the June quarter rebalance.

The changes take effect at the open of trading next Monday.

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