News

August 20, 2008

Cambrian Mining Shares Riding High, As Mark Burridge’s Medicine Reacts To Good Effect With A Strong Coal Price

By Alastair Ford

What is it with Cambrian Mining? While everyone else is rolling about in the gutter moaning about a lack of liquidity, a dearth of credit and a lack of money in any form, Cambrian's share price is riding high at just over 230.5p. The significance of that price shouldn't be underestimated. It means the company has clawed back all the ground it lost when things started to go sour back in 2005. And lately they've been even higher. After some extremely aggressive buying back in June, on the back of a strong coal price and as the company was drawing former spin-out Coal International back into the fold, the shares hit an all time high of just over 330p.

You can look at that two ways. On one way of thinking, the shares have lost around of a third of their value since June. That wouldn’t make Cambrian stand out in any crowd of junior resource companies, but it’s still painful for the small minority who bought at that peak 330p level. The mining sector as a whole is down massively, as metals prices weaken and the economic outlook around the world turns gloomier. On the other way of thinking, though, the transformation of Cambrian has been little...