Lansdowne Partners Acquires Central Asia Metals (LON: CAML) Position ~ market folly

Tuesday, October 5, 2010

Lansdowne Partners Acquires Central Asia Metals (LON: CAML) Position

Steven Heinz and Paul Ruddock's hedge fund Lansdowne Partners have recently taken a 17.94% stake in Central Asia Metals (LON: CAML). Due to a regulatory filing in the UK, it shows that Lansdowne bought their shares on the 29th of September when Central Asia Metals listed in London and placed £38.1m shares. The company plans to use the money raised to build a SX-EW plant at Kounrad that will have the capability to produce 10,000 tonnes of copper cathode a year.

It's unclear as to whether the hedge fund acquired these shares in the IPO or on the open market, but given Lansdowne's prominence, we'd guess the former. For more coverage of this UK hedge fund, we recently detailed a portfolio update on Lansdowne.

According to Reuters, the "newly listed company is looking to sign the deals for when it ramps up copper production from its 60-percent owned Kounrad project in Kazakhstan at the end of next year, but is wary of setting prices too early."

Central Asia Metals plc is an AIM-listed UK incorporated company based in London. Its main countries of operation are Kazakhstan and Mongolia. CAML is a precious and base metals mining, exploration and development company with majority stakes in copper, gold and molybdenum projects throughout Central Asia.

In terms of other recent hedge fund activity in UK markets, we detailed that Harbinger Capital sold some of Inmarsat.

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