Mantra joins ASX big league
GOLD Coast hotel and resort operator Mantra Group has been elevated into the ranks of Australia’s top 200 stocks after a cracking year of hotel acquisitions and share price surge.
But fellow Gold Coast copper explorer CuDeco was punted from the ASX300 after a rocky year in which it booted its founder and hit major funding hurdles.
Mantra has proved a share market star since listing in June 2014, its stock surging almost 90 per cent from a debut of $1.80. It closed 10 higher to $3.41 yesterday.
The Surfers Paradise group will join the elite “200 club” after a rapid lift in its market valuation to $885 million saw it make the latest quarterly cut.
A stoked Mantra boss Bob East said entry into the coveted club surprised even him.
“We really didn’t expect to squeeze in this year, we thought we’d make it next year,” he said.
“Entry is calculated on size and we had that but we didn’t think we had the liquidity, clearly we have.”
A further 11 hotels were added to the group’s network in FY2015 and a further five in the first two months of 2016 – including the $29.5 million acquisition of the four remaining Outrigger properties in Australia.
Another nine hotels are slated to join the group in the next six months with more in the pipeline.
Mr East yesterday was meeting with investors in Singapore to discuss the potential acquisition of new ho- tels in the island city-state and in Thailand.
“The inclusion in the ASX200 is great recognition for our team and places us in a wonderful position as we are now recognised within this much sought-after index,” Mr East said.
“It shows our shareholders have faith in our business and our strategic growth plans are on track.
“It puts us on the radar of the major institutions and offshore investors looking to invest in Australia’s hotel and resort industry, taking our business to a whole new level, but our focus remains on putting on exceptional hotels and ensuring our guests are happier than ever.”
The news was less happy for CuDeco which was removed from the ASX300.
The struggling explorer had a tumultuous year, punting its maverick founder Wayne McCrae after the failure to find the funds to complete its Rocklands processing plant.
Its three major Chinese shareholders and new management have fared little better – the company’s shares have been suspended from trade since August 6 as it battles to raise cash.
Once briefly valued at $1 billion, with its shares trading at $10, CuDeco shares have slumped to $1.10 and its market capitalisation to $307 million.
Interim chairman David Taylor said: “CuDeco’s board remains focused in finalising its fundraising plans and will be in a position to provide the market with an update by midSeptember.
“CuDeco’s principal contractor, China’s Sinosteel Equipment & Engineering, is continuing to work with CuDeco’s Rocklands team in completing the electrical installation, with commissioning of the plant to follow shortly after.
“The board remains confident once its fundraising plans are announced and the process plant construction completed, the present undervaluing by the market of its flagship Rocklands Project will be corrected,” Mr Taylor said.
We really didn’t expect to squeeze in this year, we thought we’d make it next year
BOB EAST