Sector movers: London Mining leads industrials metals higher

30th Jul 2012 15:32

Industrial metals and mining stocks were on the rise on Monday with iron ore group London Mining surging after announcing a royalty transaction this morning.Shares in London Mining were nearly 18% higher today after saying that asset management firm BlackRock World Mining Trust is to buy a small stake in its Marampa licence in Sierra Leone.Blackrock will acquire a 2% revenue-related royalty from any iron ore sales over the life of the mine, paying $110m in cash. The transaction will be immediately earnings-enhancing and gives Blackrock direct long term commodity price exposure to iron ore whilst avoiding mining sector cost inflation. "This innovative deal is a key part of our long term funding strategy for Marampa's growth. It recognises the value of Marampa's expansion to 9Mtpa and beyond and strengthens London Mining's financial capability to achieve this," said London Mining's Chief Executive Officer Graeme Hossie.Elsewhere, AIM-listed Toledo Mining rose after updating investors on production at its Berong nickel mine. Production in the three months to the end of June was 179,178 wmt at an average grade of 1.63% nickel, the firm said.Top performing sectors so far todayIndustrial Metals & Mining 2,575.62 +4.11%Banks 3,611.10 +2.15%Oil Equipment, Services & Distribution 24,212.88 +2.15%Mining 17,472.06 +1.95%Life Insurance 4,348.36 +1.61%Bottom performing sectors so far todayHousehold Goods & Home Construction 7,044.33 -1.07%Forestry & Paper 5,886.55 -0.82%Food & Drug Retailers 3,976.90 -0.80%Media 4,384.32 -0.75%Insurance (non-life) 1,520.75 -0.36%BC