Stocks to watch on the Australian stock exchange early on Wednesday:

AKI – AFRICAN IRON LTD – steady at 56 cents

CFE – CAPE LAMBERT RESOURCES LTD – up 0.5 cents at 55.5 cents

African Iron’s major shareholder Cape Lambert Resources has formally accepted a takeover offer from South African miner Exxaro.

API – AUSTRALIAN PHARMACEUTICAL INDUSTRIES LTD – up one cent at 29 cents

Australian Pharmaceutical Industries is due to hold its annual general meeting on Tuesday

BHP – BHP BILLITON LTD – last traded at $36.70

BHP Billiton is due to report on second quarter production.

FMG – FORTESCUE METALS GROUP LTD – up 18 cents at $4.80

Miner Fortescue Metals shipped a record 14.77 million tonnes of iron ore in the December quarter.

BOL – BOOM LOGISTICS LTD – up 3.5 cents at 27 cents

BHP – BHP BILLITON LTD – up 72 cents at $36.70

Boom Logistics Limited says it has been nominated as the successful bidder for a five-year contract to supply crane services to BHP Billiton’s Olympic Dam operations.

OMH – OM HOLDINGS LTD – up 1.5 cents at 42 cents

Manganese miner OM Holdings expects to post a loss of about $12 million for the 2011 calendar year, due to the high Australian dollar and several one-off costs.

OZL – OZ MINERALS LTD – last traded at $10.69

OZ Minerals Ltd (OZL) is due to report on fourth quarter production.

PDN – PALADIN ENERGY LTD – up 18 cents at $1.71

Uranium miner Paladin Energy says it achieved record production in the three months to December and has reaffirmed its full-year production targets.

RIO – RIO TINTO LTD – up 81 cents at $65.70

Rio Tinto has easily beaten its full year iron ore production guidance but copper output was hampered by industrial action.