BUZZ-Drax: top of FTSE 250 after H1 reassures

** Beaten-down power station Drax top of FTSE 250 & 2nd-top riser on Stoxx 600 after H1 results

** Reports an 18% rise in H1 core earnings to 120 mln pounds thanks to higher production

** Half-year divi payment of 5.1p/share, up from 4.7p last year

** Reduction in net debt to £40 mln vs £99 mln end-December

** Co has started a strategic review of its business after the government indicated changes to renewable energy subsidies

** Drax, which is generating a growing amount of energy from biomass pellets, slid 28% OTD early July when UK finmin George Osborne said renewable energy suppliers & their customers would no longer be exempt from a climate change tax

** Drax 3rd-worst performer YTD on FTSE 250 (behind Lonmin & AO World ), down 45%

** Drax is 9th-most borrowed FTSE 250 stock, with 8.5% of its shares on loan, according to Markit (NasdaqGS: MRKT - news) data

** Alastair Mundy, manager of Investec UK Special Situations Fund, bought more Drax shares the day after co lost the tax exemption -- partly on basis decision could be reversed (Osborne been forced to retreat on proposed taxes before) (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)