CAE - Cannindah Resources

[springhill]

Market Cap: $4.9M
Share Price: 8.3c
Shares: 59.7M
Cash: $5.9M

Board of Directors
David Barwick (Chairman)
Barry Kelly
Andrew Gillies

Capital Return to Shareholders
6.5c per share capital return – total $3.9M cash
Shareholders to vote on 25 July 2012
If approved, shares trade ex-capital return on 27 July 2012 with cash payment on 9 August 2012
Planet Metals post Capital Return
•Cash at hand of approx. $2.0M (Represents Cash Backing of 3.3c per PMQ share)
•Same Au-Cu Projects (near term exploration & drilling activity)
•Same Management (proven corporate track record)
•Low admin costs, overheads & low cash burn rate (Forecast $300K - $350K per quarter)

Mount Cannindah Copper-Gold Project
• Large gold bearing porphyry copper system
• Similarities to Newcrest’s Cadia & Ridgeway deposits
• 6km² of Granted Mining Leases & >100km² of EPMs
• Regionally under-explored with priority large-scale targets
•5.5Mt @ 0.92% Cu, 0.34g/t Au, 14.9g/t Ag (Measured, Indicated + Inferred)
Mount Cannindah $6.75M Farm-In Agreement
•Drummond Gold (“DGO”) met its min. expenditure commitments incl. 3,000m drilling. Total spend to date approx. $2M.
•Drummond needs to spend a further approx. $1.25M to earn 51% prior to July 2013
• Additional $3.5M in further 2 years to earn 75%
•Planet retain minimum 25% and is effectively free-carried in the short- medium term

Mount Borium Gold Project
•Third phase of fieldwork underway at Mount Borium
•Rock Chip Samples included assays up to 7.9g/t gold
•Five samples assayed more than 4.9g/t gold
•Drilling planned within 3 Target Zones in Sep/Oct 2012

 

[springhill]

Re: PMQ - Planet Metals

Proposed Activities for the September 2012 Quarter

* Finalise logistics for preparation of a drill program at the Mount Borium gold project

* Provide support to farm-in partner, Drummond Gold as they finalise drill targets over the key regional prospects within the Mount Cannindah copper-gold project

* Complete second phase of field exploration at the Oak River Gold/Uranium Project

* Continue studies into the merits of the Casuarina Salt prospect

Personally, I don't see a catalyst here to spark a SP increase. I would expect it's steady as she goes for PMQ this quarter.

 

[springhill]

Re: PMQ - Planet Metals

Company presentation from PMQ.
http://www.asx.com.au/asxpdf/20120731/pdf/427r0t5fs78yyv.pdf

 

[exberliner1]

Re: PMQ - Planet Metals

I however do see a fairly major catalyst for SP appreciation this quarter and arguably this month as PMQ will be drilling Mount Borium this month and with a tiny mkt cap of $1.8mn at today's close and very few shares in free hands then the the stage is set. Also we are a gold explorer at MB so keep an eye on the gold price as it is more likely to go up than down.

I have set out some research mixed with my own comments below:


The management seems very clued up and has a history of creating shareholder value by being excellent corporate custodians.

This year when just about every other stock I hold has been going cap in hand to shareholders for yet another CR PMQ carried out some inspired corporate activity and actually returned $3.9mn to shareholders in a special payment a few months ago . So no need for cash any time soon as there is still $1.9mn remaining on the balance sheet.

This shrewd operating by the management leaves the company with only 59.7mn shares in issue with the top 20 holding 59% of them as at the Annual Report. Interestingly a state owned Chinese company, Jien Mining, holds 11% of the shares.

What is a huge Chinese company doing holding a stake in in such a tiny junior as PMQ?

So with 59.7mn shares in issue and a SP of 3c we have a mkt cap of $1.8mn which is below our current cash level of $1.9mn. This values PMQ's main projects at minus $100k on an EV basis and gives no allowance at all to PMQ's proven management.

Now a few comments about the projects in the PMQ stable as things stand now:

Mount Cannindah

PMQ has agreed a JV staged farm in with a company called Drummond mining allowing them to earn up to 75% of the project subject to the expenditure of $6.75mn over a 4 year and 9 month period.

After Drummond's initial work on this project they have agreed to move up to a 51% stake by spending a further $1.4mn by the middle of 2013. Following this they will have to spend a further $3.5mn over the 2 years following mid 2013 (compare this to our mt cap of $1.8mn!!).

Further details of this project are on page 6 of the Annual Report issued on 21st September.

A link is here:

http://planetmetals.com.au/_dbase_upl/Annual Report 2012.pdf

To my mind PMQ's largely free carried interest here is worth more than the current mkt cap alone.

Mount Borium

Page 8 onwards in the Annual Report

A few key bullet points as follows:

Rock chip sampling has returned grades of up to 7.8 g/t Au, 56.4 g/t Ag with Cu, Pb and Zn also showing in useful amounts in assays.

The tennement lies in between the existing Einasleigh and Kidston gold mines with the latter just 8Kms from Mount Borium's south border. It is worth noting that gold production at Kidston exceeded 3mn ounces.

The tennement has a road running through it and there is a railway track a few Kms to the North.

PMQ has access to data from previous drilling in the area and has isolated 3 priority targets for further drilling.

Preparation work for drilling is largely complete and PMQ will be drilling during this quarter.

PMQ has recently taken over the Oak Ridge tennement next door to Mount Borium to create one super tennement. Oak Ridge has shown historic prospectivity for Uranium having been drilled by a German explorer in the 1970s. Historic results also , as you would expect from this area, produced gold as well.

Casuarina Salt Project

PMQ has recently taken on this one as well for a small down payment of $65k, early days yet but more details are on page 13 of the Annual Report.

Finally on 10th September we received notice that a private investor has purchased a 5% stake in the company for cash in what looks like a series of on market trades and on 21st September the Chairman David Barwick purchased 805k shares for cash further reducing the freefloat available to the likes of you and me.

Ask yourself this ... is all that really worth an EV of minus $100k and a mkt cap of just $1.8mn?

To my mind a very conservative mkt cap would put us at around $5mn and once drilling starts anything up o $10mn would make sense to me with good results likely to send it higher still.

And for those without a calculator the following handy little table makes a pretty clear point:


Mkt cap ...... Share Price

$5mn ......... 8.4c
$10mn ........ 17c
$15mn ........ 25c

Currently we are $1.8mn mkt cap at 3c.

Surely I am not alone is seeing some seriously overlooked value here or have the lunatics truly taken over the asylum.

Any comments, corrections or feedback gratefully received.

Sorry for the long post.

EB

 

[System]

On December 3rd, 2014, Planet Metals Limited (PMQ) changed its name and ASX code to Cannindah Resources Limited (CAE).

 

[greggles]

Huge share price spike today for CAE after the company reported that recent selected rock chip sampling at the Piccadilly Mining Lease has returned some high-grade gold results.

Share price is currently up a huge 262.1% to 10.5c on volume of over 22 million shares. Yesterday's close was 2.9c. Tiny market cap of $8.5 million.

Here are the details of the rock chip sampling:

 

[barney]

Huge share price spike today for CAE after the company reported that recent selected rock chip sampling at the Piccadilly Mining Lease has returned some high-grade gold results.

I believe the Market has gone mad ? lol.

 

[greggles]

I believe the Market has gone mad ? lol.

We are heading for a huge fall at some point this year. Exactly when and how far is anyone's guess, but it's coming... and it's going to be big! ?

 

[barney]

We are heading for a huge fall at some point this year. Exactly when and how far is anyone's guess, but it's coming... and it's going to be big! ?

Yeah there are some worrying indicators that's for sure.

Advertising enticing young people to enter the Market because it's so easy to make cash.
Cab Drivers etc advising on hot stocks to buy
Irrational day trading on Spec Stocks that have basically nothing much to offer

I hope the Bull keeps kicking for another 2 years, but who knows.

 

[greggles]

Advertising enticing young people to enter the Market because it's so easy to make cash.
Cab Drivers etc advising on hot stocks to buy
Irrational day trading on Spec Stocks that have basically nothing much to offer

Sounds exactly like 2006 and 2007! Every man, his dog, and cab driver had a hot tip about the next small cap miner to find that company maker deposit under the dirt.

 

[greggles]

CAE up a staggering 219.4% to 9.9c today following an announcement in which the company reported that its Mt Cannindah Project has current estimated resources of approximately 90,000 tonnes of copper, 60,000 ounces of gold and over 2.5 million ounces of silver.

Huge share price jump for CAE. Am going through the announcement in a little more detail as it's a bit wordy but it's an interesting read.

 

[Dona Ferentes]

Huge share price spike today for CAE after the company reported that recent selected rock chip sampling at the Piccadilly Mining Lease has returned some high-grade gold results.

and another spike today .. up 119.34% but who's counting

today's Ann: MT CANNINDAH PROJECT REVIEW HIGHLIGHTS POTENTIAL

(if only I could bottle it)

 

[peter2]

Looks like this one has slipped under the ASF radar and mine. Just noticed that I'd traded CAE back in April 2021 and not noticed it since.

Price started it current rally Sept 2021. No posts about the promising copper drill results. Sneaky good.

 

[debtfree]

And on it goes .............

 

[Sean K]

Incredible intercept. No wonder the sp has got a rocket under it.

Another one of those 'why wasn't I watching this one', moments...

 

[Sean K]

That intersection must have been factored in... ?

 

[greggles]

Roaring back to life today, finishing the day at 26c, up 40.54%. No news, but clearly there are some who think it has been sold off too far recently. A speeding ticket might be coming after today's price action.

A JORC upgrade at Mt Cannindah on the cards in early 2022 after some more assay results filter through?

 

[peter2]

Pure speculative position started in CAE. The chart shows a massive price rally late last year on news of good drill results. I'm unaware of the reason for the equally spectacular selloff. Price has been trading sideways for the last two months. Price has been nibbled recently and I notice two HVBBs in there. Worth a spec position as the R:R is acceptable.

 

[peter2]

Who's been a good boy. Here's a little treat for you to enjoy after you've sold some and let the rest go higher.

 

[Sean K]

Is there enough scale to this? It's getting some nice intersections with good grades, but looks to be a pretty small patch of dirt. They need to scissor this from the East to West and go deeper. It looks to be only 80m wide and they've only gone to 120m depth on these holes. I suppose it's a breccia, so that's what it's going to be.

Although previous anns they announced much deeper intersections.

They don't show exactly where these cross sections are in this ann which is annoying. Obviously in the 'northern section' but where?