CBH - CBH Resources
- Thread starter brerwallabi
- Start date
-
- Tags
- cbh cbh resources
Realist
Billie Jean is not my lover
- Joined
- 1 June 2006
- Posts
- 2,057
- Reactions
- 3
Wish I'd bought more in the first place... 
- Joined
- 30 March 2005
- Posts
- 835
- Reactions
- 2
I've bought and sold on this one between the mid 30c and high 40c marks. I am holding now. If there is any short term downturn I think I'll be doing a major topup. roll on $2.40!!!!
- Joined
- 27 April 2006
- Posts
- 1,109
- Reactions
- 4
yeah now that many people know the potential of this one i cant see it falling to hard before been picked up very quickly. im tempted to sell out of some other stocks to top up on this one before price really gets away from me.
if it drops to mid 50's now watch the amount of support jump in and top up. if hartleys valued this at 2.49 then watch out next year we could see some really serious action in next 6 months.
if it drops to mid 50's now watch the amount of support jump in and top up. if hartleys valued this at 2.49 then watch out next year we could see some really serious action in next 6 months.
Out Too Soon
My real name is King Julian ;)
- Joined
- 26 March 2006
- Posts
- 664
- Reactions
- 1
To answer Grizs question "sell in May, go away, buy in November" that's quoting Alan Kohler & if you look at the past it holds true that avg stocks all fall around May but in November we can expect more positive results, of course this is very general & you never know when the rug is about to be pulled out from under our feet.
Hey I still own croesus shares, anyone want some???
Hey I still own croesus shares, anyone want some???
I think this stock is a smoker, and i've been holding it since the mine collapse when it dropped to 16.5c, but i'd take the $2.40 valuation with a grain of salt. To get that valuation they're assuming zinc prices of $1.50/lb in perpetuity. Having said that, this think is trading on a P/E of around 4x based solely on earnings from Endeavour, not placing any value on Sulpher Springs or Broken Hill. If zinc consolidates around $1.80/lb i'd be banking on around 80c by Christmas. Just my 
.
.
- Joined
- 27 April 2006
- Posts
- 1,109
- Reactions
- 4
it depends on what spot price of zinc does. 1.50 is 3300 dollars per tonne, zinc has averaged almost that this year, i think forecasts for the zinc spot price have been conservative when we compare what happened with copper and nickel.
copper supply has now meet demand and price has still stayed very high compared to historical prices, IMO i think the zinc price will be pushed up quite high on fundamentals and could average out at a higher level similar to copper.
there is 125 000 tonnes left in LME and zinc spot is almost touching 1.80
what would an earnings estimate be for CBH if zinc averaged 1.80 next year (conservative IMO).
following 2008 zinc price will soften a little as supply meets demand, however i think spot price will remain strong even as zinc inventories begin to build up again in this period. obviously by 2008 global demand will have increased also.
this mornings action saw price soften a little but i think that was to be expected after big push through previous highs. like i posted earlier any weakness in price should see a large increase in buying support.
this is exactly what happened price dropped to 59 cents and buyers quickly appeared, showing a little more support now. we want to some some strong support from 60 cents plus to begin to form a new base of support.
im wondering when these ann are due?? BFS for SS? and 100% production ann? i want to see the numbers for ss.
copper supply has now meet demand and price has still stayed very high compared to historical prices, IMO i think the zinc price will be pushed up quite high on fundamentals and could average out at a higher level similar to copper.
there is 125 000 tonnes left in LME and zinc spot is almost touching 1.80
what would an earnings estimate be for CBH if zinc averaged 1.80 next year (conservative IMO).
following 2008 zinc price will soften a little as supply meets demand, however i think spot price will remain strong even as zinc inventories begin to build up again in this period. obviously by 2008 global demand will have increased also.
this mornings action saw price soften a little but i think that was to be expected after big push through previous highs. like i posted earlier any weakness in price should see a large increase in buying support.
this is exactly what happened price dropped to 59 cents and buyers quickly appeared, showing a little more support now. we want to some some strong support from 60 cents plus to begin to form a new base of support.
im wondering when these ann are due?? BFS for SS? and 100% production ann? i want to see the numbers for ss.
Hi all
This should be of interest.
INTERVIEW:Australia CBH Says Zinc Proj Go-Ahead Imminent
577 words
19 October 2006
17:35
Dow Jones Commodities Service
English
Copyright 2006, Comtex News Network. All Rights Reserved.
SYDNEY, Oct 19, 2006 (DJCS via Comtex) --
By James Attwood
Of DOW JONES NEWSWIRES
Australia's CBH Resources Ltd. (CBH.AU) said Thursday it has completed a draft feasibility study into an estimated US$100 million zinc-copper project, with a formal go-ahead decision imminent.
"From our perspective, it's going to happen," said CBH Chairman James Wall.
The Sulphur Springs project in Western Australia's Pilbara region is expected to produce at least 75,000 tons a year of zinc concentrates and 65,000 tons of copper concentrates from 2008.
The company has already placed an around A$9 million order for sag and ball mills with Finnish supplier Outokumpu Oyj, considered long lead time items in the tight global mining materials market.
"We're doing that because the project economics, without finalizing the feasibility study process, looked very attractive," Wall said.
He said CBH continues to look at financing options including debt raising and arrangements with off-takers, such as the company's 24.8% shareholder Toho Zinc Co. Ltd. (5707.TO) of Japan.
But Wall said debt financing is unlikely to entail hedging given the company's bullish outlook for metal prices.
London Metal Exchange traded lead prices have surged nearly 70% since late June to a series of all-time highs, while zinc, used to galvanize steel, has risen by a third to a record US$4,020 a ton this week.
"I think zinc is going to go a lot higher than US$4,000," he said, describing lead at around US$1,500 currently as "a beautiful market."
Wall's confidence is driven by low and still shrinking global stock levels as years of exploration underinvestment and structural expansion barriers constrain the supply side's ability to react to still strong China-led global demand.
Meanwhile production at the company's flagship Endeavour zinc and lead mine in central New South Wales state is back on track after a lengthy recovery from a "self mining" incident last year, he said.
"We had a good month in September of about 10,400 tons zinc concentrates and about half that lead and this month looks good as well," he said. The zinc output rate compares with traditional levels of 11,600 tons a month.
CBH expects to make a development decision next year on its Broken Hill brownfield underground project in NSW.
In total, the company is looking to reach 300,000 tons annual production to become Australia's third largest zinc miner after Zinifex Ltd. and Xstrata PLC.
Wall said Toho's nearly 25% stake in CBH Resources affords the company some protection from the recent flurry of merger and acquisition activity in the mining industry and broader Australian equities market.
He said other mid-sized zinc and lead producers in Australia, Kagara Zinc Ltd and Perilya Ltd, are similarly shielded by Korea Zinc Co Ltd's presence on their share register.
"To some extent, if someone wants to takes us over they have to do a deal with those companies, which isn't easy."
Neither is a merger likely between CBH and either Kagara or Perilya, he said.
"Although the Japanese and Koreans like each other they don't like to get into bed together."
This should be of interest.
INTERVIEW:Australia CBH Says Zinc Proj Go-Ahead Imminent
577 words
19 October 2006
17:35
Dow Jones Commodities Service
English
Copyright 2006, Comtex News Network. All Rights Reserved.
SYDNEY, Oct 19, 2006 (DJCS via Comtex) --
By James Attwood
Of DOW JONES NEWSWIRES
Australia's CBH Resources Ltd. (CBH.AU) said Thursday it has completed a draft feasibility study into an estimated US$100 million zinc-copper project, with a formal go-ahead decision imminent.
"From our perspective, it's going to happen," said CBH Chairman James Wall.
The Sulphur Springs project in Western Australia's Pilbara region is expected to produce at least 75,000 tons a year of zinc concentrates and 65,000 tons of copper concentrates from 2008.
The company has already placed an around A$9 million order for sag and ball mills with Finnish supplier Outokumpu Oyj, considered long lead time items in the tight global mining materials market.
"We're doing that because the project economics, without finalizing the feasibility study process, looked very attractive," Wall said.
He said CBH continues to look at financing options including debt raising and arrangements with off-takers, such as the company's 24.8% shareholder Toho Zinc Co. Ltd. (5707.TO) of Japan.
But Wall said debt financing is unlikely to entail hedging given the company's bullish outlook for metal prices.
London Metal Exchange traded lead prices have surged nearly 70% since late June to a series of all-time highs, while zinc, used to galvanize steel, has risen by a third to a record US$4,020 a ton this week.
"I think zinc is going to go a lot higher than US$4,000," he said, describing lead at around US$1,500 currently as "a beautiful market."
Wall's confidence is driven by low and still shrinking global stock levels as years of exploration underinvestment and structural expansion barriers constrain the supply side's ability to react to still strong China-led global demand.
Meanwhile production at the company's flagship Endeavour zinc and lead mine in central New South Wales state is back on track after a lengthy recovery from a "self mining" incident last year, he said.
"We had a good month in September of about 10,400 tons zinc concentrates and about half that lead and this month looks good as well," he said. The zinc output rate compares with traditional levels of 11,600 tons a month.
CBH expects to make a development decision next year on its Broken Hill brownfield underground project in NSW.
In total, the company is looking to reach 300,000 tons annual production to become Australia's third largest zinc miner after Zinifex Ltd. and Xstrata PLC.
Wall said Toho's nearly 25% stake in CBH Resources affords the company some protection from the recent flurry of merger and acquisition activity in the mining industry and broader Australian equities market.
He said other mid-sized zinc and lead producers in Australia, Kagara Zinc Ltd and Perilya Ltd, are similarly shielded by Korea Zinc Co Ltd's presence on their share register.
"To some extent, if someone wants to takes us over they have to do a deal with those companies, which isn't easy."
Neither is a merger likely between CBH and either Kagara or Perilya, he said.
"Although the Japanese and Koreans like each other they don't like to get into bed together."
From FW Holst stock brokers last report.
Holst .........although there maybe a very short term pull back in the share price of CBH after such a steep rise, we believe CBH has scope for further share price appreciation ( our valuation 81 cents ).
Could exceed this valuation in the next few weeks
Royce
Holst .........although there maybe a very short term pull back in the share price of CBH after such a steep rise, we believe CBH has scope for further share price appreciation ( our valuation 81 cents ).
Could exceed this valuation in the next few weeks
Royce
Sean K
Moderator
- Joined
- 21 April 2006
- Posts
- 22,287
- Reactions
- 11,544
Royce said:
That would make a very steep rise Royce. Perhaps too steep. Might be scope for it to pull back a bit short term, unless they come out with a great ann about Endeavour being up and running to full capacity. Or has that been announced? I can't see any recent anns regarding that. Another possibility is that people have been buying this waiting for the news and when it is announced, they dump it. Buy the rumour, sell the fact?
Attachments
kennas said:Another possibility is that people have been buying this waiting for the news and when it is announced, they dump it. Buy the rumour, sell the fact?
I dont think so.
This stock has been going up for several weeks on high volumes. Its rise has been slow and steady and not of a speculative nature.
Every1 knew this was a great company, just waiting for a decent entry. With endeavour back to 100% being already priced in, in my opinion, and TKR issue resolved, this company is simply being re-rated according to its earnings, pipeline of growth, peer valuations, sulfur springs bfs results are not too far away, and LME zinc firing.
Doesnt seem like a pump and dump to me, its been a slow steady rise, compared to PMH, the other week, or JAK or AUZ, this one's been really gradual.
Im really keen for CBH to form a support around 60, so it can equilibriate around that for this week, and hopefully this will form a long term support base for any retrace in the future.
Quarterly out soon for this company. Everything looks to be in check for this company to reallt fly.
disc. i hold
CanOz
Home runs feel good, but base hits pay bills!
- Joined
- 11 July 2006
- Posts
- 11,543
- Reactions
- 519
There was a good article in the Wednesday AFR on zinc producers, CBH was mentioned and the mine 'Endevour' was said to be starting sometime this month. I can't quote from my digital copy, sorry. Overall the article sounded quite positive on CBH and stated that it was or could be, a buying opportunity.
Cheers,
Cheers,
Similar threads
