CBH - CBH Resources

[nizar]

You are quite correct, my apologies. Given that there was no announcement of return to full production during October, and we are already well into November, using "December quarter" may have been a way to suggest that it would not be in October without affecting the S.P. too much??

Probably. This management is a bit dodgy. They dont seem to be working hard enough to gain back investors trust. Where is that BFS results announcement for sulfur springs??? was meant to be released in july??? But Who cares, as long as im making (substantial) profit from these guys, i guess i shouldnt bother myself too much!

 

[Tetrahedrite]

Probably. This management is a bit dodgy. They dont seem to be working hard enough to gain back investors trust. Where is that BFS results announcement for sulfur springs??? was meant to be released in july??? But Who cares, as long as im making (substantial) profit from these guys, i guess i shouldnt bother myself too much!

I agree, the delay with the SS BFS is really starting to get annoying. However, having said that, I've had a fair bit to do with Prof. Ian Plimer (Non-executive director) and I've also met Bob Besley (Managing director) and I get the impression, especially from Plimer, that the company isn't really in any great hurry and is taking the "softly, softly" approach to expanding the company.

 

[dj_420]

a bit of consolidation now is good. the market is down so hopefully see some support kick in around the 75 cents mark, then SS BFS ann and off we go again.

the agm is on friday (if i remember correctly) so SS BFS could be released tomorrow morning to coincide with meeting.

 

[Tetrahedrite]

Another thing, no one here seems to have discussed the potential of the Mineral Hill mine. With CBH being a much larger (and more able, IMO) company than Triako, they might be able to get it going again. When I visited the mine 18 months ago I got the impression there were still several years of reserves left, and that this was open ended??? Maybe the economy of scale they will get from mining the Hera deposit at Nymagee will make it economic to re-open???

Having said that, I have visited four of CBH's deposits (including Endeavor and Rasp), and I really think that this company has great potential going into the future. All of the deposits seem to be very promising and if they manage to get at least four of their deposits online (Endeavor, SS, Hera, Rasp) in a year or two, then anyone who holds onto their investment now will be handsomely rewarded. This is purely my opinion of course.

 

[maverick11]

I've worked at Endevour briefly. One of the ****tiest UG mines I've been to. This was last year, and I'm assuming CBH still owned them then. My opinions of endevour last year were they are cheap, as in they didn't like spending money and maintaining a high level of professionalism. Their safety is also poor, and it's only a matter of time before they get another fatality. When I was there, they were letting of 40gal drums full of explosives during shift with people still underground. I also witness the shift supervisor running around inside an open stope to place a couple explosive charges at the base of the rill pile which was stood up due to oxidation. To go into an open stop (which is a massive UG void) is insane...especially when the rill pile is stood up and could collapse at any second!!!!

Oh well, just thought I'd share

..oh, though i might also add the buddy i worked with quit because he was in charge of explosives and the mine kept asking him to do unsafe things which he refused to do...ie let off 40gal drums full of explosives during shift in a mine that has potential dust explosion issues too.

 

[Tetrahedrite]

Haven't been underground at Endeavor, I've only been to the core yard, so I can't really comment. They seem to have had some geophysical problems at Endeavor (Elura) over the years. In addition to the recent collapse, several levels from the surface down collapsed in 1996. If you saw the material they were mining from the base of oxidation, you wouldn't be suprised. I would describe it as spongy, certainly not hard rock. It was absolutely packed with native silver though, so you can understand why they mined it

 

[maverick11]

crickey I forgot about that. Surface subsidence was nasty after a section of the UG mine collapsed. I think they filled it now.

 

[Tetrahedrite]

Looks like full production at Endeavor will be announced at the general meeting today, back to 100,300 tonnes per month, which by my reckoning just makes the target of 1.2 Mtpa. Hopefully this will give the sp another shove in the up direction??

 

[alankew]

Tetra good call,has indeed returned to full production.There is a link to the release on the asx website

 

[nizar]

Yes finally. Full production in october. Was scheduled in mid-2006 intially.
Sulfur Springs BFS results were due in July. Where are they now?
WHen will this company start doing things on time ?

 

[alankew]

Statement says that Sulfur Springs due this qtr and that long lead time equipment has been ordered.Even though its late in the current bullish environment and with the Christmas push timing should hopefully give a boost to sp

 

[Sean K]

Statement says that Sulfur Springs due this qtr and that long lead time equipment has been ordered.Even though its late in the current bullish environment and with the Christmas push timing should hopefully give a boost to sp

Hmmm, maybe not so great timing. Zn down 4%. Maybe not good news enough to save it? I hope so. It's the only zinc play I own atm.

 

[dj_420]

I think it will be good enough news kennas. market still doesnt realise back to 100% production, link on the asx website leads to ann regarding production.

copper dropped however zinc is still only just under 2.00 per pound, thats a huge increase that we have already seen on spot over last couple of months.

i think zinc is still great, copper has come off the boil and zinc is about to jump on the hotplate for a great run.

other projects are looking fantastic for growth also.

have a read of the ann kennas and let me know what you think.

 

[sleeper88]

interesting read,

Goldcorp's $200m Peak mine piques interest
November 11, 2006

CANADA's Goldcorp is selling the Peak goldmine in the central west of NSW in a deal that could fetch up to $200 million.

The underground mine, which produced nearly 120,000 ounces of gold in 2005, has come onto the market at the same time as two similar-sized operations in Western Australia. Barrick is selling its Paddington assets and administrators are disposing of Croesus Mining's Norseman operations.

Oceana Gold, which mines in New Zealand and recently merged with Climax Mining, has expressed interest in Peak. But other companies could bid for the Cobar mine, which has at least six years of gold production remaining.

"We would certainly be interested to have a look," Dominion Mining managing director Peter Alexander said.

St Barbara sold its $19.2 million stake in Mercator Gold on Friday to help fund development of its business and potential acquisitions. Its managing director, Eduard Eshuys, confirmed his company had expressed interest in Paddington and Norseman, but said St Barbara was already out of the running. It was "not actively pursuing" Peak.

CBH Resources, which owns the Endeavour mine in Cobar, said it could also be interested in Peak.

Goldcorp representatives in Vancouver could not be reached for comment on Friday, but it is believed the company is selling Peak to focus on bigger projects after its recent $US8.6 billion ($11.2 billion) purchase of Glamis Gold.

Barrick is selling its Paddington operations, which it picked up through its merger with Placer Dome, for similar reasons.

"It seems to be another case of companies that are getting larger disposing of assets that are of less relevance as they grow," Fat Prophets resources analyst Gavin Wendt said.

At standard valuation models of about $100 to $200 per ounce of resource, Peak could be worth $100 million to $200 million, he said.

It is believed Paddington could cost about $100 million and Norseman more than $60 million.

 

[Tetrahedrite]

This could be a very interesting development indeed!!! If they bought out Peak it would make the mining their newly acquired Hera gold mine much more attractive.

For starters, the Peak processing plant is set up to treat gold, whereas the Endeavor plant would have to be modified.
Secondly, if they were going to truck the ore to the Peak they would be saving 2 x 45 km = 90km per truckload of ore!!!! Must be more economical.
Lastly, Peak Gold Mines (PGM) don't just own the Peak, they own the New Cobar Au-Cu deposit, the Chesney Cu deposit, and the New Occidental Au deposit (I believe), thus making CBH a big player in copper and gold as well. Be interesting to see what happens.

 

[nizar]

This could be a very interesting development indeed!!! If they bought out Peak it would make the mining their newly acquired Hera gold mine much more attractive.

For starters, the Peak processing plant is set up to treat gold, whereas the Endeavor plant would have to be modified.
Secondly, if they were going to truck the ore to the Peak they would be saving 2 x 45 km = 90km per truckload of ore!!!! Must be more economical.
Lastly, Peak Gold Mines (PGM) don't just own the Peak, they own the New Cobar Au-Cu deposit, the Chesney Cu deposit, and the New Occidental Au deposit (I believe), thus making CBH a big player in copper and gold as well. Be interesting to see what happens.

CBH dont have the cash to buy anything else. Its only this quarter when they will return to profitability. I reckon the management focus should be on getting Rasp and Sulfur Springs to production, thats already more than enough for production upside, instead of trying to take over the world.
The last thing we want is even more shares on issue and another eps decrease for these guys.

 

[Tetrahedrite]

CBH dont have the cash to buy anything else. Its only this quarter when they will return to profitability. I reckon the management focus should be on getting Rasp and Sulfur Springs to production, thats already more than enough for production upside, instead of trying to take over the world.
The last thing we want is even more shares on issue and another eps decrease for these guys.

This is true, but Peak is an operating mine, and they would be generating cash flow immediately from it. If you consider this, and the amount they will be spending on modifying the Endeavor plant and on haulage, then it might be worth it?? Having said that, I think you are probably right, they don't really have the money at the moment.

 

[YOUNG_TRADER]

Sulphur Springs and RASP CML7 will take years and $millions to bring online, if they can diversify their operations into a 2nd plant for a cost of around 1/8th to 1/4th of their current mkt cap it makes sense to me,

I know they don't have the cash and they should be focusing on getting RASP CML7 + Sulphur Springs going but those operations are at least 12months away,

I reckon PEM should just buy up everyone, they are the Cash Cow King!

 

[Sean K]

These tails indicating the buyers have overcome the sellers are a good sign to me. Might be too early to tell, but there's a few buyers entering at $0.73, which seems a short term support line. Zn down again tonight might alter that....

 

[YOUNG_TRADER]

I recieved my Sept Qtrly update from BMO (BMA Gold today) even though I sold ages ago,


Interesting thing is though that the letter came from CBH Resources!

A bit more digging shows that BMO and CBH share 2 of the same management (who have been only recently appointed to BMO)

Hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm interesting