CBH - CBH Resources

[Stan 101]

I have no basis for this, but I believe this is going to be all good news... I'm looking for other stocks in trading halt... Is there any data on what business is in trading halt that can be downloaded?


Cheers,

 

[Halba]

Hello all. It's definitely a placement of some sort. Look at the amount of capital required in the presentation. Money doesn't grow on trees people.

 

[jollyfrog]

Hey Stan 101 try cvn they have a trading halt untill 22/3

 

[blueroo]

hello all. its definitely a placement of some sort. Look at the amount of capital required in the presentation. Money doesn't grow on trees people.

Yep, my thoughts exactly. Looking at their showy presentation, planned capital expenditure equals everything they have got including cash in hand.

 

[UMike]

So is that good or bad for the SP.

With the way the SP has been sold down of late I feel it may be the latter.

 

[Halba]

Umike this is negative short term. Bear in mind zinc is in a seasonal slump and is no longer in deficit.

Of course considering they have a pretty good pipeline of projects fine long term.

I don't hold CBH.

 

[UMike]

Umike this is negative short term. Bear in mind zinc is in a seasonal slump and is no longer in deficit.

Of course considering they have a pretty good pipeline of projects fine long term.

I don't hold CBH.

BHP, ZFX, TZN, ect... have recovered from the recent negative activity. CBH has dropped further.
I hold a shyte load.
Since that is the case I watch them very very carefully. The last 2 days they have really been sold down.

From my research they are a great company and barring anything unforeseen should be a great long term investment.

 

[michael_selway]

Hey Stan 101 try cvn they have a trading halt untill 22/3

Looks like that are out of trading halt already.

thx

MS

 

[Halba]

Umike: BHP, ZFX, TZN, ect... have recovered from the recent negative activity. CBH has dropped further.

Hi UMike. I'm not sure whether you should compare bhp,zfx to CBH. For one, BHP is a goliath and has very good commodity spread, longer mine lifes, lower costs. Its a great company and I have some invested. Its going up because copper has recovered significantly. Its also a blue chip. Also ZFX is a medium cost producer hence still will make good money, pay good dividends at lower zinc levels. Also it hasn't really recovered, the chart shows it is struggling with $16.50 resistance.

TZN have just got their mine approval, this is why they recovered. They've been waiting a few yrs for their approvals. Not fair to compare with CBH, as TZN mkt cap only $150m.

CBH looks like a victim of its past problems, and high cost base of production(its probably the highest cost zinc metal producer on the market, with Perilya)

UMike: I hold a shyte load.

Obviously can't advise as i don't know how much you have relative to your portfolio, or your entry level/how long you have been in(it has appreciated from 25c since the mine problem). But consider some risk management in the future. Don't convert into a long term loser. Few reasons i did not invest in CBH was the management team(Besley and Wall in BMA gold failure), and the position on the zinc cost per pound curve. But they are aggressively going about their business and i like their vision.

 

[Moneybags]

Hi UMike. I'm not sure whether you should compare bhp,zfx to CBH. For one, BHP is a goliath and has very good commodity spread, longer mine lifes, lower costs. Its a great company and I have some invested. Its going up because copper has recovered significantly. Its also a blue chip. Also ZFX is a medium cost producer hence still will make good money, pay good dividends at lower zinc levels. Also it hasn't really recovered, the chart shows it is struggling with $16.50 resistance.

TZN have just got their mine approval, this is why they recovered. They've been waiting a few yrs for their approvals. Not fair to compare with CBH, as TZN mkt cap only $150m.

CBH looks like a victim of its past problems, and high cost base of production(its probably the highest cost zinc metal producer on the market, with Perilya)


Obviously can't advise as i don't know how much you have relative to your portfolio, or your entry level/how long you have been in(it has appreciated from 25c since the mine problem). But consider some risk management in the future. Don't convert into a long term loser. Few reasons i did not invest in CBH was the management team(Besley and Wall in BMA gold failure), and the position on the zinc cost per pound curve. But they are aggressively going about their business and i like their vision.

Very nice work Halba. One of your best. I'm sure U mike will be appreciative.

MB

 

[GeneralSantos]

Do we have consensus on the probability of a positive trading halt outcome?

I'm sceptically optimistic...

 

[goldman]

I spoke to the secretary of CBH yesterday said they where in the process of converting bonds to cash for the amount of 200mil whats ur opinion queing bid price has increased and PEM.AX shares are going up so should CBH. Strange offer price of CBH though of .45 when the bid is .535 and last price was .505

 

[Halba]

umike and all

I have got an article that shows zinc stockpile increases looking temporary. Thought you might be interested, so there is nothing to worry for your CBH shares.

LME FOCUS - Zinc price under pressure, as visible inventory builds up

BaseMetals.com

Zinc prices fell to their lowest for just over a month on the LME on Wednesday, due to warehouse inventories rising to their highest since late-October last year, and further stock increases are expected.

Warehouse stocks leapt 5,050 tonnes, or five percent, to 106,800 tonnes, to their highest since October 31 last year. Today's increase reflected an unusual shipment into Dubai, but further stock rises are expected in general, as off-warrant stockpiles are registered.

However, the stock build-up is somewhat illusory, as much of the recently-warranted metal is 'window-dressing' and not easily available.

"It has been put there for show only," an LME floor trader said.

Since the start of this month, LME zinc stocks have risen 13,275 tonnes, or 14.2 percent. A long-running inventory downtrend bottomed out in December 2006, when stocks fell to 84,825 tonnes, the lowest since 1991.

Traders said the warranting over the last week is part of a 15,000 increase. This is metal which has been off-warrant for some time.

"However, it is highly unlikely that this material will show up in the clearing as it almost certainly forms part of a 'term financing swap'," another trader said.

An international merchant is said to be 'parking' metal in some regions which are less easy to remove metal from -- Singapore and Johor, as well as Dubai. This shows up in reported stocks and depresses prices on the LME. Prices fell three percent on Wednesday to $3,120 a tonne, down $100 from Tuesday.

The inventory operation may also be designed to influence ongoing annual TC/RC (treatment charges/refining costs) negotiations between producers and smelters.

No benchmark has been set as yet, but a level of $300 a tonne is being favoured.

 

[UMike]

Thanks Halba

I'm not so much worried about Zinc rather than CBH.


The majority of shares were purchased at around the $.52 to $.525 mark.
I almost sold a huge lot at $.57 on the 12-3-07. Then I'd be happy with buying the amount that I did a couple of days ago.


I've had SEN, PPX, FUN and API get to a trading halt then fall dramatically to still make god money on them. (Well SEN is still pending )


I have nothing to add on this current situation so I'll wait with the rest of you as to what happens with CBH tommorrow.

 

[alankew]

Goldman spot on with your info-initially market didnt like it but seems to have changed its mind.Toho will be pumping in another $50 plus other players-got to be good news

 

[goldman]

Finding out whether someone had inside info before the halt of trade was made public because there was a mil and a half shares on offer for 45 after end of trade tuesday. considering the last price was 505 and the last bid was 52

 

[PBH]

Finding out whether someone had inside info before the halt of trade was made public because there was a mil and a half shares on offer for 45 after end of trade tuesday. considering the last price was 505 and the last bid was 52

Hmmm, well I think it would be hard to prove that this particular person had specific info, rather than just anticipating a negative reaction to whatever would be announced following the trading halt.

And as long as the price holds above 0.45, the actions of this person can hardly be said to have been vindicated. There's no law against selling your shares for less than you could have...

As for the announcement itself, I view it as positive overall, and expect the shareprice to behave accordingly in the coming months.

 

[goldman]

It would be very odd though if i find out that the offer of 45 went in before any announcements where made. ie why would u want to sell for .45 when the last price was 505 and bidding 52. the trading halt announcement went in at 6.00pm after trading.

 

[goldman]

Ps bad timing for a trade halt as cbh should be around 58 this week as all similar companies gained.

 

[Jimminy]

this was a comment I made elsewhere back in January re; CBH. Alot still applies:

Things that need to be kept at the forefront of an investor's mind looking for a buy opportunity are reflected in CBH. Here's why.

CBH Resources (CBH) has reported a return to full production at its Endeavor mine with production for the December quarter at 93% capacity. This was a 41% increase on the previous quarter and restores production to a 1.2 million tonnes per annum rate following the 6z2 stope hanging wall failure in October 2005. A total of 280,600 tonnes of ore at an average grade of 6.8% zinc, 4.0% lead and 32 g/t silver was treated during 2Q07 with 32,200 tonnes of zinc concentrate containing 16,300 tonnes of zinc and 18,550 tonnes of lead concentrate containing 9,080 tonnes of lead produced. Unaudited half yearly pre-tax operational profit was approximately $30 million. Note operational tax, not cash flow Fed Ex.

The focus for the quarter was on the establishment of consistent performance from mining unit processes such as production drilling, ore haulage and equipment availability. The progress made in mining development in previous quarters has resulted in the new 290 level of the mine being a major source of ore from primary stopes.

Zinc recovery averaged 85% for the quarter compared to 87% in the corresponding quarter in 2005. This reflected the lower proportion of courser grained development ore from the 290 level of the mine in the total tonnes milled.

The bankable feasibility study for the Sulphur Springs zinc and copper project in the Pilbara region of WA was completed during the December quarter and a project development plan is being finalised for presentation to the board this month. The Notice of Intent application for mining and for construction of the site access road has been submitted. Orders have been placed for the longest lead time items for the project, the SAG mill and ball mill, totalling $9.5 million.

The tender process for the decline to access the Western Mineralisation on CML 7 at Broken Hill as Phase 1 of the Rasp mine development was completed and the contract awarded during the December quarter. All approval applications for the development of the decline have been received. Site work on the decline commenced in the first week of January and is scheduled to be completed with orebody access in April 2008.

CBH has identified a potential copper resource at Mineral Hill that would allow the reopening on the mine. The project was acquired through the takeover of Triako Resources and work has commenced on defining mining options for the resource and establishing the re-opening costs and project economics. The company has also commenced the process of seeking necessary approvals to re-open the mine and re-commence processing of copper ore. Subject to receiving the approvals and final project economics being favourable a December quarter 2007 re-start would be feasible.

At the Hera project a review of the resource estimate is in progress that will update the previous Triako Resources total of 1.9 million tonnes averaging 6.7 g/t gold, 2.8% zinc, 2.5% lead and 14 g/t silver. Drilling has commenced to expand this resource and to test below some of the last holes drilled by Triako such as TNY074AW that intersected 6.9 metres averaging 17.1 g/t gold, 13.5% zinc, 8.2% lead and 45 g/t silver. Further exploration targets have been identified along the Hera trend of mineralisation that extends for a distance of 7 kilometres from the Hebe prospect in the south to the old Nymagee copper-lead-zinc mine in the north. Drilling has commenced on targets in the Hebe area.

The CBH share price has retraced from its highs of over 80 cents in early November 2006 for a variety of reasons that I believe included the market's reaction to the ultimately succesful scrip-based takeover of fellow NSW base metal developer, Triako Resources (TKR) and the loss of production from the stope failure. With the TKR takeover not only bedded down but CBH now talking positively about several base metal development opportunities being considered (being the Hera deposit and resumption of mining at the currently closed Mineral Hill mine) and Cobar mine back to full production rates and generating very strong returns from the high zinc and other metal prices, I believe the market will begin to re-rate CBH as it progressively achieves a number of production and new development milestones over the next year or so.

At its current price of 63 cents, I believe CBH is priced on relatively modest fundamentals compared to its peers and with its attractive development options, expect the market to begin to recognise this and re-rate the stock.

If this meets your risk profile I would recommend it as a buy. But as always do your own research and make your own decisions based on your circumstances.