CBH - CBH Resources

[Jimminy]

I think CBH offers one of the best value stocks in base metals at present. At 49.5c close this presents a terrific long term hold proposition.

I took a position today @ 50c.

By calculation, with RASP and Sulphur Springs to be developed zinc production could jump to beyond 200,000 tonnes by 2010.

 

[goldman]

News came back from ASX appears nothing out of the ordinary with .450 offer, CBH looks all good.

 

[UMike]

It is slowly starting to get back to a decent price again.

 

[UMike]

Upto 56c now.

LME Zinc up 4% atm. Glad I held on.

Any other holders?

 

[PBH]

Am I the only one here who thinks that the conversion price of $0.67 per share for the proposed convertable notes is far too low?

At the current price of $0.56 that works out at $0.11 appreciation over 5 years, or 2.2 cents per year....

It would seem to me that a more fair and reasonable conversion rate would be somewhere around the $0.75 mark.

As it stands I think the low conversion rate (should it be approved at the meeting) is going to put a serious long term dampner on any appreciation of the share price. Thus it might not be a bad idea to bale out once we get to around the $0.65 mark.

 

[Riesling]

The chart for CBH is looking seriously good at the moment.

Large volume on Tuesday, good open today and large volumes again so far today. Sentiment certainly appears to have changed.

As well as being a current producer, it has a number of projects in the pipeline, so growth should be positive and could be outstanding if managed well.

Looks to me like the recent pull back might be finished.

 

[Sean K]

The chart for CBH is looking seriously good at the moment.

Large volume on Tuesday, good open today and large volumes again so far today. Sentiment certainly appears to have changed.

As well as being a current producer, it has a number of projects in the pipeline, so growth should be positive and could be outstanding if managed well.

Yep, looks like it's turned from long term down trend. Needs to test 60, as new support to be validated.

 

[Riesling]

Thanks for posting the chart. plenty of support between 0.59 and 0.605. will be good to see where it finishes. I think I might get on if I can at 0.60.

 

[nizar]

Kennas.
Also note that its not trading above its 200dma.
It could also find suppport there, just below that is where i would put my (EOD) stop if i was trading this one.

 

[goldman]

Still way undervalued theres a heap of tin pot exploration companies out there for the same money that arnt even producing or earning money.

 

[GREENS]

BSD or anyone else that is into base metals, I have been meaning to do a personal valuation for CBH for a while now, but each time I sit down to do one, I get deterred because I am unsure whether you value the company on its zinc concentrate or contained zinc.

 

[Lachlan6]

Just checked out the company report on Westpac site. Couldnt agree more on this one. On weekly just recently bounced off resistance turned support and I will enter if it can break the May highs of $0.65. Predicted MUCH higer earnings in next two years placing it at a steal at prospective 8 times PE next year. Waiting and watching closely.

 

[UMike]

CBH announcement:

They are fast tracking the RASP mine in Broken hill.

Shares jumped 3.5c on the announcement. to a .56c close

Just need Zinc prices to move up abit to see this sp consolidate over 60c

 

[GREENS]

Any thoughts on these new dill results at Kangaroo Caves? The grades look good in places but seem to be no depth to the mineralization with the largest intersection at 20metres.

Would create huge efficiencies for CBH if another economical deposit could be mined close to the existing Sulphur Spring mine currently under development. Drilling will continue at two other locations of the next few the company said, however the markets weren’t too fused with this announcement at all.

13/6/07 “Seventeen holes have been completed at the Kangaroo Caves Zinc-Copper Deposit and five of the first six holes returned significant intersections of zinc and copper mineralization”:

KCC 20 from 101 to 110 metres 9 metres @ 2.6% Zn, 0.1% Cu
112 to 132 metres 20 metres @ 13.7%Zn, 0.2% Cu
139 to 151 metres 12 metres @ 2.7% Zn, 0.1% Cu

KCC 18 from 58 to 73 metres 15 metres @ 11.6% Zn, 0.3% Cu
108 to 115 metres 7 metres @ 0.3% Zn, 2.7% Cu

KCC 21 from 105 to 108 metres 3 metres @ 2.9% Zn, 0.1% Cu
128 to 139 metres 11 metres @ 1.0% Zn, 0.2% Cu
139 to 145 metres 6 metres @ 0.4% Zn, 2.7% Cu

KCC 19 from 47 to 55 metres 8 metres @ 1.7% Zn, 1.0% Cu
60 to 68 metres 8 metres @ 3.4% Zn, 0.6% Cu

KCC 22 from 41 to 49 metres 8 metres @ 1.7% Zn, 0.1% Cu
56 to 58 metres 2 metres @ 0.1% Zn, 1.5% Cu


Previous drill results last year (06) were very similar:

KCC 9 metres @ 13.3% Zinc and 1.9% Lead, from 63-72 metres and
56 metres @ 6.8% Zinc and 1.0% Copper, from 95-151 metres

KCC10 24 metres @ 6.5% Zinc and 0.5% Copper, from 213-237 metres
KCC4 6 metres @ 11.0% Zinc and 2.5% Lead, from 233-239 metres

 

[Lachlan6]

Just another quick look at (CBH), after today's nice little rise on big volume. It needs to break the 38.2% fibonacci level before I will jump in, however the bullish divergence in the RSI in Feb and March has shown that CBH has bottomed and is now looking for a run higher. Furthermore, it is currently sitting around the long term downtrend line, so clearing this is crucial for the fortunes of CBH. However I really like the fundamentals of this company and if this resistance can be broken, it should target the old highs of $0.85 and from there, who knows.

 

[Sean K]

Just another quick look at (CBH), after today's nice little rise on big volume. It needs to break the 38.2% fibonacci level before I will jump in, however the bullish divergence in the RSI in Feb and March has shown that CBH has bottomed and is now looking for a run higher. Furthermore, it is currently sitting around the long term downtrend line, so clearing this is crucial for the fortunes of CBH. However I really like the fundamentals of this company and if this resistance can be broken, it should target the old highs of $0.85 and from there, who knows.

Lauchy, chart wise this is starting to look really interesting. Not sure why it didn't continue on at the start of May. That push looked like a clear break from it's downward trend since Nov/Dec last year. Breaking 65 looks like a pretty hard challenge. If it clears it, then there's weak resistance back to 85. Looks good at the moment. Will be watching closely. Thanks.

 

[UMike]

This stock is the good news of the day.

Had a high resistance @ 60c wiped away very quick.

Next resistance is @ 62c imo.

 

[Dutchy3]

I'm with the bulls on this one ... looking for a strong close next week with STOP around 55 ish

Should be able to gear nicely into a position

 

[UMike]

Monday should be a strong day for this share given the consolidation on Friday the increase in the DOW and Zinc price overnight.

 

[GREENS]

However I really like the fundamentals of this company and if this resistance can be broken, it should target the old highs of $0.85 and from there, who knows.

CBH up around 5% on extremely strong volume of 7.3 m to $0.63 as at 11:30 am, and nearing that strong resistance level at $0.65. Lauchlan, Kennas and UMike from a Fundamental view I did a few conservative figures on CBH for the full year 07 (i.e. start Jan – end of Dec) and have not yet completed the following years, this is a summary of what I came up with:

Assumptions:

•Total ore output of endeavor mine is around 1.05 million tonnes for 07 which is well below the full capacity of the mine (1.2-1.3m tonnes p.a.). Out of this is approx 6.6% Zn, 3.5% Ld, with recovery levels of around 85%, 81% respectively. In additional to their main base metals production the mine produces around 15,500kg of silver & 1,000t of copper.
•Using average prices received for 07 of:
Zinc – US$1.60/lb
Lead – US$0.80/lb
Silver – US$12/oz
Copper – US$3/lb
•Used around a 20% profit margin to take into a/c all the exploration and development activity the company is currently undertaking at Sulphur Springs, Broken Hill and the Cobar district.
•Company has approx 780m shares on offer.

Risks:

•This company like most does not come with out its risks however problems have plagued the Endeavor mine in the past, cave in of part of the mine occurred at the end of 05, where production was stopped for a prolonged period of time.
•Management are unreliable, announcements come out months after there due and production levels seem to always fall short of there expectations.

Result:

Given the company continues to trade on a PE multiple of 10 the company should generate EPS of around $0.09 which equates to a market cap = 702m i.e. a 42% premium to what they are trading on in intraday this morning (Aspect Huntly has forecasted EPS for 07 and 08 of $0.06 and $0.11). The company has some potential upside with two new mines to come online over the next 2 years which will see a three fold increase in copper and a significant rise in zinc and lead production.

Greens