CBH - CBH Resources

[Morgan]

One advantage of having the Newcastle Port Handling facility is that they hopefully gave their own ore priority during the bottleneck!

All those ships waiting off Newcastle are for the coal loader berths.
CBH product is loaded at a different terminal completely within the port- no bottlenecks there.

 

[dj_420]

CBH looks to have broken that 0.65 resistance point. nice volume and support on screen.

zinc and lead stockpiles falling still. CBH will be making quite a bit extra on the lead thanks to this latest increase.

i picked up CBH this morning on the break of that resistance.

 

[123happy]

It does look nice,

a breakout after months of consolidation.

I may consider to swap from nickel to zinc and lead or iron ore

 

[motion]

CBH looks to have broken that 0.65 resistance point. nice volume and support on screen.

zinc and lead stockpiles falling still. CBH will be making quite a bit extra on the lead thanks to this latest increase.

i picked up CBH this morning on the break of that resistance.

Hey dj_420, I see you have taken out some CBH, I was already in from last week but did not know the break out was going to happen... .. what did you make a tradding today ? Good support around 0.66 with big volume over 8 million turning over today, also not to many people getting out at closing..... will be interesting to see how the morning opens...


Thanks

 

[UMike]

I'm all out of this one.

Took the profits.

Theres probably still heaps of potential in this company but too many times I've seen itgo up to the low to mid 60s and not sold as much (if any) that I should of.

Will buy more @ below 60 again at any time.

 

[champ2003]

I'm all out of this one.

Took the profits.

Theres probably still heaps of potential in this company but too many times I've seen itgo up to the low to mid 60s and not sold as much (if any) that I should of.

Will buy more @ below 60 again at any time.

Wow that's amazing that you think that this will hit 60 cents again. It will be interesting to see.

 

[dj_420]

Hey dj_420, I see you have taken out some CBH, I was already in from last week but did not know the break out was going to happen... .. what did you make a tradding today ? Good support around 0.66 with big volume over 8 million turning over today, also not to many people getting out at closing..... will be interesting to see how the morning opens...


Thanks

technically it looks good, here is a medium term chart showing a few things. from other peoples charts looks like it has broken the medium term resistance around 64-65 cents. i would have actually liked it to close around 66 - 67 rather than come back a little to the resistance line.

the past four months has formed a large triangle formation. with the last week or so showing that the shareprice tightened before the break yesterday. the last few days have also shown a massive volume spike. the MACD looks like it has been consolidating and started to move away from yesterdays action.

i would put upside resistance around the round figures of 70, 75 and 80 cents. when i was in this one last year these figures showed to be support and resistance. sometimes the round numbers are a bit of a psychological thing also, someone may be willing to pay 66, 67 and 68 cents but dont think it is worth 70 cents.

good to see that breaking that medium term resistance it gapped up. could be technical traders entering or also fundamental.

fundamentally CBH is great. they are producing decent amounts of lead and zinc right when the LME stockpiles are starting to get quite low. the increase in lead price could see a lot of people move to CBH as they also have a good amount of lead at endeavour.

tomorrow will be the test IMO, it closed on 65 cents so we want to see that price hold and actually show a good increase tomorrow.

even if it comes back a bit im going to top up as i want a bit more exposure to what IMO will be another zinc run. compared to peers ZFX, JML are near or making highs while CBH is well off these highs.

 

[motion]

dj_420, great write thank you for sharing the information with us. I'm very interested in this stock at the moment and think you are correct there is a ZINC run at the moment and looks like there is more to come.

Here is some news I just read it's about Nickel falling and Zinc gaining, it's not going into alot of detail about Zinc, but very interesting to read and also see it's making headline news on http://www.kitcometals.com/.

http://www.bloomberg.com/apps/news?pid=20601012&sid=arxLMcA7ssAk&refer=commodities

thanks again..

 

[hypnotic]

Zinc spot price should be rerated very soon, due to the fallen stock level in the LME. It is been at its lowest level since forever and this is reflected in the increase in spot price zinc today. Given time we should see the spot price of Zinc back in the US$1.80 - US$1.90/lb mark, which is an increase of roughly 10%.
Also there is still plenty of demand for iron (steel) in China so there should be demand for zinc also.

It is possibly the increase in the zinc spot price driving up the zinc miners.

JML - up 4%
CBH - up 5.88%
ZFX - up 1.44%
the only exception is KZL - down 0.3%

Hypnotic

Zinc is on the move up $0.0451 to US$1.658/lb at them moment
Rising sharply after today's little dip. No doubt we will see zinc miners go well. Keep a close eye on the LME stock level... there is still no sign on a turn around yet which put pressure on the spot price. Within two weeks i guess zinc spot will be back up to the $1.80 - 1.90 mark, especially as the LME stock level gets close to 50000 tonnes!

Cheers,

 

[GREENS]

CBH is looking strong both technically and fundamentally at the moment and was very pleased to see it break out of that large triangle ($0.64) that has been forming for months on almost 3x average volume. I have held this for a while and hope my patience will be rewarded very shortly. As I have stated previously the fundamentals of this company are very sound and by my calculations (shown in previous posts) should be trading closer to the $1 mark. I was happy to see the company hedge 25% of Ld production around the $1.10/lb mark a short time ago, But now seeing the Ld spot price surge above $1.50/lb doesn’t look so crash hot anymore, I suppose at least 75% is still exposed to these higher prices, while there Zn production still remains fully unhedged.

Keep a close eye on the LME stock level... there is still no sign on a turn around yet which put pressure on the spot price. Within two weeks i guess zinc spot will be back up to the $1.80 - 1.90 mark, especially as the LME stock level gets close to 50000 tonnes!

Hypnotic I wouldn’t count your chickens to early, it will still take some time for stocks to fall below the 50K mark as inventories have been falling at a much slower rate than previous years, and as we have seen many times before, large rises in inventories in relatively short periods of time have occurred in more recent times. And don’t forget Zn inventories have steadily trended down for the last 6months (draw downs of approx 32,000t), yet Zn has been largely trading in a range between $1.60-$1.70, thus the relationship between the price of Zn and inventory draw downs has been uncorrelated. Let’s hope this all changes very shortly but not get to carried away just yet. As I have stated before the longer the price fails to identify the fundamentals the greater the likelihood of a larger rise when the momentum gets going.

even if it comes back a bit im going to top up as i want a bit more exposure to what IMO will be another zinc run. compared to peers ZFX, JML are near or making highs while CBH is well off these highs.

The only reason I can see why CBH trades at a discount to its rivals and is not trading at or near to a 52 week high like many other Zn miners is because of its higher risk as a single mine company (which has encountered problems in the past and is still a major risk for CBH investors), as soon as it becomes a multi mine company it will surely be re-rated and trade on a similar multiple to KZL (i.e. trade on a higher PE multiple of 14 instead of 10).

 

[GREENS]

Very very disappointed in the quarterly production figures of 10,400t Zn and only 4,600t Ld contained metal. The only upside to this is that development occurred in the mine during the past quarter to increase production capacity over the medium to longer term. But still production was back to around 60% of full capcity...

by my calculations (shown in previous posts) should be trading closer to the $1 mark.

This poor production for the quater pushes the companies valuation back towards the 80c mark.

 

[dj_420]

Very very disappointed in the quarterly production figures of 10,400t Zn and only 4,600t Ld contained metal. The only upside to this is that development occurred in the mine during the past quarter to increase production capacity over the medium to longer term. But still production was back to around 60% of full capcity...



This poor production for the quater pushes the companies valuation back towards the 80c mark.

market seems to like it

production was up oviously from re-commissioning, so all i can say is that once next few mines come online in next year or so CBH will be looking really strong.

 

[GREENS]

market seems to like it

production was up oviously from re-commissioning, so all i can say is that once next few mines come online in next year or so CBH will be looking really strong.

DJ I don’t think it was the production figures that got the market going (these are poor and there’s no question of that), but the reaction is more to do with the companies strong development and exploration work over the coming months

•Mineral Hill/Hera exploration and evaluation of re-opening mine
•Fast tracked Devt of Rasp Mine
•Final stages of SS approval
•Recommencement of Drilling at Sorby Hills
•Awaiting results of 4 drill holes in Panorama exploration (breakers and Jamesons)
•Upgrade Reserve/Resource calculation of kangaroo Caves on its way
•Drilling commenced late in the previous quarter at Napier Range (JV with Teck Cominco)

 

[lioness]

I cannot believe anyone here has not analysed the little cousin involved in Kangaroo Caves - SRI - Sipa Resources.

It has a 40% interest in Kangaroo and is about to announce a resource upgrade to its previous estimate. DYOR. Much more upside than CBH.

 

[Dutchy3]

After the day our market had this stock put in a great effort and on heavier volume ... this one will be a bit of a goer from here back up to the 80's

 

[Pat]

DJ I don’t think it was the production figures that got the market going (these are poor and there’s no question of that), but the reaction is more to do with the companies strong development and exploration work over the coming months

•Mineral Hill/Hera exploration and evaluation of re-opening mine
•Fast tracked Devt of Rasp Mine
•Final stages of SS approval
•Recommencement of Drilling at Sorby Hills
•Awaiting results of 4 drill holes in Panorama exploration (breakers and Jamesons)
•Upgrade Reserve/Resource calculation of kangaroo Caves on its way
•Drilling commenced late in the previous quarter at Napier Range (JV with Teck Cominco)

Not sure if it was the ann that got the market going. Just a catalyst for the uptrend to continue. It's been going strong last 3 days on some large volume and broken out. Either someone knows something and CBH pulls an ace out of it's sleeve, or the market sees a run in Zn, and CBH looks a bargin. I'm thinking the latter, and agree with hypnotic, given 3 months, $1.80/lb doesn't seem that far away.
Got in yesterday at 65 cents, fingers crossed

 

[MegaV]

Got 10000 units today at 0.595!
this share defanitely has long term potential. Going from a 1 mine to a 3 mine company will do wonders to the cash flow. Great long term hold!

 

[UMike]

Wow that's amazing that you think that this will hit 60 cents again. It will be interesting to see.

Well.... Bought in again at 59c and 60c,

I know it is unusual circumstances so I'll be happy for CBH to never drop below 60c again

 

[goldman]

yeah good buying opportunity got rid of a lot of panic sellers and early profit takers. Zinc is still at a good price nothing really changed, even after friday nights wall street decline BHP biliton is back up nearly 1% at after market.

 

[muddy]

I pick up bits of this one now and again for the long term and everytime i do its at the top of a peak. Not really a prob but still kind of annoying