CBH - CBH Resources

[brerwallabi]

CBH was around the high 20's many many moons ago before the mine collapse and when zinc was $0.65 a lb. At full production and the current supply/demand situation taken into account it must rank a $1.00 plus so anything picked up at these current prices will see your money doubled at least in my opinion, so buy now or try to get in lower I am not sure. Well charts are out the window right now but I believe I have worked out some buys to hold onto to make the most of the coming resource recovery and CBH is one I will be holding.
And to think I sold CBH.

 

[michael_selway]

another annoucement from CBH, so many in recent weeks

http://www.asx.com.au/asxpdf/20060524/pdf/3wwgr0shg4xsv.pdf

CBH Resources Limited has reached an agreement in principle which subject successful negotiation of detailed joint venture arrangements and final CBH Board approval will see the company become a joint venture partner with WRF Securities Ltd in the Constance Range Iron Ore Project.

It is proposed that, CBH will earn an initial 30% interest in the joint venture by paying $1 million in CBH shares plus $200,000 in cash and by completing the project prefeasibility study over a period of two years at an expected cost of $2 million.

The cash would be paid on the signing of a joint venture agreement, with the shares to be issued once CBH is registered on the title of the exploration licence relating to the Project.

In addition, CBH may elect to earn an additional 20% equity in the joint venture by completing a bankable feasibility study. The anticipated budget for this study has been estimated at $5 million.

The Project is located approximately 40km from the world-class Century Zinc mine in far north Queensland. The Project area was extensively explored by BHP between 1956 and 1963, with work completed including over 200 drill holes, the sinking of two exploration shafts, underground mining trials and bulk sample extraction for beneficiation test work.

BHP identified significant sedimentary hematite mineralisation at Mt Constance and reported a pre-JORC resource of 245 million tonnes grading 51.3% iron (Fe) and 9.4% silica (SiO2) for one of three deposits outlined (This resource does not comply with current ASX reporting rules for ore reserves and resources, as a proportion of the drill core is not available and survey data requires clarification). The iron horizons range from 2 to 8 metres in thickness as gently dipping beds and are present over a strike length of more than 30 kilometres within the WRF exploration licence.

The Constance Range iron deposits have the characteristics to support a large scale pellet plant for production of direct feed to both blast furnace steel plants and DRI (direct reduction iron) plants. The largest current producer in the pellet market is CVRD of Brazil which also bases its pellet production on hematitic ore that are similar in grade to the Constance Range deposits. The pellet market is growing in importance in the world iron ore trade.

thx

MS

 

[kgee]

I listened to the directors speech on boardroom radio earlier this month...He was asked how they would go about not becoming a takeover target...his reply "growth"
well they're growing and diversifying
For those interested Fat Prophets remain bullish on commodites ,Nickel,Iron and zinc in particular (fundamentals) and even went as far to say they see gold hitting a $1000 before the end of the year

 

[michael_selway]

Actually it is because of the Zinc Price about 5% increase on LME overnight, thus nearly most of the below rose alot today

Zinc Majors: ZFX, PEM, KZL, TZN, CBH , OXR
Zinc Minors: HER, AIM, JML, INL, UCL, AUL

Nizar, actually they updated alot of consensus forecasts today, see below

CBH - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 1.4 -2.3 11.4 10.8
DPS 1.0 0.0 1.0 1.0

PEM - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS -2.8 32.1 68.3 54.6
DPS -- 2.0 2.0 2.0

ZFX - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 35.9 166.0 219.0 156.5
DPS 4.0 36.5 50.0 29.0

KZL - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 7.2 20.7 55.9 40.1
DPS -- 0.0 0.0 0.0

OXR - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 5.6 24.2 16.1 15.1
DPS -- 2.0 2.0 2.0


thx

MS

An Update anc compare

CBH - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 1.4 -2.3 11.4 10.8
DPS 1.0 0.0 1.0 1.0

PEM - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS -2.8 34.1 57.9 47.4
DPS -- 2.0 2.0 2.0

ZFX - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 35.9 184.9 279.5 162.8
DPS 4.0 37.5 50.0 30.0

KZL - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 7.2 17.6 64.0 41.7
DPS -- 0.0 0.0 0.0

OXR - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 5.6 32.2 21.4 16.0
DPS -- 2.0 2.0 2.0

thx

MS

 

[nizar]

ZFX continues to amaze me

Its rise has been meteoric but EARNINGS HAVE BEEN RISING FASTER STILL!

 

[samsterchan]

CBH on the rise !

CBH is looking good .....

Interesting article attached

http://metalsplace.com/metalsnews/?a=5164

This company is going places with the takeover of Triako Resources, its multi-faceted mining resources, latest one of which is iron ore.

What are the chances of this company being a takeover target itself with Endeavor, Sulphur Springs to name a few.

All it needs now is to find uranium !

 

[YOUNG_TRADER]

A Pilbara native title claim group has completed the signing of three mining agreements in one day, a landmark achievement in native title negotiations.

The Njamal native title group reached agreements with CBH Resources Ltd, Consolidated Minerals Ltd and individual miner, Barry Kayes. Njamal were represented in all three agreements by the Pilbara Native Title Service (PNTS), part of the Yamatji Marlpa Barna Baba Maaja Aboriginal Corporation (YMBBMAC).

Njamal people representative and deputy chairperson of the PNTS Steering Committee Doris Eaton said that its working group had been negotiating with mining companies for many years and had reached many agreements.

The CBH-Njamal agreement concerns the Sulphur Springs project, an open-cut copper and zinc mine and processing plant located 160km southeast of Port Hedland and inside Njamal country.
The agreement has a range of provisions including a financial settlement, employment and training initiatives and undertakings in the areas of heritage and environmental protection.



Just wait for the re-rating!

 

[kgee]

lots of news coming out from these guys lately...I hope they can get sulphur springs operational before 08 and that metal prices haven't crashed...a one year payback at current prices almost sounds too good to be true

 

[kgee]

Sinosteel spreads wings

Ben Sharples
Wednesday, June 21, 2006

CHINA'S largest importer of iron ore, Sinosteel, is spreading its wings into Australia's base metals sector and is seeking investment or off-take opportunities to supply concentrate to smelters in China, with CBH Resources and Jubilee Mines touted as potential partners.



Sinosteel Australia managing director Cui Xiaofei

Sinosteel Australia managing director Xiaofei Cui told MiningNews.net the company was in discussions with four "end of users" and had signed exclusive agreements with two copper and zinc smelters to supply concentrate from Australian sources.

The two smelters have a combined total annual output of 160,000 tonnes of copper metal and 300,000t of zinc metal.

Cui said the two smelters currently procure their raw materials mainly from the spot market but with capacity expansions being planned, they were aiming to secure a stable supply of concentrate feedstock.

On the supply front, Cui said the company was in discussions with zinc producer CBH Resources in regards to securing zinc and copper concentrate.

"CBH Resources are preparing an information memorandum, once that is ready we'll talk a deal with them," he said.

However, CBH managing director Bob Besley told MNn the company was in preliminary discussions with a whole range of people but nothing was firm at this stage.

Besley said any possible off-take agreements would involve the Sulphur Springs copper-zinc-silver development in Western Australia (currently the focus of feasibility studies) because all of the production out of its mainstay Endeavour mine in New South Wales was "pretty well tied up".

Sulphur Springs is being planned as a 1.25 million tonne per annum mining and processing operation producing a 75,000tpa zinc concentrate (grading 53% zinc) and a 65,000tpa copper concentrate (grading 25% copper).

On the nickel front, Cui said the company was in early discussions in regards to supplying Anshan Iron & Steel, China's second-largest stainless steel producer, with nickel concentrate from Australian sources.

Cui said he had met with Jubilee Mines executive chairman Kerry Harmanis two weeks ago but said "it is very initial stages".

Sinosteel has been busy on the WA iron ore front, signing memorandums of understanding with Jupiter Mines and Cape Lambert Iron Ore earlier this year, and forming a JV with iron ore producer Midwest last October.

 

[YOUNG_TRADER]

Read that a few days ago, what suprises me is how rapidly Sino Steel is expanding out of main stay Iron Ore Sector, to the broader base metals market, is China that desperate for base metals?

 

[michael_selway]

An Update anc compare

CBH - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 1.4 -2.3 11.4 10.8
DPS 1.0 0.0 1.0 1.0

PEM - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS -2.8 34.1 57.9 47.4
DPS -- 2.0 2.0 2.0

ZFX - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 35.9 184.9 279.5 162.8
DPS 4.0 37.5 50.0 30.0

KZL - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 7.2 17.6 64.0 41.7
DPS -- 0.0 0.0 0.0

OXR - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 5.6 32.2 21.4 16.0
DPS -- 2.0 2.0 2.0

thx

MS

An Update

CBH - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 1.4 -2.3 14.3 23.4
DPS 1.0 0.0 1.0 1.0

PEM - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS -2.8 38.8 70.9 60.5
DPS -- 2.0 2.0 2.0

ZFX - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 35.9 188.6 286.0 200.5
DPS 4.0 40.0 50.0 55.0

KZL - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 7.2 19.4 62.3 51.0
DPS -- 0.0 1.5 0.0

OXR - Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 5.6 33.2 22.8 21.1
DPS -- 2.0 2.0 2.5

Date: 22/6/2006
Author: John Wasiliev
Source: The Australian Financial Review --- Page: 27

Pairs trading is a useful technique for investors in contracts for difference (CFDs) when the sharemarket is volatile. Man Financial's Richard Avery-Wright says it works because it is based on the relationship between two stocks rather than market trends. It can be applied where there is an historical pattern: one share outstrips another, then the other share catches up. The idea is to take a long position in the stock that catches up and short sell the other. In May 2006, Avery-Wright says Zinifex and BHP Billiton provided a "classic" example of this type of behaviour

thx

MS

 

[kgee]

Hey Michael do you know what figures theyr'e using for price of zinc???

 

[Sean K]

Looks like CBH ducking for it's next support level at around .28/.30c.

Will be good to get on board at this price I reckon. Looks like it has some great projects.

 

[YOUNG_TRADER]

All CBH holders who were unfortunate enough to get caught with their pants down (the recent correction) do not fret,

As predicted Zinc stock piles have been decreasing at what is a near linear alarming rate, as a result the Zinc Spot price has been moving up strongly, well above the $1.50 mark to around $1.55 - $1.60

This company is so undervalued on its fundamentals its not even funny,

With well over 15 years mine life at Endeavour with the recent Trikao acquisition increasing that to probably 20+ years, as well as BFS due for Sulphur Springs and development of the Broken Hill CML7 'Rasp Mine' this company has big things set,

06/07 Will be the cash generation year, Analysts including Patersons, Hartleys and even Commsec place CBH to earn 14cps in 07 and 25cps in 08 which puts it currently on less than 3x PER of 07 and 1.5x PER of 08

In 2-3 years this will be the next OXR!!!!!

 

[porkpie324]

Young trader, i certainly hope your right, i managed to sell out of oxr close to its top (pure luck), since then have been accumalating cbh,porkpie

 

[YOUNG_TRADER]

Keep the faith my friend,

Also CBH holds 5.8% of PDZ, funny how they didn't mention that in thier latest presentation, Once PDZ's Prarie Downs project gets large enough what do you think CBH will do? Gobble Gobble Gobble

This company is very focused on Long Term Growth,

Currently it produces Zinc, Silver, Lead (Gold soon with TKR acquisition)

Sulphur Springs will add Copper,

And Constance JV adds Iron Ore,

As you can see it wants to become a diversified player!

 

[greentea5]

Hi guys,

I am sort of new to trading anyway. i manage to be lucky to dip some of my saving into the resources sector last year during the correction.

Where do you guys get all these news anyway? I dont seem to know where to read about these news....then again I bought some $3k worth of CBH (probably not a lot to u guys) not long ago....

I was thinkin, (properly wrong impression) with company of this size like CBH, would not it be an attractive target for other big player to takeover?

Like to heard some thoughts.

:

Cheers.

 

[YOUNG_TRADER]

Now would you look at that, an increase in reserves at its Broken Hill CML7 'Rasp Mine' gee wiz who would have thought and the stock begins to rise!



Now just wait for the markets reaction when Sulphur Springs BFS is released!!!!!!!! Copper + Zinc should net huge returns, wait and see

 

[YOUNG_TRADER]

I didn't realise that Sulphur Springs was going to be an open pit operation,

Thats excellent, as if they so wish they can use a higher milling/output rate, ie currently they intend to use a 1.25Mt p.a. mill, but there is nothing stopping them from using a 2Mtp.a mill and so on as unlike underground operations, open cut are muc more simple,

Anyway 10Mt @ 3.5% Zn + 1.4% Cu

At a mining rate of 1.25 Mt p.a. = 43,750 t's Zn + 17,500 t's p.a. Cu

Now this Qtrly will be very important in showing how far recovery at Endeavour has come along, hopefully will be back above 250kt of Ore for the Qtr,

Once Endeavour gets back to its 1M t p.a. - 1.4 Mt p.a. operation = 87,000t's - 120,000t's Zinc p.a.

 

[michael_selway]

I didn't realise that Sulphur Springs was going to be an open pit operation,

Thats excellent, as if they so wish they can use a higher milling/output rate, ie currently they intend to use a 1.25Mt p.a. mill, but there is nothing stopping them from using a 2Mtp.a mill and so on as unlike underground operations, open cut are muc more simple,

Anyway 10Mt @ 3.5% Zn + 1.4% Cu

At a mining rate of 1.25 Mt p.a. = 43,750 t's Zn + 17,500 t's p.a. Cu

Now this Qtrly will be very important in showing how far recovery at Endeavour has come along, hopefully will be back above 250kt of Ore for the Qtr,

Once Endeavour gets back to its 1M t p.a. - 1.4 Mt p.a. operation = 87,000t's - 120,000t's Zinc p.a.

yep once their endeavor is on track things will fly for them

thx

MS