CDS - Comdek Limited

looks like Hogan's have just put out a buy recomendation on CDS, they also talked it up in an article in the West Australian Sunday Times.

this may explain the build up in buying action on Friday, certainly one to keep an eye on at the moment given the market fundamentals for coal.

in a further boost to the CDS's up and coming profile the following article was printed in today's Australian Pure Speculation column, on top of Hogan's buy recomendation and write up in Perth's Sunday Times.

Coal prices

AND nothing seems likely to stand in the way of coal prices. Floods in Australia, bottlenecks in Indonesia and China's dwindling export trade are combining to put the squeeze on supply. Indian demand for thermal coal imports is predicted to soar. Goldman Sachs JB Were notes that India is planning several "ultra-mega" coal-fired power plants to use foreign coal and these will add 100,000 megawatts to the grid by 2012.

South Africa and China have been experiencing brownouts, load shedding and other euphemisms for power cuts due to coal supply disruptions and inadequate capacity.

All this means there is only one way for prices to go and Goldman Sachs' three-year forward price assumption has been lifted from $US87/tonne to $US100. No surprise then that Comdek caught our eye this week. Comdek is still listed on the industrial board due to roots in the satellite communications business and was retrieved from the administrators by a Perth group wanting a vehicle for its energy strategies. The company is associated with Perth law firm Price Sierakowski (which has been involved in a number of mining IPOs) and Ventnor Capital (one partner there being Richard Monti, who worked at Anaconda Nickel and then helped Andrew Forrest put together the tenement package for Fortescue Metals Group).

Comdek last November acquired 70 per cent of coal projects in the Waterburg region of South Africa. Sixty-five per cent of the 415 million inferred resource is thermal coal - and the power utility Eskom is building a 4300MW coal-fired station in the area.

Now Comdek has bought two coal projects in Tasmania. The resource is pre-JORC but is estimated at up to 22 million tonnes of thermal coal with potential for exploration upside. And it's right beside a railway line.

The then BHP explored there in 1981-83 when there were plans for a coal-fired power station at the Conara rail junction, but in 1983 the Tasmanian government decided it was a better idea to go with oil as the feedstock.

Comdek is looking at raising capital through a placement within three months, along with a name change and a move to the mining board.

Hi

Why is it when I research CDS in comsec, it says "Business Description
Comdek Ltd (CDS) is engaged in supplying of broadband satellite data. The company has four business units: Comdek Satellite Communications, Comdek Computers, VianetAIP and eSat Pty Ltd (eSat). "

I thought it's a coal company?
Anyway, did someone say there could be a name change? So what happens if you hold CDS and the name is changed to something else, do you still own it?

Looks like coal prices are going up, my BHP and commodity insiders tell me coal will probably go to $300 above the current price due to shortage and demand from China, flood in Queensland etc.

Because that is what they used to do, and still have some interests in.

I'm always a little suspicious on these type of companies where they've totally changed their business focus, however I do have to give CDS some benefit of the doubt with negotiation of some good prospective coal projects.

Playing a bit of 'range tennis' right now between 14-15c.. Although sell side beginning to weaken (in market depth), which may indicate another move to 16c, or beyond. Volume isn't strong, but still a fair bit of open interest.

Doesnt the above article indicate that they havent so much changed their focus as been bought out as a shelf or shell company or whatever it is?

Any comments from anyone on where CDS are up to and view going forward? They appear to have some fairly nice coal options in Tas and Sth Africa. Fair few shares on offer. M/Cap about $100m at the moment. Supply deal with Eskom in SA so if they get SA reserve approval - could see a bit of momentum.

Does anyone have any info on this one, i.e. how far they would be away from getting federal approval. As far as I read it looks like 2q 08 which must mean any time soon?

Hello to all holders


Does anyone have any idea, when the South African Reserve Bank is set to have the meeting that will decide if we can buy into the mines?
And how long after this meeting has taken place do we get results?
The way I see it (and I may be wrong) without the approval we have zip!
There has been talk on one thread that if we miss out then we can sell to China but if we don’t get the approval does not this mean we have no access to the coal we are after?

Thanks in advance.

lesue said:

Hello to all holders


Does anyone have any idea, when the South African Reserve Bank is set to have the meeting that will decide if we can buy into the mines?
And how long after this meeting has taken place do we get results?
The way I see it (and I may be wrong) without the approval we have zip!
There has been talk on one thread that if we miss out then we can sell to China but if we don’t get the approval does not this mean we have no access to the coal we are after?

Thanks in advance.

Click to expand...

RISKS
The major risk associated with Comdek is the RBSA’s decision regarding Comdek’s acquisition of Isicebi and entering into a JV with Lukale, to acquire an interest in, and to farm in to the three coal licences held by Lukale, being Lisbon, Zoetfontein and Koert Luow Zyn Pan. All documentation requested by the RBSA has been sent and the process of seeking this approval is progressing. Additionally, Comdek’s acquisition of EIL is subject to EIL being granted the two coal projects in Tasmania, being Woodbury and Bonnie’s Tier.

thx

MS

http://www.comdek.com.au/images/stories/announcements2008/cip_comdek.pdf

Comdek in Trading Halt awaiting announcement relating to acquisition.

Hopefully this is the SARB non-objection to the our JV in Waterberg.

EGM held today

Taken from Stured (go cds go) on HC

some ponts from meeting

all sounded very positive ,
CDS talking directely to the S/ african bank re approval , so it sounds like sign off is not far away

they have 3 drill rigs ready , staff ready to go in and start work

they have talked to all the farmers on there land and have approvals from them to go in and start drilling ,

drilling to start around august , september

scott mentioned that in his opinion CDS would have no problem raising money at the moment due to the responce he has had over the last couple of weeks since the presentation at the BBY confrence

CDS is looking for a MD to take to company to product and has a short list of 3 possibles

CDS being compaired to coal of africa , riversdale

escom has moved main power line off CDS land to next door properties

esco would look at building a new power station next door to cds land if the resource is big enough

capital raising will go to the big players , not smaller share holders

Fingers crossed all.

hmmm......I think CDS holders have been duped and the SA deal ain't going to happen.......

Nice first post.

Any reasoning to back up that statement?

Have you called the company and asked questions?

Agreed today wasn't the SARB announcement but never-the-less it was still a positive one.

CDS is at the year high of 19.5 (up 22%)

SARB sign-off (mere formality) must very either very close or completed.

Tassie deals finally sinking in for the great buys they were.

Well done to the holders who stayed strong.

Still a long way to go...never know with this 'agreements' that are a 'done deals'. I hold too in anticipation of a imminent announcement and today's move to a new yearly high was promising.

Chart looks good also...go you good thinG!!

CDS just announced trading halt regarding it's South African dealings.

Is this the long awaited SARB approval?

Good luck to all the holders..

excellent news today for CDS with the SARB approving their South African coal aquisition, this approval will be just the beginning of positive news out of CDS with a large resource upgrade expected shortly to increase on the 400 million plus coking/thermal coal deposit.

mick2006 said:

excellent news today for CDS with the SARB approving their South African coal aquisition, this approval will be just the beginning of positive news out of CDS with a large resource upgrade expected shortly to increase on the 400 million plus coking/thermal coal deposit.

Click to expand...

Well done Mick!

CDS are targetting a billion tonnes at SA alone.

Add upgrades to Tas and we'll be looking at 1.5 billion

At a dollar per tonne I'll let you do the math.

I would be expecting upgrade very, very soon Historical data from BHP should suffice.

Great news...resource upgrade next on the agenda, does anyone here have an idea of when we can expect this?

CDS has previously stated that the resource upgrade would be done before the end of the 2nd quarter, so we should hear something in the next two weeks, the good thing for CDS is that they are using historical drilling results so there will be no lab delays.

Good luck guys. I still do not understand how a former marketing company got there hands on a 1.5b tonne coal resource. Also think hard if you are thinking of this as a long -term holder rather than a shorter-term trade. South Africa is on a knife edge with tens of millions of refugees, political instability and nationalist characters like Zuma trying to attain the leadership.

For those who have not been to northern Transvaal (not sure what that region is called now - my apologies), that is where ESKOM built a multitude of coal powered electricity generators. They line the sky around Middelburg. So any thermal coal resource in the Waterberg region will be very well situated to feed those stations.

Anyway all sounds good for the moment but I know the explosive tensions simmering away in the region and you only have to look north of the border to see what eventually happens when yesterday's freedom fighters do not get the opportunity today that they were promised for their sacrifices.

Just my opinion off course and a risk of investing in Africa.