CDU - Cudeco Limited

[Sean K]

With a CAPEX of $A150-200M and high grade ore resulting low OPEX

Sorry pj, but can you give a reference to the Capex numbers. Appologies, I haven't been following this one that close. Cheers,

 

[pjemmett]

Certainly, From todays ASX announcement titled "Appointment of Corporate Adviser"

Having released the Company’s resource upgrade announcement, Cudeco now intends to engage with a number of parties who have approached the Company with a desire to invest in the Rocklands Project. The total capital expenditure requirements at Rocklands are estimated to be between A$150m - $200m. Azure will manage a structured process to seek expressions of interest from potential investors and select a preferred party based on the CuDeco directors’ criteria for a strategic partner. It is anticipated that the Company will grant data room access to selected parties in September 2010 and that non binding offers of funding subject to due diligence will be sought during the fourth quarter, with a decision on the final binding funding package by late 2010 or early 2011.

Hope this helps..PJ

 

[adds4]

isnt it the 30mt the banks, companies and institutions look at when lending money for the mine. The 245mt is only an estimate on what COULD be there, once all drilling is complete.

 

[freebird54]

Be wary on this forum - the HC rampers will be here soon if not already

Some friends have lost lots here - I warned them.

Disc.

I have bought and am still buying a real miner this week.

I traded CDU many times for a small profit.

 

[Agentm]

Be wary on this forum - the HC rampers will be here soon if not already

Some friends have lost lots here - I warned them.

Disc.

I have bought and am still buying a real miner this week.

I traded CDU many times for a small profit.

buying a real miner is obviously a choice you have made, and well done for spotting one i say..

re your firends having "lost lots here - I warned them"

Common sense is in spite of, not as the result of education.

 

[crayfish]

Just for clarification :

JORC July 2006 - 59Mt @ 2% CuEq inferred

JORC Aug 2010

- 31Mt @ 1.24% CuEq measured (0.8% cutoff)
- 151Mt @ 0.47% CuEq measured/indicated (0.15% cutoff)
- 245Mt @ 0.42% CuEq measured/indicated/inferred (0.15% cutoff)

The resource has quadrupled in size (59Mt to 245Mt), albeit at lower %.

IMO the lower 1.24% measured figure is mainly due to JORC capping of the native-copper figures to 10% when they are in reality often 10-20%. See here
http://www.cudeco.com.au/pdf/CDUAnnounce21.10.08.pdf

Yeah its obviously disappointing that the numbers aren't higher, but a LOT of progress has been made.
Hopefully management learnt a lesson and from here on we get regular JORC updates to prevent future speculation and surprises.

My sums say that ~60Mt @ 2% Cu (inferred, 2006) is the same amount of metal as ~240Mt @ 0.5% Cu (inferred, 2010). Sure the latest/overdue inferred resource estimate has 4x the tonnage, but it also has 1/4 of the grade.

i.e. 4 years of work for NO extra metal

So does anyone think this track record means we should expect the resource (in tonnes of Cu metal in the ground) to increase considerably in the future?

 

[buysellmestuffed]

Don't know why there raising capital or seeking partners when Xstra are just up the road , they could truck it up to Mt Isa and get it processed and shipped out via rail , it's all there , and i'm pretty sure that there not releasing anymore smelters out that way .

Seems they've waited years for what, research ? They found it why not process it .

 

[blackjack]

can punters that had stop losses let me know what price they got out at
as i would like to see how many were convinved that this was a sure thing or how many were cautious

 

[Agentm]

can punters that had stop losses let me know what price they got out at
as i would like to see how many were convinved that this was a sure thing or how many were cautious

mine are the opening price of today $1.63. does that help you with your calculations?

followed cdu since day 1, and happy to have a few today..

 

[Transient]

isnt it the 30mt the banks, companies and institutions look at when lending money for the mine. The 245mt is only an estimate on what COULD be there, once all drilling is complete.

No. Both figures are "Resource", but using different cut-offs. Banks lend money on "Reserves".

They have been working on this Resource for 4 years and do not have any Reserve figures. That is very suspicious. Especially since most of their Resource is classified as either Indicated or Measured.

Since there is no Reserve, how can we tell if the grade cut-offs used are based in reality or numbers pulled from the air. How can we trust the "3 mtpa" figure?

 

[UBIQUITOUS]

No. Both figures are "Resource", but using different cut-offs. Banks lend money on "Reserves".

They have been working on this Resource for 4 years and do not have any Reserve figures. That is very suspicious. Especially since most of their Resource is classified as either Indicated or Measured.

Since there is no Reserve, how can we tell if the grade cut-offs used are based in reality or numbers pulled from the air. How can we trust the "3 mtpa" figure?

This is the key issue. How can you trust management? I had a 'near death' experience with another company where I trusted the board, but shouldn't have. I will not invest in a company where I even have the slightest doubt about the quality and integrity of management, no matter what the prospects of the company.

 

[blackjack]

Be wary on this forum - the HC rampers will be here soon if not already

Some friends have lost lots here - I warned them.

Disc.

I have bought and am still buying a real miner this week.

I traded CDU many times for a small profit.

what mine is that? as its like fishing what u have said
you put on the bait and let her loose and so now im biting

 

[financial chat]

strachan says holders of cdu should sell

It looks like another analyst has called a sell call on CDU.

Recommendation: CuDeco took anextraordinary length time to update its mineral Resource at Rocklands. Copper and gold grades reported were much lower than the marketand StockAnalysis had expected,based on drill results reported.

CuDeco had not presented long or cross sections of its ore bodies to show the geometry of its mineralisation, without which accurate estimation of tonnes and grade was difficult. The stock remains a sell at current prices.

 

[financial chat]

The ASX need to take action with the company about its apparent disregard for keeping the whole market informed.

The announcement released at 5.18pm is flagged as price sensitive but it appeared as a matter of discussion all day and last night on a number of share forum websites as well.

Additionally, the matter was reported in full in the Financial Review, but the company did not see fit to release the announcement until after the close of the market today.

In my opinion, this is a flagrant disregard for the rules of disclosure.

Does Wayne not understand rules have to be complied with if he intends to keeps his company listed?

Years ago, companies were suspended from trading for this type of breach, and remained suspended until they could provide a guarantee that they would comply with ASX regulations.

 

[Miner]

strachan says holders of cdu should sell

It looks like another analyst has called a sell call on CDU.

Recommendation: CuDeco took anextraordinary length time to update its mineral Resource at Rocklands. Copper and gold grades reported were much lower than the marketand StockAnalysis had expected,based on drill results reported.

CuDeco had not presented long or cross sections of its ore bodies to show the geometry of its mineralisation, without which accurate estimation of tonnes and grade was difficult. The stock remains a sell at current prices.

The ASX need to take action with the company about its apparent disregard for keeping the whole market informed.

The announcement released at 5.18pm is flagged as price sensitive but it appeared as a matter of discussion all day and last night on a number of share forum websites as well.

Additionally, the matter was reported in full in the Financial Review, but the company did not see fit to release the announcement until after the close of the market today.

In my opinion, this is a flagrant disregard for the rules of disclosure.

Does Wayne not understand rules have to be complied with if he intends to keeps his company listed?

Years ago, companies were suspended from trading for this type of breach, and remained suspended until they could provide a guarantee that they would comply with ASX regulations.

Hi Financial Chat

I do nto have Peter's article but what he substantiated behind his SELL call for CDU ? He got recent fame in ABC and some of the conferences recently. In not too distant ago, he used to claim as an expert in oil and gas if my memory chip is working okay. Of late he has become expert in all resources and that includes uranium, copper, gold etc . It is easy now a days with lots of disclaimers but I always test with a grain of salt.

Did you try to ask Wayne about the reason for his lack of disclosure ?

I personally think CDU has great strength because until the fall flat resource estimation it was darling for many of the investors and traders. With copper rise IMO it should do well.

It will be only matter of time to see in next 6 months scneario.

Disclaimer - DNH and do not participate in HotCopper discussion .

 

[Sean K]

The ASX need to take action with the company about its apparent disregard for keeping the whole market informed.

The announcement released at 5.18pm is flagged as price sensitive but it appeared as a matter of discussion all day and last night on a number of share forum websites as well.

Well, I don't know how the law suite against Hot Crapper could be price sensitive. Whoever decided that at ASX HQ must be a member of HC because really, how could that be material to the company. Bamboozling actually. If a company is price sensitive to some anonymous avatars saying they are crap, then they should take a very hard look at themselves.....

 

[skc]

3 months on from the big fall... CDU has risen from low of $1.63 to today's 4.64, thereby completing the mother of all gap close.

Where to next?

 

[blackjack]

3 months on from the big fall... CDU has risen from low of $1.63 to today's 4.64, thereby completing the mother of all gap close.

Where to next?

well someone certainly made money on this
didnt they
looking back things seem pretty obvious

 

[Agentm]

well someone certainly made money on this
didnt they
looking back things seem pretty obvious

guilty as charged

been following since the first day.. got a nice lot at $2 a few months back

cant say i believed the garbage $1.70 tripe.. so i cleaned up..

no intention of selling..

most hate the fact i bought in, and i get criticised for saying i bought up big, but big deal, build a bridge and get over it, i saw value where others didnt..

good luck to anyone seeing the upside like i did..

 

[Sean K]

Was the sell off today overdone?

Just on the surface of it to me it seems sentiment has gone too far the opposite direction.

Some of the figures produced, comparing it to Cadia, for example, look ok on quick glance.

Or, maybe they're stuffed?

Still just smoke and mirrors perhaps.

Hm, maybe overdone?

Would have been game to buy.

Who Dares Wins.