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CDU - Cudeco Limited

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Back to normal trading now but it looks as if the market wanted a better drill result
 
Better drill result??? Seems pretty spectacular to me. What did you have in mind?
 
SP weakness could suggest that day trader money is chasing the CQTs and ENRs of this world.
I think CDU will prove to be a sound investment...we will see
 
From http://www.miningnews.net/StoryView.asp?StoryID=62444

Curious CuDeco saga raises questions of ASX – Dryblower


Monday, 24 July 2006

DRYBLOWER has not come to praise Wayne McCrae, nor has he come to bury him like so many others. Rather, he thinks it time to ask a few questions of the chaps who charge large fees to run a stock exchange, but appear to think they can do so with limited liability.

McCrae is chairman of CuDeco, the Queensland copper explorer that traded as Australian Mining Investments until a few days ago.

He hit the headlines for the best (and the worst) of reasons after reporting a whopping copper resource from the Rocklands project near Cloncurry in northwest Queensland – followed progressively by a request for a trading halt, suspension, 10 days of mystery, re-instatement, and a share price that oscillated between $1.78 and $10 in a matter of days.

The average reader should be up to speed with the Rocklands saga, but what they are almost certainly not up to speed with is the action, of the slow-moving variety, at Australian Stock Exchange Ltd, the company that runs a public institution called the Australian Stock Exchange.

Before thinking Blower's gone barmy, the difference between ASX Ltd and ASX is critical to what happened to CuDeco, and a few other companies over the past week.

On the one hand we have a business (ASX Ltd) that makes a profit from people who use the exchange (companies and investors), and a company that fulfils (sometimes) a regulatory role with "friends" at government organisations such as the Australian Securities & Investments Commission and the Joint Ore Reserves Committee (JORC).

It is the clash between business and regulator that most interests Blower, because on the one hand we watched an organisation accept without question the original June 29 statement from Australian Mining Investments and release it to the market at 10.49am. Naturally, when someone says he's made a terrific discovery, the shares will have shot sharply higher – AMI rose from $1.78 on the day before to a close of $2.24 on the day, and then rapidly up over the next four trading days.

It was on the sixth trading day after the Rockdale announcement that the ASX morphed from being a business making a profit on every trade, to ASX the regulator that wanted the statement checked over by experts. Another eight days later and AMI resumed trading and changed its name to CuDeco.

It's the six days of pre-suspension trading that really interests Blower, who understands that staff at ASX Ltd cannot investigate every report lodged every second of the day. To do that would slow business to a crawl.

But, surely it is possible for ASX (the business) to employ sufficient staff with technical competency to check the more enthusiastic and exciting reports, especially from mineral exploration companies in the middle of the biggest boom in Australian history.

There was no winner from the Rocklands reporting fiasco. McCrae was forced to amend his June 29 report – 19 days after the event. The ASX, which has a seat on JORC, was made to look like it has all the efficiency of a government licensing department on a bad day, and JORC itself was made to look like a toothless tiger.

Blame for the mess, if there is any, lies heavily with the ASX for not fulfilling its role as regulator and worrying too much about being a business.

McCrae, if he is to be blamed with anything, is guilty of being enthusiastic for what looks to be a fabulous discovery – and in Blower's world, enthusiasm is not a crime, it's what a company chairman gets paid for.
 
edogg75 said:
Better drill result??? Seems pretty spectacular to me. What did you have in mind?
Click to expand...


Grade would appear to be falling from the original bold claim of 2.0%Cu

One hole at 0.95% and another at 0.50% - not very good at all considering the hype and the results needed to maintain the currently stretched valuation

Shows why one shouldn't 'extrapolate' hundreds of metres of strike length after drilling a few holes
 
anyone notice some interesting buying of CDU in the last half hour of trade?? Has been coming off at the end of the day last couple of days,except today.This happened just before ann on the 20th with good results,but not before ann on the 24th with ave. results.Some paid up to 2.85 before the close.Up 5% for the day.....Why.....Will be interesting to see if anything comes out tomorrow......Any thoughts????
 

My thoughts exactly ... buying has always been strong just prior to announcements. Also we have been getting 1 every 4 days:

17/7
20/7
24/7
28/7 ????? ..... Lets see!

cheers
 
Fingers crossed.

Reckon one is due.

But, has been much more stable of late, maybe good to have a few weeks of no news, let it stabilise and then impress the market as they start to reclaim the resource size they initially stated
 
And, on queue, another announcement reaffirming the Directors excitement! Nice call lads :
 
up to 3.10 in the first hour,interesting watching.... make that 3.19.... so much for stability
 
if it does its usual trick, watch for it to settle around the middle of the day, then it should pull back to low $3 maybe even break into the sub $3, then look for buying in the last hour.
 
From mining new fri 28th CuDeco chairman cashes in some chips

Friday, 28 July 2006
Michael Vaughan

HIGH-profile Cloncurry copper chaser CuDeco has increased the exploration target for its Rocklands project by 50% to more than 75 million tonnes as chairman Wayne McCrae pockets more than $2 million through the sale of options on market.

Native copper from CuDeco's Rocklands copper project

In its June quarterly report, CuDeco describes the famed Rocklands project near Cloncurry in Queensland as having an inferred resource of 25Mt at 1.6% copper within a target of 100Mt+.

When the Australian Stock Exchange forced the company to revise its initial 59Mt resource for Rocklands, the figure was downgraded to 25Mt plus an exploration target of 40-50Mt.

No qualification for the increased exploration target was offered by CuDeco, who incidentally, is now calling itself "the new force in copper" in a description reminiscent of Fortescue Metals Group.

Meanwhile in a stock exchange notice yesterday, McCrae advised he had sold 890,200 options on market between Thursday, July 20 and Monday, July 24 at an average price of $2.25 to pocket just over $2 million.

Shares of CuDeco opened at $2.55 on July 20 and closed at $2.85 on July 24, reaching a high of $3.90 in the interim period.

McCrae also advised he has exercised 3.04 million options at 20c each by paying $607,741.

He and his fellow directors were recently forced to withdraw an options package at the company's annual general meeting earlier in the month after the intervention of the Australian Securities and Investment Commission.

Shares in CuDeco were up 29c (10.47%) at $3.06 in midday trade.
 

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havingfun said:
No qualification for the increased exploration target was offered by CuDeco, who incidentally, is now calling itself "the new force in copper" in a description reminiscent of Fortescue Metals Group.
Click to expand...
apart from the description used, i think the CDU sp has reminded me of FMG's sp behaviour when its iron ore reserves first became known.

i just entered the august tipping comp with CDU. this is a 100% guess, none of that 'gut feeling' or predictions of what CDU might release next.

CDU may possibly announce further copper reserves or other good news which may send the sp upwards again. i have no clue what will happen... in fact, does anyone? but going back to FMG, it's had a lot of steep ups and downs and i think CDU could replicate this as it comes across things such as regulatory setbacks, financing issues, downgrade in quality of copper etc.

i've previously held FMG shares but have never held CDU/AUM.
 
another pretty strong day today[considering the rest of the market took a flogging],looked like it was going backwards early with no interest then hit strongly at lunch time. May be worth watching closely the next few days.Looks like a similar pattern preceding announcements.Also for those who like to day trade,great range of about 20c each day,quite easy to read.
 
cdu requested trading halt pending a release regarding drill results ..... can only be good news....
 
CDU drilling report released


size of strike looks confirmed but assays are well below 2%

THIS IS ONLY A QUICK LOOK from me and Im no expert in reading drilling reports

John
 
''The Company has employed the services of Coffey Mining a subsidiary of Coffey International Ltd as Geological Consultants.
The scope of works to be carried out by Coffey’s is to prepare to resource statement on the Rockland Group Copper Project. The statement will entail providing CuDeco with a JORC code mineral resource in the category of measured and indicated and inferred. The Mineral Resource is to be compiled on the completion of the drilling of Las Minerale and the completion of 5 deep diamond holes + 300m under the Double Oxide Prospect. The company is providing Coffey’s with continuous results of drilling on a regular basis. It is anticipated a new resource for Las Minerale, Rocklands Central and Double Oxide will be completed during September 2006.''


I dont think you'll see any significant move untill the new resource statement is released sometime in sept[as above quote from todays release] Till then should make for some great trading days....been able to pick up an extra 3000 shares per week on average since the big drop.... mind you thats only going to be of use if they come up with the goods...
 
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