CGM - Cougar Metals

[surfingman]

Cougar Metals CGM
Ordinary Shares 65 417 903
Fully Diluted Shares 83 545 503 Ex price 25 & 30 Cents
Market Cap @ 30 Cents = 25 million (Includes Options)
Market Cap @ 40 Cents = 33.5 million (Includes Options)
Cash 2,976 Million
Website: http://www.cougarmetals.com.au/

This stock is a speculative buy but i like the fundamentals of it.
_________________________________________________

Pyke Hill Project WA

Drilling results at hand:
Of the 44 drillholes, a total of 20 holes contained high-grade values exceeding 1.3% Ni. A further 13 holes contained grades exceeding 1.0% Ni. Only 11 holes had values below 1.0% Ni, with these determining the lateral limits of mineralisation on several of the lines. The cobalt values in many of the holes were relatively high, adding substantially to the value within the high-grade mineralised intervals. The single highest assay returned from this program over a 1m interval was 3.21% for nickel and was 0.882% for cobalt.


Announcement dated 21/05/07

A 80 hole drill program has been completed awaiting results; (you would think the results are very good) as there is now another drill program, which will be concluded within 4 weeks, which will be used to form a 3rd party JORC compliant resource estimate.

Holds an inferred 2.36 million tones the project has 3 options:
1/will be sold once JORC estimate is complete
2/processing agreement will be made with the plant, which is the Murrin Murrin Joint Venture 40km away.
3/Cougar also intends to investigate whether it should undertake testwork to assess the likelihood of lateritic nickel-cobalt ore at the Pyke Hill Project being amenable to heap leaching.

Okay the information which could make this a great company:
The Toomey project was sold by Cougar to the Murrin Murrin JV in 2005 for $6.5 million with an indicated resource core of 1.04 million tonnes when nickel price was $US 12,500 tone now its around $US 50 000.

What’s that worth to sell for cash?
There is now 2.36 million tone inferred 2.25 x the amount of the Toomey project.
The Nick price is 4 x the amount of the Toomey project.

If the size is as inferred and nickel price is still high which it looks to be for some time (http://www.kitcometals.com/charts/nickel_historical.html).

The project could possibly sell for up to $59 million
Plus Cash $2,976 Million
Divided by fully diluted shares 83 545 503
A target share price of .74 cents per share in cash only

Not to mention the properties in Brazil:

High Grade Gold Deposits in Brazil
Porteira Prospect
3rd Quarter 2006 3 holes were drilled:
0.30m @ 47.8g/t Au & 12.6g/t Ag from 130.5m (POD004).
0.90m @ 64.5g/t Au & 4.8g/t Ag from 162.07m (POD005).
1.22m @ 15.1g/t Au, 6.8g/t Ag & 1.35% Cu from 100.08m (POD006).

Latest Drilling Results Early 2007:
0.18m @ 72.6g/t Au & 24.0g/t Ag from 168.40m (POD009).
0.60m @ 40.8g/t Au & 8.6g/t Ag from 148.10m (POD010).
0.40m @ 20.8g/t Au & 4.6g/t Ag from 182.45m (POD012).
0.44m @ 47.7g/t Au & 6.9g/t Ag from 176.36m (POD014).
4.00m @ 13.8g/t Au & 6.6g/t Ag from 16m (PORC047 - composite).
Further Drilling will take place 4th quarter 2007

Queiroz Prospect
0.20m @ 16.4g/t Au & 7.5g/t Ag from 56.61m (QZD005).
0.22m @ 7.9g/t Au & 28.7g/t Ag from 62.67m (QZD006).
0.26m @ 61.0g/t Au & 143g/t Ag from 77.06m (QZD007).
0.30m @ 58.1g/t Au, 88.6g/t Ag, 0.46% Cu & 2.5% Zn from 52.05m (QZD008).
0.40m @ 26.3g/t Au & 55.1g/t Ag from 78.5m (QZD009).
0.40m @ 11.3g/t Au & 7.7g/t Ag from 76.1m (QZD013).
Further Drilling will take place 4th quarter 2007

Estrela Prospect
4m @ 10.8g/t Au &12.9g/t Ag from 28m (ESRC001 - composite)
4m @ 12.5g/t Au & 11.3g/t Ag from 51m (ESRC002) including
-1m @ 41.1g/t Au & 33.2g/t Ag from 53m plus
-5m @ 25.9g/t Au & 17.0g/t Ag from 65m including
-3m @ 41.1g/t Au & 26.6g/t Ag from 66m.
1m @ 34.1g/t Au & 19.5g/t Ag from 51m (ESRC004).
1m @ 59.0g/t Au & 96.2g/t Ag from 60m (ESRC005) plus
-3m @ 9.6g/t Au & 9.3g/t Ag from 66m including
-1m @ 21.8g/t Au & 17.6g/t Ag from 68m.

Uniao Prospect
4.06m @ 12.7g/t Au &11.8g/t Ag from 42.1m (UND008) including
-0.90m @ 31.0g/t Au & 28.5g/t Ag from 42.1m plus
-9.06m @ 5.0g/t Au & 34.2g/t Ag from 50.0m including
-2.09m @ 14.7g/t Au & 116.0g/t Ag from 50.0m plus
-0.96m @ 16.0g/t Au & 46.1g/t Ag from 100.25m.
1.20m @ 36.3g/t Au & 245.0g/t Ag from 94.3m (UND016).
3.61m @ 5.32g/t Au & 63.3g/t Ag from 30.15m (UND017) plus
-1.14m @ 11.2g/t Au & 46.4g/t Ag from 56.73m.
0.64m @ 21.8g/t Au & 185.0g/t Ag from 42.41m (UND018).
2.0m @ 14.7g/t Au & 51.0g/t Ag from 25.0m (UNRC028) including
-1.0m @ 28.0g/t Au & 100g/t Ag from 26.0m.



Its my research please do you own and post what you think....

 

[surfingman]

With the option expiration date 3 weeks away, I'm recommending my clients to sell Nickel call options $60,000 Jun07 contract.
Premium received is USD1,050/lot.

I took this from the Nickel thread a great sign for cougar.

And a map of the locations of the areas listed in my above post.

And the inferred resource of 2.36 million tones, Strike length of 1,200m and width of 300m. Potential to increase strike length by up to 1,100m. Strategy is to fast-track the development of the project to position it ready for sale in mid to late 2007.

 

[surfingman]

JORC Resource Due out by the end of the July:

Inferred Resource of 2.36 million tonnes grading 1.39% Ni & 0.085% Co (1.2%
Ni cut-off) from previous drill results.

Recently infill drilled over 7500m results highest grades 3.28% Ni and 1.24% Co with an extension of strike from 1200m to 2000m.

Also will be testing for heap leaching to become a producer, not looking to sell the project off.

 

[bvbfan]

JORC Nickel and Cobalt resource out finally

Announcment

$3billion value for resource even at 1% that values the resource at $30million.

Current market cap is 80million shares at 20c = $16million.

Upside is pretty good IMO

I hold a good parcel

 

[moses]

Wow! CGM is really flying, now up 67% with only 6 lines left in the sell queue!

Ann...

Cougar Metals NL (ASX code: CGM) is pleased to announce the completion of a new JORC compliant Measured & Indicated Resource estimate for the nickel-cobalt laterite deposit at the Pyke Hill Nickel Project in Western Australia:
9.234MT @ 1.05% Ni & 0.07% Co for 97,000 contained Ni tonnes (0.8% Ni cut-off) containing a high-grade core of 2.979MT @ 1.21% Ni & 0.08% Co for 36,000 contained Ni tonnes (1.1% Ni cut-off).

 

[UPKA]

this one should be on teh potential breakout list, like said even at 1% of the total inferred resources, its market cap should be at $30m, currently sitting on $18m. it's only a matter of time now really.

 

[jama_kj]

Massive find and should run further either today or in the next few days as people awaken to this resource.

 

[zt3000]

"Cougar Metals NL retracts the reference to the in-ground value as it accepts ASX’s assertion that the quoting of in-ground values is premature in that the quoted in-ground value does not take into account further evaluation and testwork that will need to be undertaken to determine the economic recoverability of the mineral resource."

Any ideas as to what this means?

 

[jonojpsg]

"Cougar Metals NL retracts the reference to the in-ground value as it accepts ASX’s assertion that the quoting of in-ground values is premature in that the quoted in-ground value does not take into account further evaluation and testwork that will need to be undertaken to determine the economic recoverability of the mineral resource."

Any ideas as to what this means?

A few companies have been releasing resource estimates then slapping an in-ground value on the resource just to make it look good. People get all excited because they thnk there's $3bn value there when there might be only 10% of that which actually makes it to the company and over an extended period of time too, eg 10 years? Basically just the ASX saying stop ramping your stock.

 

[lazyfish]

Hi Guys,

I went for the AMEC's Investing in Mining Stocks Forum today. Some updates on Cougar.

1) At the moment company has $900,000 cash.

ALTA FLORESTA (gold)

2) Only 40% tenements are granted in Brazil, the others are pending an (4th) appeal from a competitor. As the appeal was lodged with Brazil's mines minister (who got involved in a scandal and resigned), it is uncertain how long it would take for these tenements to be granted and when they can start drilling. But MD is optimistic about the outcomes of the appeal.

3) Though the current drilling returned high grades of AU, none of the targets are worth drilling because of the short strike length. Company is waiting of the grant of main tenements to continue drilling.

PYKE HILL (nickel)

4) Company is considering heap leach operation vs a direct sale of the project, like Tommey Hill. It is not likely to spin off a Nickel company.

DRILLING IN BRAZIL

5) Company has (wholly owned) 1 diamond and 1 RC rigs in Brazil. Company is looking for opportunities to do some drilling contract during this down time. When asked if there is any plans to increase the number of rigs MD said yes.

OTHER INFORMATION

6) MD says all the directors are major shareholders, MD is trying not to dilute the shares by increasing earnings through drilling contracts in Brazil, which is in high demand. MD's salary is 160k, well below industrial average, and all directors travel to Brazil on economy class (saves $4000).

Seems like they had a big of tough luck in Brazil, certain it made my watch list though. Apologies if I made any mistake (still a noob

 

[jama_kj]

wow thanks for that. this is IMO a very fundamentally strong company with a bright future and directors seem to have set a clear path for its future - as reinforced by the above info

 

[lazyfish]

(bit of analysis I did on my own please no :whip)

COUGAR METALS NL

Managing Director Randal was the first presenter on the AMEC seminar held on 25th Aug 2007. He was arguably the most inexperienced presenter of the six that presented. Despite that I developed some interested in Cougar and did a bit of research on my own.

Cougar has 2 main projects, namely the Alta Floresta Project (gold) in Brazil, and the Pyke Hill Project (Nickel) in Western Australia.
Alta Floresta Project

During the AMEC seminar Randal talked at length about the gold prospects in Brazil. His ‘gold fever’ is understandable, as the assay results have been great so far. However, Randal was also very frank and admitted that none of the current targets are worth drilling because of the short strike length. However, he did point out that the most prospective tenements are yet to be granted. Cougar is fighting another competitor who has submitted their 4th and last appeal to the Brazilian minister of mines, who unfortunately resigned in a recent scandal.

Pyke Hill Project

Cougar’s recent ann on 23rd Aug 2007 stated that the Pyke Hill Project had an Measured & Indicated resource of

9.234MT @ 1.05% Ni & 0.07% Co (@0.8% Ni cut-off)

In 2005, Cougar sold its Toomey Hill project to Minara Resources Ltd for 4.55M. Cougar only had 70% interest so the whole project should be worth 6.5M. The resource of Toomey Hill is

4.22 MT Ni @ 1.08% and 0.078% Co (@ 0.8% Ni cut-off)

Both deposits are laterite. The resource statements are using the same 0.8% Ni cutoff in calculation. Ni price has, over the course of 2 years, more than doubled. My simple calculation says that Pyke Hill should fetch at least 4 times the sale value of Toomey Hills from a direct sale, which turns out to be at least 26 Million. Cougar is currently considering developing the project itself, or selling the deposit directly.

Drilling Contract Opportunities in Brazil

Cougar has 1 DC rig and 1 diamond rig in Brazil. Randal said that there is lots of drilling contract opportunities in Brazil. In fact, near Cougar’s tenements in Brazil there are 3 Canadian companies conducting exploration activities. Cougar has reported revenue of $170,000 from 3 weeks of drilling activities. Randal also confessed (when asked) that there are plans to increase the number of rigs in Brazil to capture the demand for drilling contracts. If the 2 current rigs are able to operate 10 3 week drilling activities for a full year, Cougar would be able to generate 1M from that alone. Randal is positive that Cougar will be cash neutral in short term through contracting drilling in Brazil. Actually one of the first things Randal said on AMEC is that "I am from a drilling background" or something similar.

Snap shot of Cougar Metals NL

Fully diluted shares: 82,454,503 @ 0.185 (on 28th Aug 2007) = 15.25Mil
Cash = 950,000 (as of 25th Aug 2007)
Pyke Hill Project = 26M
Alta Floresta = ?
Drilling Contracts = ?
Other Projects = ?

Other Interesting Facts
Cougar is conservative in spending. Their office is in South Guildford (about 10km from downtown perth). All directors travel to Brazil on Economy Class.
Randal's salary is 160k.
All Directors are major share holders.

 

[doogie_goes_off]

Wow, what a dead thread - Today these guys announced results up to 800g/t Gold from their project in Brazil. Also they have their own drill rigs and drilling contracts. A great little spec for my .

DYOR and you may see good value here.

 

[doogie_goes_off]

Full announcement below, big numbers, early days.

http://imagesignal.comsec.com.au/asxdata/20100910/pdf/01096906.pdf

 

[Beaver82]

Looks like this stock has come back to life. Huge rise in SP these past few days. Last Quarterly report must have been read a bit late by investors.

The company owns 2 drill businesses, one operating in Brazil and the other in Uruguay. Between the 2 they achieved revenue os over $5.3 million last quarter up from $4.5 m the quarter before. Shows the business is growing and company states that it will increase further in the future. Its also good to see the company owns the drill rigs they are using but also has hired and extra 4 rigs to keep up with the demand.

The company has also started trial mining at their Ze Vermelho project with a targeted mining rate of 40 tonnes per day over the past three months which equates to about 3,600 t of ROM being processed last 3 months compared to 1,139 t of ROM in the March quarter which yeilded the company over US$1m in gold sales, so i would expect this quater to be more then last. Im not looking for the 3,600t that was targeted but more or less around the 2,000t mark which would show good progress and a double in gold revenue.

I also note that expenses were more last quarter as $1.7 million debt was paid off and minning equipment was bought so they would no longer have to waste money hiring the equipment for there gold operations so lower costs this quarter should be seen as a result and higher profit margins.

All of the above should point to CGM bringing home a nice little Profit again this quarter and show investors that the current operations are self funded and profitable.

For a company with such a small market cap it is making a very nice profit of $2 million going by last quarter and expect that to increase to about $3 million this quater due to an increase in gold production and a reduction in operating expenses as we now do not pay for the hiring of the equipment used for gold production.

Add last quarters profit of worst case senario of $2 million to the $4 million already made for the previous 9 months and you have a comapany with a market cap of $18 million making $6 million profit a year trading at a PE RATIO of 6.

 

[surfingman]

Looks like this stock has come back to life. Huge rise in SP these past few days. Last Quarterly report must have been read a bit late by investors.

The company owns 2 drill businesses, one operating in Brazil and the other in Uruguay. Between the 2 they achieved revenue os over $5.3 million last quarter up from $4.5 m the quarter before. Shows the business is growing and company states that it will increase further in the future. Its also good to see the company owns the drill rigs they are using but also has hired and extra 4 rigs to keep up with the demand.

The company has also started trial mining at their Ze Vermelho project with a targeted mining rate of 40 tonnes per day over the past three months which equates to about 3,600 t of ROM being processed last 3 months compared to 1,139 t of ROM in the March quarter which yeilded the company over US$1m in gold sales, so i would expect this quater to be more then last. Im not looking for the 3,600t that was targeted but more or less around the 2,000t mark which would show good progress and a double in gold revenue.

I also note that expenses were more last quarter as $1.7 million debt was paid off and minning equipment was bought so they would no longer have to waste money hiring the equipment for there gold operations so lower costs this quarter should be seen as a result and higher profit margins.

All of the above should point to CGM bringing home a nice little Profit again this quarter and show investors that the current operations are self funded and profitable.

For a company with such a small market cap it is making a very nice profit of $2 million going by last quarter and expect that to increase to about $3 million this quater due to an increase in gold production and a reduction in operating expenses as we now do not pay for the hiring of the equipment used for gold production.

Add last quarters profit of worst case senario of $2 million to the $4 million already made for the previous 9 months and you have a comapany with a market cap of $18 million making $6 million profit a year trading at a PE RATIO of 6.

I got back in on this 2 weeks ago after watching it drop for 2-3 years, but I am confident that the company will continue to post profit growth due to the drilling and more importantly the gold business.

Plenty of volume last week and its been building for a number of weeks setting higher highs.

 

[mjp]

lovely big cup and handle going back to 2009

just waiting for the quarterly and drilling and assay results

undervalued on current profit making drilling business alone, and very high grade gold veins providing substantial additional cashflow and big upside from multiple gold tenements

way undervalued

cup and handle target circa 18cps from current 5.7cps

 

[mjp]

Re: CGM - Cougar Metals ann out

thought we might be a week or two away from qtly ann but one out now

good ann

drilling business going strong - maintained revs even with two more rigs redeployed to gold exploration work on own tenements

gold sales strong on av 21.6g/t from gravity circuit only, still developing levels down mine
and cyanide circuit nearly ready

assays delayed so further news pending

 

[erichmj]

 

[Chasero]

No interest in this stock today???

People on other forums calling a "3 yr cup and handle".. which I can see.

10.5 is the resistance.

If it closes at 11c then cup and handle has been formed and it can do a huge run.

Most exciting stock on the ASX today.

Closing at 10.5c means potential retrace!!

*wary of pump and dumps* Will watch for now

I do not hold.