I would expect the price to rise on Monday and show something running up to the first week of June. I will consider buying early next week.
I allready have a decent sized parcel in the oppies. They havnt gone much under what I paid. I like to average down my original price so if the oppies dropped to 15/16/17 I will be buying. I still feel confident on this deal going through. The quarterly report confirms that.
"CFE is pleased to advise it has commenced initial compliance with regard to the 300 million tonne indicated resource by the appointment of RSG Global as the independent geologists. CFE anticipates completion of verification by the 1 week of June 2007."
Like I said before I feel very strongly that this is a done deal. Once the deal is confirmed SP could easily jump 30/40 cents from here. See below. A past post to show the possibilities once the deal is confirmed.
CFE - Total Class Issue: 247,576,062
CFEO - Total Class Issue: 136,511,800
Chinese investor, Mr Ding Liguo, to purchase 40 million unlisted CFE Options
(“Options”)
Total shares on issue – 424, 087 862
Fully diluted market cap is
$173, 8761 023
Now if you work out the monetary value the company will receive it will be worth.
$250 million (deal with Best Decade)
$38 million once options are converted.
Additional $15 million from Mr Ding when he converts oppies
In total this is
$303 million in cash value to the company.
But out of this 303 million only
115 million will be left for the company to aquire further projects because the rest of it will be used to fund their 30% interest in the project that Best Decade aquired 70% of.
As stated in the West Australian..
“It would also leave Cape Lambert with around $100 million to invest in other projects, once outstanding options are exercised next year”
This is how I know 115 million in cash will be left for the company because you have to add the additional 15 million from Mr Dings options once converted on top of the $100 million left over from the deal with Best Decade. This would leave the company with 115 million cash in total and the 30% interest in the project is fully funded.
When you put a valuation on the company I believe the value should be the total value of the company divided by the shares
$303 million divided by the fully diluted share holding of 424, 087 862
= .714 cents per share
So once the deal is confirmed I am expect atleast around a 70-80 cents valuation on the company. I like knowing how much money I could possibily make once something is confirmed. It all depends on your confidence for the deal to go through and I am still very confident. Whether or not the SP of the company rises to the value is has in cash and assets is unknown. But I think it will.