CMR - Compass Resources

[mrWoodo]

ASX Announcement

"Significant Uranium Intercepts recorded at Browns East Prospect"

Will hopefully keep momentum up - Gotta love how companies put announcements out at 9:59 am

 

[mmmmining]

ASX Announcement

"Significant Uranium Intercepts recorded at Browns East Prospect"

Will hopefully keep momentum up - Gotta love how companies put announcements out at 9:59 am

The uranium story about this stock is often overshadowed by the Cu/Ni/Zn/Pb/Co deposits.

The company has 14mlb uranium resources already. But the company is targeting 50mlb resources which is very likely because of inclusive old Rum Jungle uranium mine.

Still believe CMR will be the fifth uranium producer here in three years, ahead of any other uranium hopeful.

 

[mmmmining]

I Quote from Gurgler in the thread of Uranium, a Raging Bull :

China National Nuclear Corp's English website doesn't mention anything about it so we'll have to trust the journalists at the local Xinhua press agency to report that the state controlled company has signed a strategic cooperation agreement with Sinosteel Corp to "jointly invest and explore overseas for uranium resources".
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Comments:
I guess CMR's uranium asset is the prime target for the Chinese. Potentially 50mlb is not small.

I trust CMR would sell it too cheap to the Chinese. The management team is very capable. Let's see.

 

[mmmmining]

It is funny there is not much interests for this uranium play. This stock is at all time high, up about 25% in two weeks.

As a near-term producer, if they can find 50mlb uranium, The uranium asset will worth anywhere between $500m ($10/lb resource), and over $1.5b (by takeover target UUU.V).

Another overlooked factor is all infrastructure will be there when they want to produce yellowcake through the copper-oxide project!

A company with 125m share, plus 6.5m unlisted options, with $52m in the bank, it will possibly value the uranium project at $3.5 to $10 alone.


To summary, CMR is a near-term producer with exploration upside for 50mlb.

 

[resourceboom]

CMR has oxides starting this year, massive sulphides feasability plan starting, and targeting 100MP of uranium. Plenty to look forward to.

 

[mmmmining]

CMR has oxides starting this year, massive sulphides feasability plan starting, and targeting 100MP of uranium. Plenty to look forward to.

You are right, they are actually targeting 100mlb uranium. I am bit of conservative, take 50% haircut.

Anyway, it is a seriously overlooked uranium play...

 

[Halba]

this looks a bit hyped up. can't see much going for it. its u rum jungle is very small

claims of 100mil pound uranium, well everybody is claiming that these days...i would like to seem some evidence of this

i really don't buy the $10/ev lb argument i mean if BHP was valued like that olympic dam would be worth $100bn, isn't this pricey?

 

[mmmmining]

claims of 100mil pound uranium, well everybody is claiming that these days...i would like to seem some evidence of this

Currently CMR has 18Mt (indicated and inferred) contains 14.5Mlbs U3O8, and they have many other prespects for ore grade mineralization for follow up, such as Kylie, Brown East, RJCS, RJ East, MT Minza. 100mlb is a bit tough without acquisition. But 50mlb is highly possible. The latest intercepts at Browns East is a good indicator.

I can bet that CMR will be the fifth operational uranium producer in Australia. The Mt Fitch scoping study is due soon, and BFS is next, a potential near-term producer, most importantly, they are in NT

i really don't buy the $10/ev lb argument i mean if BHP was valued like that olympic dam would be worth $100bn, isn't this pricey?

The market don't need you to buy $10/ev lb argument. You have to ask yourself what is the EV/lb for SMM, AGS, EME, PDN, .....

By the way, at $10/lb, the Olympic dam's uranium "only" would be worth $40bn, plus gold and copper, $100bn is not far off. But I believe there is a different valuation method for the massive deposit because the possible oversupply situation. Near 40% of world economic recoverable resources in one mighty deposit!

 

[speves]

this chart tends to indicate that CMR trades in a set bandwidth. Indications are that the next upward leg is due and should climb to $6.7 ish if it stays true to form. I am Interested to hear other opinions on this as I am planning to buy back in. .......I have had some success trading this stock within this bandwidth, the fundementals remain solid.......thoughts?

 

[michael_selway]

The uranium story about this stock is often overshadowed by the Cu/Ni/Zn/Pb/Co deposits.

The company has 14mlb uranium resources already. But the company is targeting 50mlb resources which is very likely because of inclusive old Rum Jungle uranium mine.

Still believe CMR will be the fifth uranium producer here in three years, ahead of any other uranium hopeful.

who are the other 4 uranium producers?

thx

MS

 

[mmmmining]

who are the other 4 uranium producers?

thx

MS

Ranger by ERA
Olympic Dam by BHP
Beverley by General Atomics of USA
Honeymoon by SXR.TO (not running yet, but has the mining license)

Cheers

 

[Sean K]

i really don't buy the $10/ev lb argument i mean if BHP was valued like that olympic dam would be worth $100bn, isn't this pricey?

Noting other comments about OD, and its value, I am considering that BHP might be the best bet for a good U play at the moment....Or, if I was private equity, I would be seriously thinking about buying BHP and then spinning off the bits to unlock it's true value.....Maybe.

CMR having an awesone run. Well done to long term holders......Seems all U players with a decent resource will do well shortly...

 

[michael_selway]

Ranger by ERA
Olympic Dam by BHP
Beverley by General Atomics of USA
Honeymoon by SXR.TO (not running yet, but has the mining license)

Cheers

ok thx, btw i was looking at CMR's past annoucement headings, it appears many have "chinese" or equivalent. Do they have contracts with the Chinese like UNX?

Not sure but do u think CMR will turn out like FMG? i.e. not profitable yet, but hugh potential soon, thus FMG's stella run to date?

thx

MS

 

[michael_selway]

 

[mmmmining]

ok thx, btw i was looking at CMR's past annoucement headings, it appears many have "chinese" or equivalent. Do they have contracts with the Chinese like UNX?

Not sure but do u think CMR will turn out like FMG? i.e. not profitable yet, but hugh potential soon, thus FMG's stella run to date?

thx

MS

Michael,

Go to compass' website, start with the latest company presentation, and then the broker reports, and then the qrt reports....

It will make money this year or next the latest. Then the uranium project, and the sulfate project...

Good management team too.

 

[michael_selway]

Michael,

Go to compass' website, start with the latest company presentation, and then the broker reports, and then the qrt reports....

It will make money this year or next the latest. Then the uranium project, and the sulfate project...

Good management team too.

Ok thanks, its also in the ASX 200!

thx

MS

 

[somebodyhere]

Strong Buy recommendation in the Huntley's report

 

[thierry]

Article in Forbes..

http://www.forbes.com/business/feeds/afx/2007/05/02/afx3675479.html

HONG KONG (XFN-ASIA) - Hunan Nonferrous Metals Corp Ltd said it will take a 50 pct stake in each of the three joint ventures it plans to set up with Australia's Compass Resources NL (CMR).

Hunan Nonferrous said in a statement it expects to spend about 83 mln aud to form the oxide joint venture and a regional exploration venture with CMR.

It will make further investment in a third joint venture, a sulphide company, it said.

The actual investment will depend on the results of a feasibilty study on the company, it added.

The joint ventures are being established for the development of oxide and sulphide resources of the CMR tenements, the company said.

It said the formal establishment of the new companies may take 'several months' pending further regulatory procedures.

However, Hunan said it has agreed to advance 72 mln aud to CMR to allow the Australian partner to complete the construction of an oxide plant.

The plant is expected to begin operations in September or October, it said.

(1 usd = 1.21 aud)

leonora.walet@xfn.com

 

[PoINT5]

what is wrong with this stock, is it the most unloved one in the bunch ? have huntleys got it wrong or is the market aware of something that huntleys isnt ? is this a buying op were seeing atm.

 

[reece55]

what is wrong with this stock, is it the most unloved one in the bunch ? have huntleys got it wrong or is the market aware of something that huntleys isnt ? is this a buying op were seeing atm.

Point5
Doesn't look like a buying opportunity to me - this stock looks to be in a bit of strife......

We've broken that support line of 4.70ish now, which will prove to be resistance in the future.

IMO, the chart says it all - this stock is super weak at the moment, regardless of what Huntley's says, money is flowing out of here, not in....

Cheers