CMR - Compass Resources

[treefrog]

I tend to agree, at the current price it certainly seems under priced given that there are valuations in the $6+ area. Poor sentiment has driven the SP down way below an fair valuation due to disappointment over management errors. The fundamentals for the company are still in place and this will be a major producer by the end of this year so you would have to think a rebound is on the cards....eventually, although I wonder if it has any further to fall first.

Take care - I spent a few years in mine development and the terminology used in this post last august can mean anything - and even when they toss money at it to fix (which they are doing) can still have reflected problems during operations.

"Management emphasis is being placed on minimising both schedule and cost
increases.
To achieve this, the Project Management team has been strengthened by the
introduction of new and additional expertise to address and overcome some
deficiencies particularly in project construction.
Contingency and corrective action has commenced. The detailed impacts on
project schedule and capital cost are being finalised and will be released when
available.".

With field experience at a premium, with the sheer number of projects happening - someone has to get the chaff

the share price is still falling on reasonable volume

I shorted after the above ann and have a target in the 150/200 area,

I find Westpac analysis quite good so that should mean other prospects are looking good for CMR and they would be thinking that commissioning problems must be under control but no-one can be sure of this.

 

[benwex]

Does anyone have an idea how the Oxide project is going??? cost over runs and starting date??

The latest estimate was for the project to come on line in feb 2008 and this was made in an update announcement in Oct 07..

http://www.compassnl.com.au/news_room/_asx/cmr_asx_2007-10-03.pdf

Also included is a reference to a meeting with the financial backers HNC pertaining to the Sulphides project, any news on that front??

Just tried calling the company secretary for requesting when there will be a new market update.

I think the company have failed to realised how their poor communication to the market is having such a damaging effect on the share price.....

The potential of the sulphide plant is huge. Copper, Lead, cobalt and silver....It would be in the top three lead producing mines in the world based on their estimates...

benwex

 

[benwex]

Its seems todays announcement has answered my questions..

And look at the nice rally...

strange

benwex

 

[kloid]

Hi,

Does anyone know what happened with Compass today? Up 34% to $2.25 and there's been no official announcements today.

cheers
Kloid

 

[Macronomics]

Well that was quite a jump !
It seems to me that the stock is suspended from trading today... No scrip changing hands yet. That jump would have woken up even the most dozy cop (ie ASX - Quite a speeding ticket !
For those of you interested have a look a yesterday's chart !
http://au.finance.yahoo.com/q/bc?s=cmr.AX&t=5d

Exceptionally high volume from the very beginning and the share price just took off!
IMHO someone got their hands on some report prior to release on the mkt !

well lets keep a look out for the Announcement now....

 

[Macronomics]

Just saw the response to the price Query - Nothing, Nada ... Zip , The company knows noothing.... so someone got really excited
But whats not to get excited about
Its been a bad run and I'm just waiting for the production to begin after the amazing delays ! Maybe then the co is going to be noticed again...

I reckon the monthly Project Completion updates are a brilliant idea the mkt desperately needs some reassurance ...
any opinions from other CMR followers ?

 

[treefrog]

Just saw the response to the price Query - Nothing, Nada ... Zip , The company knows noothing.... so someone got really excited
But whats not to get excited about
Its been a bad run and I'm just waiting for the production to begin after the amazing delays ! Maybe then the co is going to be noticed again...

I reckon the monthly Project Completion updates are a brilliant idea the mkt desperately needs some reassurance ...
any opinions from other CMR followers ?

overindulged long at the 170/90 level so not complaining

suspect the reaction was to the nice glossy, heavy spin annual (aren't they all these days) released friday

nice completion of inverse H&S after yesterday's close

was a bit of a market darling with analysts only a short while back with solid buy reccos around the $5 - not much has changed except for a $20m overrun on startup costs and delay in commisioning - not worth the pounding it got.

 

[treefrog]

seems to have caught a bit of attention and now running well near close today:
MTprice downtrend finished
MTmomentum downtrend finished
MT momentum uptrend running
no uptrend established yet - just spike without huge vols

holding

 

[digajack]

Just one more little rally please CMR...and I promise never to use the F word between CM and R again.

 

[benwex]

up nicely today by 10% so far...

I think this maybe a candidate for potential break out????

BENWEX

 

[maungatapu]

Has anyone got any idea why CMR dropped from $2.68 to $2.48 just after 4pm.
Ask bid is $2.70 buy bid $2.48. Maybe an insto selling down?

 

[oldblue]

Has anyone got any idea why CMR dropped from $2.68 to $2.48 just after 4pm.
Ask bid is $2.70 buy bid $2.48. Maybe an insto selling down?

Late announcement updating Browns oxide project. A bit obscure but looks like a slight delay in commissioning.

 

[benwex]

Has anyone got any idea why CMR dropped from $2.68 to $2.48 just after 4pm.
Ask bid is $2.70 buy bid $2.48. Maybe an insto selling down?

it looks to me like a margin call for someone...

insto imo would not dump stock like that with such a light depth..

it was forced selling.

welcome thoughts

benwex

 

[Miner]

it looks to me like a margin call for someone...

insto imo would not dump stock like that with such a light depth..

it was forced selling.

welcome thoughts

benwex

They are looking for a project manager for the brown oxide project.
Not ready to commit more than 12 months
Reportedly the project got delayed significantly
Pay out rate is at least 30 percent less than market rate
THey are probably still searching
That shows few things : they are not keen on the project to invest, no leadership yet to run the project, the project got delayed and still to be delayed,

Just some thoughts but there could be some inside story too - do not know

 

[Motogoon]

What happened today!?, had a quick read of todays announcement & thought it was ok, but obviously was not!

I'm getting punished on this one.

Someone please tell me some good news!

 

[maungatapu]

In the agreement with HNC, HNC was to come up with $72m of the capital cost of the production plant and 50% of the production cost in return for 50% of the produce. CMR was to provide the balance estimated at less than $20m. for the Browns oxide project. Total cost approx $92m
In the Brown oxide update 22 July the capital cost of the production plant has been revised up to $175m from $140 in December. Take away HNC's $72 leaves $103m for CMR. to cough up. Way off the $20m they estimated.
HNC pays $72m for 50% CMR pays $103m for 50%. Fair? or has somebody not
done their homework.
The only good thing on the horizon is the sulphide JV. HNC to provide 100% of the capital cost until a production with an annual capacity of 4m tonne per year of mined ore is reached providing HNC wants to stay in the joint venture.

 

[gerryvm1]

Based on the "revised" capital cost to CMR, is it a good idea to buy more now, and dollar cost average the share price down, or is the current value realistic and likely to stay where it is for some time?

 

[maungatapu]

http://www2.aspecthuntley.com.au/pdf/directbroking/researchlink/2008-08-01/C
MR_2008-08-01.pdf The next 2 quarters are critical. Paying off debt with shares @ $1.30 hence the drop in SP and valuation.

 

[spanky ham]

cmr compass resources

hi, bought an amount of shares in cmr at $4.50 and $5.00. thanks to a certain share market site i bought a years membership in. there might be people out there that know what site im talking about. the manager kept going on and on to buy this company at a high price just to push the price up for his own benifit. well it didnt work now cmr is under $1 . due to this advice and poor advice on other company recomendations, i will be doing my own research in future.

does anyone have any prospects for this company or any opinions?

 

[poretti]

spank ham it may console you to know i have had the same experience with our mates at that particular establishment. that was when i first started out, at least its made me a little more discerning about who i listen to, and more importantly to be critical of everything i hear