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CNF - Continental Goldfields

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YOUNG_TRADER

YOUNG_TRADER

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Hi guys,

I've found a real speccy shell that looks to be getting ready to join the Iron Ore boom, see below



CNF​


Mkt Structure

Shares
135m
+ 25m 20c Opies 30/9/07 Listed Opies
+ 50m 20c 30/6/10 Unlisted Opies



Mkt Cap @ 12c = $16m Current



Cash
$7m + $2m in a listed investment which they are looking to capitalise on = $9m


Placement
It should be noted that 45m shares were placed at 12c recently, these shares from what I understand it were placed to Sophisticated Investors who are very unlikely to stag a profit, but may do so nevertheless,

Thus as with ACS caution is advised when buying, however buying at or close to 12c seems safe both from a chart/technical perspective and in terms of the placement



Projects


Vandiferrous/Carbon Steel Project Carbon Steel/Pig Iron/Vanadium, 25%, South Africa

From the looks of things, this seems to be an old operation that went to the wall due to poor Pig Iron prices, "Pig Iron prices 25% of what they are now"

So I'm expecting that there is a historic resource which would have to be several hundred million tonnes of magnetite/vanadium type ore given that a whole operatioin was up and running, However this is just a guess. The company has not released any historical figures or grades, it simply describes the deposit as being "a significant vandiferrous magnetite deposit"

The good news is that the project comes ready with most infrastructure, including an ex-Iscor/Mittel Steel Plant.

The project will use 1M t's p.a. of Magnetite Ore to feed the 350k t p.a. Steel Plant and "should generate revenues in excess of $200m p.a. with vonsiderable multipliers in secondary Industrial activities"

The company describes this project as a turn key project, ie given its a historical project it won't take much to get it going.

However it is still very early days to make a call on the value of this project


Bow River Diamonds, 20%, W.A.

This project surrounds RIO Tinto's Argyle Diamond mine operation which is Australias and one of the worlds largest diamond mines.

Again it is still very early days to make a call on the value of this project

Grab samples have yielded some significant results so far though


Summary

- A large placement done recently at 12c
- Chart wise 12c seems to be long term support
- A very interesting looking vandiferrous/carbon steel operation
- Still speculative though
 
With that much cash relative to market cap and a turn key project it would seem pretty attractive, especially with the placement providing support.

Seems to be a good find.
 
They dont actually have a stake in the SA project yet do they? From what i have read it stated they were in final stages of negotiations.

Also can someone please help me out with some info im trying to find out about the options. Particularly their expiry date and exercise cost.
 
Expiry date according to Comsec is 30 September 2007(the question is Karlos do you feel lucky!) and exercis price is 20c(according to Tradingroom.com-gives all sorts of info such as closing prices etc)
 
Hahaha not that lucky there is buckleys that this thing will get above 20cin the next couple weeks. I doubt anyone will buy or exercise them
 
Doing OK in early trade, up 8% to 13c, volume a bit on the low side though.

Not that much out there on the ask stack for the buyers to take though.
 
Yeah shares are hard to come buy, I managed to grab a fistful at 14c last week or earlier, but its still a spec play, most will say they will wait for the project to be confirmed or company to release a JORC etc, but I personally think by then the SP will be in the 20's, so I've taken the risk and gotten on board now,

The question you have to ask is do you feel lucky? Well Do Ya? Punk??????????????? (Alan :p:)
 
The oppies are obviously going to lapse, so little dilution unless they are underwritten YT.

Taking a good look now.:)

Would you like to run your eyes over ARE - I'm pretty excited about it as they are 4 weeks into drilling Kroombit - which could prove to be a world class copper deposit. (See threads elsewhere for more info);)
Thanks
 
Solid rise on reasonable volume today. Again, not a lot really on sale, not an order over 100K except at 14c. Can't really get the number of shares that I want :(
 
Well, today proved to be a blessing in disguise after all :D

Still not much in the sell for those accumulating..gotta put your bids out there
 
YOUNG_TRADER said:
Hi guys,

I've found a real speccy shell that looks to be getting ready to join the Iron Ore boom, see below



CNF​


Mkt Structure

Shares
135m
+ 25m 20c Opies 30/9/07 Listed Opies
+ 50m 20c 30/6/10 Unlisted Opies



Mkt Cap @ 12c = $16m Current



Cash
$7m + $2m in a listed investment which they are looking to capitalise on = $9m


Placement
It should be noted that 45m shares were placed at 12c recently, these shares from what I understand it were placed to Sophisticated Investors who are very unlikely to stag a profit, but may do so nevertheless,

Thus as with ACS caution is advised when buying, however buying at or close to 12c seems safe both from a chart/technical perspective and in terms of the placement



Projects


Vandiferrous/Carbon Steel Project Carbon Steel/Pig Iron/Vanadium, 25%, South Africa

From the looks of things, this seems to be an old operation that went to the wall due to poor Pig Iron prices, "Pig Iron prices 25% of what they are now"

So I'm expecting that there is a historic resource which would have to be several hundred million tonnes of magnetite/vanadium type ore given that a whole operatioin was up and running, However this is just a guess. The company has not released any historical figures or grades, it simply describes the deposit as being "a significant vandiferrous magnetite deposit"

The good news is that the project comes ready with most infrastructure, including an ex-Iscor/Mittel Steel Plant.

The project will use 1M t's p.a. of Magnetite Ore to feed the 350k t p.a. Steel Plant and "should generate revenues in excess of $200m p.a. with vonsiderable multipliers in secondary Industrial activities"

The company describes this project as a turn key project, ie given its a historical project it won't take much to get it going.

However it is still very early days to make a call on the value of this project


Bow River Diamonds, 20%, W.A.

This project surrounds RIO Tinto's Argyle Diamond mine operation which is Australias and one of the worlds largest diamond mines.

Again it is still very early days to make a call on the value of this project

Grab samples have yielded some significant results so far though


Summary

- A large placement done recently at 12c
- Chart wise 12c seems to be long term support
- A very interesting looking vandiferrous/carbon steel operation
- Still speculative though
Click to expand...


Hey guys anyone read the announcement?

The company will have a 50% Interest in the Vanmag project

"A report by D.J Schutte in 1980 lodged with the Geological Survey of South Africa provided a (Non JORC compliant) mineralisation estimate based on the above drill hole information of 419 million tonnes down to a vertical depth of 200 metres for the Main and Lower magnetite layers. The Main magnetite layer which has a significantly higher magnetite content than the Lower layer averaged 5.8 metres in thickness with a magnetic fraction averaging 73.5% containing 59.9% magnetite, 1.7% Vanadium Pentoxide and 11.9% Titanium Dioxide. An additional magnetite layer (Upper layer) approximately 300m to the north-east of the Main layer remains to be drill tested."

With an expedited drilling program, Continental aims to delineate a target mineralisation of between 100M and 125M tonnes of 55-60% magnetite containing an average of between 1.3% to 1.7 % V205 and 10% to 13% TiO2 (these estimates are based on the previously published reports, geological mapping, drill hole data and known continuity of the mineralisation in the region).

Guys like I said this will be huge in a few months time!
 
Let me put the announcement into perspective


AXO Mkt Cap $250M+ JORC 100Mts'@44%Fe + 13.5%Ti02 + 0.64%V2O5


This deposit 419Mt's@55%-60%Fe + 1.3%-1.7%V205 + 10%-13% TiO2

So the deposit is alot larger, the Iron grades are much higher, the Vanadium grades are double and the titanium grades are similar


Couple this with the fact that they will be acquiring the Steel Plant and you really start to understand why this is a trun key project,

Oh and at these levels the mkt cap is $16m with $9m in cash and investments
 
By the way, the info is in the ann today, the notice of general meeting, you have to search for it but what I put up is a direct quote,

I will do an updated analysis over the weekend,

I'll probably also be able to put a price value on the project now given the Pre JORC Resource
 
hey yt these guys look very good for a speccie, i jumped in on 13.5 cents, still have half my order waiting down the line. its been a while since ive jumped on a runner, but iron ore is in a great trend, lets see what emerges with these guys

the thing i like is the 9 million cash and acquiring the steel making facility, very nice

anyways ill be holding with interest now
 
This does look promising... I picked some up the other day at 13c, looking forward to your numbers YT.

Good luck, everyone!

Maz
 
YT set stock alight :)

Last 10 trades
14-09-2007 02:14 PM $0.135 50000 $6,750.000
14-09-2007 02:05 PM $0.135 38935 $5,256.225
14-09-2007 01:49 PM $0.130 70000 $9,100.000
14-09-2007 01:12 PM $0.120 30000 $3,600.000
14-09-2007 10:32 AM $0.120 20000 $2,400.000
13-09-2007 10:55 AM $0.115 22635 $2,603.025
13-09-2007 10:55 AM $0.115 14365 $1,651.975
13-09-2007 10:28 AM $0.115 25635 $2,948.025
13-09-2007 10:28 AM $0.115 9165 $1,053.975
12-09-2007 03:58 PM $0.115 10835 $1,246.025 Crossed

If we knew dj picked those up at 13.5 cents, follow me picked those at 13 cents, YT probably those at 12 cents..............not many other interested players is there.

I do like to say I have enormous respect for YT, but as he mentions elsewhere people need to do their own research as well.

Good luck
 
Flyer said:
If we knew dj picked those up at 13.5 cents, follow me picked those at 13 cents, YT probably those at 12 cents..............not many other interested players is there.

I do like to say I have enormous respect for YT, but as he mentions elsewhere people need to do their own research as well.

Good luck
Click to expand...

lol, interest generating now!

as i have said before yt brings stocks to peoples attention, i went and did research after noticing them, liked what i saw for a speccy and jumped, early bird gets the worm.
 
a couple questions about them:

what track record does the managment team have?

what length of time until cashflow is likely to start?
 
check out the oppies.

total all or nothing play as they expire in 2 weeks time!

do you feel the price will be above 20c by then?? lol almost worth a gamble IMO expecially the way it moved today
 
prawn_86 said:
a couple questions about them:

what track record does the managment team have?

what length of time until cashflow is likely to start?
Click to expand...

Prawn you play the specs as I do (RMI CUL etc)

So a question about cashflow is a bit silly as you know with these specs its always sometime off,

The bottom line is this deposit is superior to AXO's in terms of its Ferro/Vanadium/Titanium content, especially the vanadium content which is over 2x as high as AXO's and 2-3x as high as PMA's

The pre JORC resource is huge, 419Mt's is a very very large deposit! They expect to get 100mt-125mt "55-60% magnetite containing an average of between 1.3% to 1.7 % V205 and 10% to 13% TiO2" from the first round of drilling,

Also as I have said the fact that the are very close to securing the steel plant/infrastrucutre means that the lead time for this project should be less than alot of the current hopefuls, AXO took nearly 2 yrs to get its project going and it still isn't producing a cashflow
 

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