ROH - CDU is going mining absolutely that is going to happen the 3 Chinese companies will see to it - Remember Sinosteel is a Chinese state owned entity.
The Blind faith I refer to is - no one knows how profitable CDU mining will be ? - No One knows how many shares will be on issue prior to first div or if there will ever a be a first div - 50% plus 1 share gives the Chinese enough stock to punt the board and control the company - no need to ever even mount a full take over - Just keep ploughing profits back into greenfield expansion - but I digress.
The real blind faith is presuming the bulk tests results or higher bonanza grades will extend beyond the 6mt / 9mt defined in the resource.
To use an analogy - lets say Buddy has a paddock with 1000 bulls in it - 100 of them are prize winning stud bulls and the other 900 are destined for Maccas - From a helicopter they all look the same = Buddy tells Mrs Buddy they are all stud bulls he goes into the paddock and rounds up a 100 into a holding pen then gets them DNA tested and valued. He repeats this process with several different Bank Managers to borrow against the herd of 1000 stud bulls.
The bank manager wouldn't know a stud bull from a can of spam but obviously there are at least 100 very valuable bulls there - Buddy knows which ones they are but the Bank Manager doesn't - Blind faith is being shown but unfortunately the 100 valuable beasts are not representative of the total 1000.
CDU was overvalued at $4 on its disclosed resource - W.M has said the DNA testers won't allow his other Bulls to be truly valued because they are unique and have 2 appendages so are outside the known herd modelling code.
Only mining will reveal how much bonaza copper is missing and only then will the final capex and stock on issue numbers be known until then investors are relying on Blind Faith ( IMO )
hOOt
Pre open notice recieved now as I type ?
Add to My Watchlist
What is My Watchlist?