As a shareholder of SFR until recently, (sold at a loss, looking to get in at ~$5.25), I can easily see more potential in CDU than SFR.
SFR, though making a profit, still have over $200m in debt according to the half yearly. They seem to be attempting to buy future growth by investing in nearby exploration by farming into nearby areas.
If CDU, who have no debt went down the same path, there is AOH's assets nearby of great value to CDU, ie Blackard and Scanlan, both NCu rich resources of copper. AOH also don't appear to be including them in their planning with DFS (again) for Little Eva, so it shouldn't be a surprise to anyone if they appear for sale.
CDU by highgrading Rocklands processing plant, is likely to have the same or better cashflow than SFR in 2015, without the debt. Somehow the market seems to think that SFR is a better bet than CDU, by it's market cap being nearly 3 times that of CDU.
In value and potential, to me it is the opposite, once CDU starts bringing in the revenue. I expect the market to wake to this as well when revenues start flowing.
CDU Price at posting:
$1.62 Sentiment: LT Buy Disclosure: Held
