cbh over next 2 to 3 years, page-2

Mookie, comments:

* Hugely profitable mine at Endeavour.

This is the flagship of the company, but atm the flag has been somewhat flaccid. I'm no mining guru and happy to be corrected but my understanding is that that when Pasminco started the mine they didn't paste back fill, and once taking out the high grade ore and handing over to CBH, left it with a lot of mine development to do (and inherenet structural risks). A mine/stope collapse last year amplified this.

It sounds like they've still got a bit of work to do to get it fully operational and are working to pasting up the mine where needed. Media reports provide varying suggestions as to where the mines at, and the recent Quarterly left it open to interpretation. I've emailed the company before so perhaps another one is due to seek clarity on this. I also welcome any info from others on this too.

IMO the nervousness is firstly in getting this mine to full production, and then for it to continue settled for a proven period of time. I've no idea what the time period is, but would suggest atleast a quarter from full prod for full confidence to return.

* New mine at Suphur Springs

It is relatively low grade, but there's lots of it. A positive, considering kangaroo caves up the road. Is also relatively near Port Headland which is also a plus. BFS yet to be completed but if Company remains cashflow positive will be a no brainer.

* New mine at Broken Hill
This could be the icing on the cake for the brownfields mine. From all reports the project manager Visco Sulicich knows his stuff and resources have been recently upgraded. The upgrading is in the top 400m, so the benefits of the re-rating will be realised sooner rather than later.

* Triako's / CBH's mine shipping ore to CBH's existing mill
Well this is yet to be completed. Sounds good in theory but in all honesty yet to see any real figures suggesting what will be leveraged by milling at CBH. Must admit though, haven't really done my homework with this aspect of the company.

* A zinc price of ...(look at the deficits drawn down daily on supplies)
One thing with CBH is that it is fully un-hedged. It is exposed to both spot prices and the $A which can be good but could also be bad. Expert Analysts have suggested Zinc fundamentals will remain solid for a couple more years....but experts can and do get it wrong.

* An iron ore project probably worth nil
Agree - I can't say I know too much about this other than based other peoples comments is out in the middle of no mans land and worth stuff all.

The www.cbhresources.com.au has a hartleys report on there as well as a couple of interesting (but old) corporate presentations, which if you view them in light of current standings IMO highlights a very positive outlook.