Now thats it's been bought up I have a few views on the subject. CBH management believe that CBH is undervalued and so do holders (or we would sell of course) - so why is it undervalued.
Personally every presentation has outlined clearly the development of the 3 main projects
1. Endeavour - paste fill problems being fixed, increased production, mine planning etc
2. Broken Hill - On track for this time next year and
3. Sulphur Springs - 2 years down the track
All the graphs and production down the line are there to see. However, what is not clear is their attitude and information flow on their advanced projects such as Mineral Hill, Hera and Sorby. Queries I have include:
1. Sorby Hills - Why do we not get updated information or any detail on the work that has been done? (from annual report). Why is this good news not released via an announcement?
"the drilling and geological / assay data to digital formats, recalculating a resource and completing a brief
mine scoping study. The results of the study were positive, indicating that there is good potential to
mine the deposits through a series of shallow open cuts, shipping concentrates out through the port of
Wyndham in the north"
2. Mineral Hill - Two quarters ago they were looking at at a March 08 start. No further details on start times in the annual report - its hard to work out what exactly is going on. From the sounds of it they have been drilling -why don't we get updated drilling reports?
3. Hera the original resource is
1.94 million tonnes at 6.7 g/t gold, 2.8& zinc, 2.5% lead, 0.2% copper and 14g/t silver.
And the new resource is shown below (worse gold grades a little better in everything else). Why was this result snuck into the annual report? Why have no drilling reports been issued?
2.2Mt @ 3.4g/t Au, 4.2% Zn, 3.1% Pb, 0.2% Cu, 18g/t Ag
If they believe any or all of these projects are to be delivered why are they not included in production profiles for 2008 / 2009 onwards?
Surely we didn't go to all the trouble and expense to take Triako over and then dither around forever?
Importantly the Triako assets apart from revenue offer further diversification into gold, copper and silver making them less reliant on zinc if we see an oversupply in that area in the coming years.
In the latest resource stocks article the 3 projects get mentioned by name only with no detail whatsoever - and management wonders why they are undervalued?
Thats why I think CBH is undervalued...
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