ZFX have said that they are looking at copper. They have stated they would like it to eventually be 30% of their production.
I hadn't heard the CDU rumour. I'm interested in CDU. They have done an extraordinary amount of drilling that has turned up results for a variety of minerals with Cu predominant of course. They are causing frustration for followers though from what I can see because they are taking so long to produce a JORC.
If ZFX were eyeing off CDU I would be surprised if they moved on them before a JORC is produced as it doesn't fit the conservative approach they have demonstrated over last couple of years. However if they do go for them I would expect them to be able to pretty much finance it from cash.
CDU market cap is currently about $320 million. Assuming ZFX get AGM they will still have something like $1.4 billion in the bank which should be more than enough to get CDU - if they can entice enough sellers. I suspect Wayne Mcrae would put up a vigorous fight.
I would think that ZFX won't need to use finance until their 3rd or maybe even 4th acquisition if they stick to buying up AGM style companies. At that point it shouldn't be hard to do - can explore a variety of means eg full scrip, finance etc. Whilst eps are down they still have good cash flow and minimal/nil debt.
AGM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
