Fro goodness sake - some people ar talking about a company with comissioning problems when the share price is around 70 BLOODY CENTS
SEVENTY BLOODY CENTS - crikey I have put money mongrel dogs worth more than that .........and WON
In my mind forget the oxides - yes they need to reduce production costs that it obvious even to me - can they do anything about metal prices - NO - can they do something to reduce production costs - well they have the number to say they must. As I see it the announcement (which probably ought not even have been made coz is all theoretical) should never have been made.
They have no say on what metal prices will be so ought not be anticipating them - they can and should be disclosing what they expect production costs might be - and they should be working on worst case senario - because that gives them a ball park figure to work on and aim to reduce.
In my mind it is entirely proper to provide the expected costs for production - but entirely improper to use some of the silly prices they used as income.
My take of the whole excersise now that I have settled down is that the message is THEY NEED TO REDUCE COSTS. They can do SFA about prices - they cant control metal prices - they can only work to control costs - and provided they proceed to production with it clear in mind that they MUST reduce cost - then what will be will be.
If you want a an absolute promise that the oxides will be profitable - then wait for till thy are producing - if however they end up profitable you will be paying heaps more than 70c.
It's a punt - end of story.
If you think metal prices are stuffed and nickel will go to $3 - cobalt to $20 and copper to 2.50 and stay ther ...DO NOT PUT MONEY INTO THE STOCK
If you think there is room for metals to assume a level mid range between the recent highs and recent lows AND that the comapny has room to educe costs now tha the desk top excersise has demonstrated a need to reduce them - then 70c seems a fair punt
Oh but then the obvious potential remains that HNC will give the go ahead to the sulphides and if that happens she is worth heaps more than 70c
Personally I supect there is room to reduce opex and make use of decent base metals prices without the fluff and end up with a moderatley cash positive oxides operation
It wont be a high cash yeild job offering dividends like some of us have worked towards - but if worksout wont be cash consuming
Crikey - get real - it is either a sulphides play on the longer term or a take over play shorter term
As such the oxides are neither here nor there.
Personally I would prefer to see the oxides provide cash for future exploration at least - if that fails then put it in mothballs -
Get real - HNC wanted to make a take over move at $1.50 but the chinces government wouldnt ok the money (they had a mega olympics to pay for)
The Olympics are done now - the sp is much lower -
She is either a long term punt at 70 odd cents for the sulphides play or a 70 cent punt at a take over play - forget the oxides -
Get it in perspective and stop down ramping - ya just look stoopid
The oxides will either be a bonus to the mob taking over or help pay for CMR;s obligation towards exploration
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
