game over?, page-41

Spiderman,

You obviously haven't done your homework with regard to CFE. They don't just buy cheap assets and sell them for a higher price. CFE has often been described as more of an 'incubation' company than a "Gordon Gecko investment company". Here's a few of examples.

The Marampafe project is currently being aggressively drilled out and will be JORCed out by the end of September, at which time will be up for tender with a 600m price tag. It was bought for a song.

CFE also acquired a third of DMM for 2m and have just taken over the rest for around 40m by memory. This project is also being fast tracked to a JORCed and pre-feasibility stage. Targeting around 1b tonnes of fe, and crucially with fe projects, has an existing rail to a deep water port. Carmichaels value this one higher than Marampa.

CFE took over Copperco when it went into receivership. The Lady Annie copper mine, which was part of the stable of assets, was sold for more than the entire cost of Copperco. A swag of others have been sold or a being prepared for sale, such as the Sappes gold project in Greece, which is going through the permiting process to enable a sale at 50-80m.

There's also a monster IPO with their share of Pinnacle towards the end of the year. Indeed the list is seemingly endless. One difference between CFE and eighties style Alan Bond type companies is that CFE don't take on debt. They just use their burgeoning cash position. It wasn't that long ago that CFE was just another penny stock. Proof's in the pudding and the dividends that we've been receiving.

You don't seem to understand that assets are sold, not for a small quick profit, but for multiples of the original purchase price. Not only sustainable but hugely profitable.

Peter