30.3 mt @ 1.70% cueq, page-45

Charlie123,
I had the same thoughts to describe some of the postings by non holders ----jealosy.

The proposed closure of the Mt Isa smelter is regretable particularly for those losing their jobs. Xstrata says they will be absorbed into their other operations. When the time comes, that remains to be seen. Absorption still means jobs lost.

What happens to the refinery workers at Townsville is another matter. Mt Isa and Townsville will be the poorer for the closures.

With the emphasis on pollution,I think there will be no new smelters. Once Mt Isa closes that's it.

You raise a very good question. What do the other companies do . Admittedly the closures are mooted to be years away but is that locked in stone? They, as you point out, would need access to Port of Townsville and,with CDU to spend $15 million, money raised at their current prices, would cause dilution.

Unless they have port facilities lined up, they are snookered. Add to this cost of plant[in CDU'S case] $200 million ,then there would be massive dilution.

Xstrata will have a much stronger position in relation to negotation with the juniors.


CDU was in a similar position years ago with a huge share registry. Wayne overcame this by a consolidation issuing 1 for every 10 held. At the time , I wondered what he was doing. As it turned out, it was a smart move. I still had the same value in the company at 20 cents as I had at 2 cents, only less shares.It took away that penny dreadful look.

Acting when the price was so low was the key.Had he waited till a much higher price say $1 then the share would have to be worth $10.

There is the possibility that the region could finish up with only a few miners. CDU will be one of them.