interesting interpretations

Its seems a bit ironic that a company announcement to clarify the position with regard to placement(s) results in 50 different opinions. The English language is a complex thing but I really didn't think that the announcement was that ambiguous. Some of the comments in posts since the announcement seem to be devoid of knowledge of what was actually contained within the announcement itself. While its disappointing that negotiations drag on, this is surely no excuse for ignoring the facts.

There have been some classic comments in post announcement posts. Its not necessary to address every one of them but it seems to me there are a few that are just a little too far off the mark that they do need highlighting and addressing. These include:


zzedzz starts it off by saying: "Its pretty clear that OW were never going to buy the next lot at $3.80". Apparently z missed the statement from the company that informs us that "Discussions with Oceanwide are ongoing in light of their request to the Company that they may entertain settlement of the agreed placement but on a deferred basis with completion put back 3 months". So they have asked for an extra 3 months to pay. Big stretch to say "were never going to" when it appears they still want to.


z then informs us that "It now appears that CDU dont want to admit that selling at $3.80 is very very hard in the current market, if not impossible". At this point I'm wondering what if any announcement Z actually read. The entire announcement focuses on telling us of difficulties in completing negotiations due to current market conditions. Specifically they state "During the course of these discussions and negotiations the global equities markets have been very volatile, making it increasingly difficult to secure final agreement with Oceanwide on the placement proceeding on the terms outlined in the agreement previously made between Oceanwide and CuDeco.". Was that not clear enough ? They don't want to admit what Z ?


And there is this bit of wisdom thrown in by z for good measure "Cash is KING especially in these times". Gee thanks for that. The only bit of the post that seems acurate but hardly telling us anything that isn't bleeding obvious.


z then asks: "Un-named other groups were supposedly also ready to step up to the plate 5 or 6 weeks ago. Where did they go?". Another bit of the announcement z seems to have missed said "the Company has commenced dialogue with other Hong Kong based groups and is close to finalising an agreement on a placement of shares and short dated options". Short answer to your question z, Nowhere !


Given the above statement from the company that it is "is close to finalising an agreement on a placement of shares" with other Hong Kong based groups this next statement from zzedzz just seems bizaar: "It appears that those investors from 6 weeks ago have decide not to proceed with taking up a placement". How could you possibly read the announcement and yet make such a statement ?


In addition to informing us that "" zzedzz then tells us "Getting a placement away today is much like selling a house. If you get the pricing wrong it sits around for 12 months unsold.Get the pricing correct for current conditions and it can all happen quickly". This leads me to wonder when exactly is it that you can misprice something and it won't go unsold ?


AU76 then tells us that "CDU is having serious problems finding an investor willing to take the risk in the current market". This seems like an odd statement when the company has just told us that "is close to finalising an agreement on a placement of shares" with other HK based groups and that OW have asked if CDU would "entertain settlement of the agreed placement but on a deferred basis with completion put back 3 months". With two of more parties currently at the table how can you seriously make such a statement AU ?


To go on AU and say "My feeling is that OW have realised that their due dilligence was poor to none when they agreed to the initial trance" just seems like baseless speculation. DD is based on the resource and long term demand, not short term commodities and equity market trends. Is there anything at all to make you question their original DD and if they got it so wrong why have they said they still want to settle the deal in 3 months ?


Oslo then concludes that "Fine with me if you want to bury your head in the sand. Fact is times have changed and to date only OW have an offer on the table. Take it or leave it". The announcement tells us that CDU is "close to finalising an agreement on a placement of shares" with other Hong Kong based parties. Did you not read the announcement either Oslo ?


Now I'm not here to tell you that I know how, when or even if a placement will be made or on what terms. My post will no doubt be seen by some as a supporters club announcement but really all I want is to keep the facts in picture. Its not like it was a long or complex announcement and the wording was pretty simple. I find it concerning that a few regular posters could somehow overlook key key messages in this short announcement.


There were three key messages in the announcement:

a) OW have no yet completed based on the original MOU. Negotiations have been impacted by the 25% fall in the price of copper and generla market conditions.

b) OW have asked if they can settle "the agreed placement but on a deferred basis with completion put back 3 months". They have not walked away.

c) "the Company has commenced dialogue with other Hong Kong based groups and is close to finalising an agreement on a placement of shares and short dated options"


As the original placement has not settled on time its easy to put a negative spin on things but I'm not sure doing so is a fair reflection of the actual content of the announcement.