chart update, page-46

Mojo,

Attack the poster is the standard procedure when there is nothing real to say.

In my opinion, the biggest challenge for CDU over the next 12 months is making sure that there is enough cash to build the mine.

The recent halt to raise additional cash was therefore of interest and it resulted in my recent posts.

In January, we saw the CDU prospectus which told us that the mine would cost between $250m and $310m. Normal admin and exploration costs run at about $20m per year and therefore the cash required for the 2012 and 2013 years comes to about $290m to $350m.

The prospectus told us that there would be about $170m in cash at the end of the January raising. That left a shortfall of $120m to $180m still to be raised.

The recent process attempted to raise $60m according to press reporting. In the end, it raised zero. Times are tough.

Earlier this year, I predicted that the CDU price would drop to $3 before the end of 2012. Just about all posters at the time said that the prediction was pure nonsense.Well the price did drop to just under $3, proving that most posters here get these things wrong.

2013 is a critical year. A lot of cash is needed to complete the mine if you take note of the numbers in the last prospectus. Europe has gone back to negative growth. The USA is struggling with their fiscal cliff. Expansion in China has slowed.

Markets in general will feel the pinch in 2013 and CDU wont be immune as it has the risk of having to raise more cash at the worst possible time.

The bottom that it will hit, will depend on the extent of all these issues combined. There will be bargains everywhere, so cash on hand to take advantage would be sensible.

I dont follow the crowd. I put up my own views as most here readily know.