could be a buy? + huntley's article

Huntley has a buy below $3.80 on CSM.
It is now $3.25, 14.4% below. Must be some value here.

Kiernan's Resignation Will Test Management Depth

No doubt Kiernan has been an integral part of CSM's success, but with the outlook for strong long term commodity prices, his legacy may last quite a while past initial concerns. The marketing link with commodity trader Noble is well established. Growth is in train with nickel earnings expected to match manganese in a few years. The company is focused on nickel exploration with a FY06 budget of $10.5m. Expansions and mine life extensions are on the cards with the aim to increase nickel output from 5,000tpa to 20,000tpa before building a concentrator. The Jaguar deposit should allow CSM to move into copper and zinc with an exploration and expansion focus similar to the nickel strategy.


We can see a few years yet of solid growth underpinned by robust prices for manganese and nickel and increasing production of nickel, manganese, copper and zinc. The new MD and his team should have sufficient time to prove their worth. A number of the key team members have been with Kiernan from the beginning, providing some comfort the show will go on. The attempted takeover of Portman and joint venture negotiations with Hope Downs saw the management team strengthened in preparation for substantial growth. The friendly Reliance takeover brought it's team and nickel experience. Existing management has proven its worth in exploration, logistics and marketing. Hopefully Kiernan's departure won't take the edge off CSM's deal making and operational capabilities. His imminent departure may hasten a company transforming corporate deal and make it a serious midcap player. We maintain our Buy recommendation based on the strong outlook for prices and medium term production growth.