comparison to kas...

I'm not here to bag KAS but to show you the ridiculous price CSD currently sits at. I honestly think KAS is undervalued too, just the market stinks at the moment.

Market cap (KAS) ~ $50 million, 396 million shares
Market cap (CSD) ~ $16 million, 256 million shares

Now the figures for the DFS and PFS are slightly different, KAS is based on US dollars and CSD is based on Aussie dollars. For the benefit of the comparison, I'll use the same values as KAS. That is, the tin price of $23,025 and the AUD-US exchange rate of 0.925. You should also be aware that a DFS and a PFS can be slightly different.

Interest in project (KAS): 75%
Interest in project (CSD): 100%

CAPEX (KAS): US$181 M
CAPEX (CSD): US$82 M

NPV (KAS): US$126 M
NPV (CSD): US$111 M (after exchange/base rate differences.)

IRR (KAS): 23.3%
IRR (CSD): 111%

Payback period (KAS): 3.2 years
Payback period (CSD): 2 years

Life of mine cash costs (KAS): US$15,309/t
Life of mine cash costs (CSD): US$15,045/t

For the first two years, the rates of tin extract for both companies will be similar, 5000 tpa of tin. It is then hoped that CSD will be able to sure up its own reserves to continue this output. (The drilling programs for both companies are miles apart, with KAS spending millions where CSD has spent only thousands, yet similar results have been achieved courtesy of the near-surface ore bodies).

KAS obtains a couple of million from their investors as part of the take-up of the project. CSD earns 10% of the profit from a very substantial copper and poly-metallic resource operation. Both have enough cash to keep them running day-to-day for some time.

Both companies have more positives with different deposits and commercial interests but looking at the numbers you should be able to see that CSD is significantly undervalued. (NOTE: You should also be aware that dilution will occur for both companies - that is part of the game. You can read up about the current plan on the CSD website, although don't worry too much as things can, and no doubt, will change.)

This brings me to the last few points. KAS was meant to be into production 2015 but that has been extended further, now 2016. This is before construction has began. THIS HAS TO BE THE MAIN BENEFIT for CSD. First it will be into production sooner, and second, it has most of the infrastructure already in place.

Roads, power, licenses, water, tailing plant, a jaw crusher, ball mills, trained people, the concentrator... and working! There just need to be a few minor modifications and additions to be completed for the tin project.

Once again, I'm not bagging any company here, just pointing out at current share price the value of CSD is EXTREMELY undervalued. IMO, there is only one thing holding this stock back and that is a lack of buyers, from being in the resource sector and the supposedly 'mysterious' Chinese dealings. (Both of which is rubbish.)

CSD is treated like a spec but it isn't. It is part of a potentially huge operation and the tin project WILL come into fruition. It is just a matter of tying up the loose ends, which could be on any day, and then it will reach its full potential.

;-)

Watch this space.

PS - For full disclosure, I do hold a fair bit of CSD and would have held more if I didn't go traveling to Cairns and to the Mt Garnet operations recently to seek out more information. (AND unfortunately, I do not work for them!!!)