some info

CCI is looking at prod'n Aug, and full prod'n JAN... sounds negitive...not really....

BT has met with approx 30 + brokers, analysts, larger holders...and 3 others this arvo.

Gavin Wendt of Fat Prophets (was Intersuisse)...Ords Minnett....

Full week next week in Perth meeting Pattersons etc.

That ann is brilliant...U has taken the stage for now... but profits will rule imo.

Aka done, and 3 high quality offtakers done...at least 2 more to come possibly.

I think everyones profit expectations are a little high....

CCI's 74% share of a conservative 200,000 tpa

(240,000 tpa more likely...plant can handle 360,000 )

Working on a conservative 200,000tpa and
margin of A$80......

A$12 mill pa net to CCI after Aka's 26 %....this is just my opinion

Apply a P/E of 5 or 6 and we have good reason to believe " there will be few multiples "

Im still thinking 5 - 6 cents year end.

Again these figures are conservative.

I was thinking A$15 mill pa, and that is still achievable imo.

Im not expecting FS to be finished for 6 weeks....things take longer in SA.

We need to take a longer term view here....great time to top up...BUT if / when some of these brokers start buying...it wont take much to get things moving.

Next week Brian will spend the whole week with Perth brokers.

Rand movements are not an issue...nearly all CCI transactions will be in Rand...

CCI have made a conscious effort to avoid dealing with the Chinese at this stage....the other projects are down the track....

Wrt to currency, the issue should be repatriating profits to $A...no big deal....follow the Rand V Aussie

Bau should be zip I feel....forget it imo.

Linnell took a while to convince to come on board CCI....he is a major asset.

Linnell also introduced Aka and Mettaloy who organised the offtakers...and there seems to be more of them on the way.

AIM listing is very expensive....approx $2 mill in lawyers fees....But CCI are definitely looking at it in the near term. Up in the air.

Linnell is chairman of 2 AIM listed SA miners....he will take the lead there...if it happens...my guess is yes at some stage.

Chemical sales dont happen in SA (no chemical industry ), BUT in Europe it is big...cant get enough...so the UK offtakers are very keen....but contract is not till Jan. Others in meantime ?

Foundary sands are the best paying product and the SA manufacturing industry cant get enough....

Rand York and Insimbi are big there ( Tennant in the UK
will take the Chemical...they are the largest dealers in UK/Europe for ferro alloys, metals and minerals to the UK steel, foundry and refractory industries).

Basically, the CCI product mix is one third Foundary, Chemical and "Met"....Rand York will also take the "Met"

Keep in mind Aka has to pay their share...Aka will be paying at least 26% of the A$8 mill CCI paid for the mine imo.

The DME is now full of " Black " beaurocrats, so having Aka should help with the license.

Brian emphasised , as we now know, RSA do things slower than here and they view Aussies as "pushy"

Brian is honest, very capable and has successfully negotiated some very complex situations over the last 10 months and that is one reason why we will buy more at some stage... Quality Management.

The market is fickle....a BEE heads of agreement early Feb and a rush to 2 cents....A BEE Finalisation now as well as multiple offtakers and no interest......

BT gave the good and the negitive... we all appreciate that.

I reckon the next period till FS results to be 1.4 -1.7......there will be some wanting a decent stake.........downside will be limited....look at the depth 1.3/1.4....placement was done 1.2.

But what do I know !

Potential.....medium/longer term ?
Accumulate a few ?