CSD investment - producing zinc, copper, lead with tin to come!

The following can be substantiated so please just ask and I'll point you to the correct source, but I've also listed some at the end.

CSD has reconfirmed 2014 production targets of:

• 25000 tonnes of zinc metal (Approximately worth $66 mil)
• 6000 tonnes of lead metal (Approximately worth $13 mi)
• 2500 tonnes of copper metal (Approximately worth $19 mil)

Total: $98 million (Note: this is revenue based on current LME converted into AuD, it might not be actuals.)

This quarter, CSD stated that it expects to have $2.37 million positive cashflow, after admin, exploration, production costs. This is the first quarter of operation and ramp up will continue. Even so, that's still $9.48 million annualised.

CSD has 280 million shares and bought a plant/leases for another 610 million shares that are in escrow for 2 years, plus a $16.5 million convertible note at 10 cents. It is also expected to pay $2 million but then has no other debt.

Breakaway research had the net assets, excluding earnings potential, at 17 cents fully diluted.
The IE report had CSD worth 5.5 cents, excluding Snow Peaks 10% and earnings capacity.

What the acquisition includes:

• $10 million cash backed environmental bond
• 1 MTPA refurbished and working plant worth at replacement cost $100 million (substantially more to build)
• Mining leases and working mines
• Trained staff
• Mining equipment
• Wanguo exploration agreement worth $20 million.
• Copper and poly metallic ore bodies (these assets are worth potentially billions in future revenue.)
• Green fields and brown field exploration licenses (one was bought for $16 million)

CSD also brings to the table:

• $110 million NPV tin project (which will substantially improve given indicators from management)
• Alluvial tin deposits yet to be fully evaluated.
• Other tin known deposits.

Together, it's well over hundreds of millions in assets.

Current operations are based on 50% of the plant's capacity... Running poly metallic ore. There exists the potential to run a copper circuit though the price of copper would need to be maintained at this level or above before it would become financially viable. Current copper prices could add another $70 million pa in revenue.

The tin project is where the cream could come from, with another $130 million pa in revenue (as averaged over 9 years). Further detail is coming.

Current market cap is $13.14 million, so the fully diluted market cap will be $41.77 million, which given the potential and the current positive cashflows, I think most will agree this is so undervalued, especially for a current zinc producing operation expecting for its maiden quarter $9.48 million annualised cashflows.

So, why isn't CSD trading higher?

Four possible reasons:

• A larger single shareholder will have control (essentially a property developer and arts collector that has found themselves into money and presented with a fantastic opportunity, thanks to Ralph).
• Only 1000 or so shareholders (being only a few years old and from FNQ, it hasn't established a solid base).
• Poor overall mining sentiment (although this is changing fast, with major economies showing improvements).
• Expected cashflow is not yet actual but the next quarterly will change that.

News should be out soon and next quarterly will give an update to the progress and current valuation of this company. Until then, patience is needed to generate wealth. Lol

;-)

Disclosure:
Values have been rounded for convenience sake. All dollar values are in Aussie.
I am a larger holder of CSD shares.

Sources include; ASX.com.au, CSDtin.com.au, BRR (I can be more specific so just ask).