I received the quarterly report (sent by CCU themselves) in the post last night which I re-read. It was interesting that they would send it out in the first place as they have never done so in the past but when I think about it the next few weeks are going to be pretty important for CCU and the feasibility due out in June will be a watershed event for the company imo.
I dont think there is any doubt that the feasibility will show a very robust project, particularly in the current environment of rising AUD silver prices.
What I found interesting in the report are the following:
1) No issues encountered in the feasibility so far - what this is basically saying imo is that the feasibility announcement in June will be positive
2) Mine life will eventually increase substantially from 4.5 years currently
3) Cost of production is low. With high AUD silver prices margins are going to be very strong
4) CCU will emerge as a 100% owner of the project (Wonawinta) post feasibility with CBH only receiving a royalty when in production
5) New drilling program to start once soil sampling is completed. Soil geochemical sampling has already begun
6) $4.5M in the bank - recently completed a raising to a single group at 25c
I think this one has finally got to the stage where there are enough catalysts to see a sharp turnaround in share price.
CCU Price at posting:
21.1¢ Sentiment: Buy Disclosure: Held
