I meant you won't get much convincing from the persistent negative gainsayers. The assumptions are extreme, always selective. Just an example...in determining future cash needs the assumption was that the spend on buy back ould continue at the current rate indefinately to mining, the exploration expenses would continue at current rates until total collapse of the company. No subtlety. The vitriol expended against the buy-back and running out of cash, even when it was explained to them that the company buying at less than the price than the major holders would pay fell on deaf ears. Yet...CDU did buy, did sell and made a profit as well as retiring some shares. No comment forth coming.
Plant has been bought for a song and being re-wired to process some of the Wilgar material to establish early cash-flow, hence the on-going work at Wilgar.
Depending on your view if everything goes well you could get your capital returned after a few years of divvies, and at least several multiples of bank rate at the worst.
Without doubt, there has been circumstances that would have been performed better, but benefit of hindsight is never available when needed. What development business doesn't have problems - the fact is the management and staff are not dip-sticks. some maybe, but what organisation doesn't have one or two. On-balance, no major stuff-ups, took necessary speedy action to fix the JORC inspired sp plunge, and took the advice given at the time to take M&G on-board in a big way.
Same as the speed of buying a trainset and port access. That is the benefit of a one major man band, the downside being it tends to be a lightning rod for those suffering tall poppyitis.
After assessing everything, will CDU make money? The so-called cheer squad is convinced, the only real question is how much. The down rampers ould have you believe it will self-immolate tomorrow afternoon at worst, or go broke when they find no economic resource.
There is enough info around to build your own spreadsheet, and if you ask nicely someone here will probably send you one to play with.
CDU Price at posting:
$3.45 Sentiment: Hold Disclosure: Held
