a chip off the old block , page-18

Folks let?s focus on the big picture rather than what individuals in cdu do, whether or not they are qualified and experienced for the type of work undertaken and how much they are paid.

To cut the story short the big picture is

1. JORC results came out in august, results were well below expectations, market was unimpressed and the sp tanked. JORC did not included NC;
2. CDU?s data room was opened to instos, potential bidders and financers (I think).. in absence of any firm deal with sinosteel with whom a MOA was signed earlier;
3. A group of insto investors (M&G)put their hand up and paid rock bottom price of $2 to take 10m. They subsequently bought more which pushed the sp to mid $4s. They stopped buying when their average cost was about $2.60 which they considered to be the value.
4. Meanwhile metallurgical studies are being carried out by the company which included NC nuggets (which were missed by the RC drilling). A small sample of 50 tonnes show yield of 4.37% cu compared with about 1% in the jorc. The 4.37% is the expectation mooted by the company in its asx reports
5. We are now waiting for the results of the much larger sample.


I only have some simple questions:

1. After being exposed to the data room why did M&G paid only $2 for their initial parcel of shares and subsequently acquired 15% of the company for an average price of only $2.60. Is this their view of the value after visiting the data room?
2. Why isn?t there any interest from any other instos at the current prices or even when the sp was $2 a few months ago.
3. What happened to other visitors in the data room. They didn?t like what they saw?
4. Why has the sp dropped by 20% in a month whereas the rest of the resource sector and cu prices have headed north during Dec/Jan. (Pls don?t blame the bots, predators and manipulators).


I am a holder and not trying to downramp. I just want simple answers. I don?t own any shares in Sandfire Resource (SFR) which has been compared with CDU in this forum in the past. I will not dwell on its sp compared with cdu. However, I stumbled into an article in the AFR on Thursday stating that there is no shortage of banks lining up to get on SFRs funding requirements even without the completion of BFS.They have been impressed with what they have sen in SFR. SFR may not require any further dilution because of bank finance.

Listening to what WM had to say over the last few years, I would have thought the banks would have had a similar attitude to cdu!