At the end of the 2012 financial year the Company is in great shape; ? Just 187m shares on issue ? $125m cash at hand ? No debt! ? Owns 100% of its mining fleet - mostly purchased during the GFC Financial Crisis ? Mining and Infrastructure Corridor Leases granted for 30 years ? Environmental Impact Statement and Plan of Operations approved ? Compensation agreements with the landowner and the Cloncurry Shire Council in place ? Native Title agreements in place ? $30m already paid towards 3mtpa Process Plant Major components ordered including ball mill, high-pressure grinding rolls (HPGR), primary and tertiary crushing circuits, alljig® gravity jigs and various ancillary components - all currently under construction. ? Rail-load Facility in Cloncurry - access to national markets secured Joint memorandum of understanding with Xstrata Copper and Minmetals Group for the joint development of the Company’s Multi-user Rail Load-out Facility, significantly reducing CuDeco’s up-front development costs. ? Ship-loading Facility at Port of Townsville - access to international markets secured Lease signed with Port of Townsville Limited for 1.506 ha of land at the Port of Townsville, allowing for the construction and operation of a bulk materials receipt, storage and export facility. Development Permit received from Queensland Department of Environment and Resource Management (DERM) for Ship-loader and Concentrate Storage Facility at the Port of Townsville - currently under development. ? Significant resource inventory based on over 340,000m of drilling - discovery costs ~1.5c/lb 30.3mt @ 1.7% CuEq (0.8% CuCoAu cut-off) Measured and Indicated resource 97.9mt @ 0.96% CuEq (0.4% CuCoAu cut-off) Measured and Indicated resource 272.9mt @ 0.62% CuEq (0.2% CuCoAu cut-off) Measured, Indicated & Inferred resource See full table details of the above resources in Competent Person Statement at the end of this report ? Mineralisation commences from surface - low life-of-mine strip ratio (approximately 3.16 to 1) High-grade supergene zone (native copper and chalcocite) - accessed in initial years to maximise earnings ? Exhaustive metallurgical work completed - high metal recoveries achieved Significant time, effort and expenditure has been allocated to metallurgy, resulting in high metal recoveries and premium concentrate grades. ? Low mining and processing costs CuDeco expects to maintain one of the industries lowest percentile mining and processing costs, at just 81c/lb ? Off-take agreements in place ? Development activity advancing Site activities well advanced, with construction of major infrastructure currently underway. ? Located close to major regional Queensland township - reduced development costs Workforce based in Cloncurry (~15km from mine site) - access to existing roads, rail, highway, airport, shops, healthcare, etc.
CDU Price at posting:
$4.67 Sentiment: LT Buy Disclosure: Held