and i thought bergen was a joke..., page-25

Whatever the raising price (assuming its not simply to keep the company solvent on a day to day basis) is the new 'fair price' for CCC. Its what the directors think is a fair value for the assets they currently hold. No matter what they say, no matter what their PR team unleashes, the simple fact is, if they are willing to sell 25% of their company for 8 or 7 or whatever cents per share, that is the only true valuation tool that the market will listen to.

If you owned 4 units on a property and sold one for 100k, you couldnt then go and say that the other three are worth 400k each. If you sell 25% of your shares for 8c you cant say the other 75% should be worth 18,28 or whatever CCC 'believes' their company is worth.

When push comes to shove, actions speak a lot louder than words. Its not the 'progress reports' that show how valuable CCC is, its the willingness to accept the current prices as a level where capital can be raised. The CCC management should be offended by the share price and call off any non-organic expansion until the value reached a level at which they believed the company was at least 'somewhat near value'.

If CCC's SA and Botswanan assets are truely worth 400 million dollars, the dilution at this level means any Colombian acquisition has to TEN BAG, thats right TEN BAG in value before the current holders see ANY VALUE FOR IT WHATSOEVER.

Just to really hammer home that point, CCC NEEDS A TEN TIMES GAIN FROM COLOMBIA JUST TO BREAK EVEN.

I'll be completely honest here, I HOPE the raising is for a colombian expansion and day to day working capital, but I would harbour a guess that CCC's mines are barely breaking even and they cant pay their top heavy management and consultancy fees... I would hazard a guess that CCC is essentially insolvent without this 10 million.

I could be completely wrong, but unless CCC are going to change their reporting style, open up their books and inform shareholders as to what is ACTUALLY happening financially with their company, there is no way to prove this point correct or incorrect.

I truly, truly hope I'm wrong because Ive met some really good people by posting on hotcopper, primarily on this CCC forum and I know some are still invested. They would be the ones who lost out if this does go pear shaped, not the directors...JB for instance, has other jobs anyway, DT will find work in no time, or could happily retire off the hundreds of thousands a year he's been earning at the shareholder's expense by raising capital at these prices.


I havent done heaps of research in the past 6 months on CCC, just cursory glances here and there so take what I say with a grain of salt. If you disagree with what I say, I have no qualms in saying that you are probably correct and that I am probably wrong. The basis of this post is much more market 'feel' or experience than a concrete logic.

I'm sure pisces will appreciate me putting in an 'old wise head' post with a cautious view based on feel not logic... My god how I used to shoot them down 18 months ago lol.