Did some thinking about this one last night and happy for people to argue against my points as I know I am biased as a holder and want CHR to make a discovery. Below are my points. Maybe Im reading between the lines too much lol
1. Current market cap = $13m, circa $4m cash so an EV of $9m (very cheap).
2.8th June ASX announcement - 14 RC holes for 2,045m completed across Megabucks and Oldbucks. 36m of spodumene intersected although predominately weathered so no good.
3. 3rd of July ASX announcement - 10 RC holes for 1,663m completed at enterprise. CBYRC023 and CBYRC024 hit spodumene at Enterprise up to 22meters (5-10% visual spodumene, so not great).
4. 11th of July ASX announcement - We get the results from bullet point 3 and as expected results are not great (7m @0.96%, 5m @ 1.13%, 16m @ 0.65% and 1m @ 1.91%). In addition to this the first diamond drill hole hits 19m at 3-12% spod, again nothing too great and language in the announcements reflects this.
5. 27th of July ASX announcement - 24m of spod @ circa 20% spod has been intersected at Enterprise. Strike is reported as
200meters long, "which is typical in the region" and
"CBYD003 suggests the spodumene is increasing in both grain size and abundance with depth". To date 16 holes for 2,887m (RC and Diamond) has been completed at Enterprise. T
o date CHR has drilled 30 holes for 4,550m (1,663m at Old bucks and Megabucks and 2,887m at Enterprise). Language used in announcements to date while positive and trying to sell the company as all MDs and boards are required to do has not talked to any confidence in finding viable resources.
6. 5th of August - Shared on the CHR website the article Aiden did with Market Open, a few key quotes to note from that article
- "The team is excited and motivated having already drilled 8,000m" (note the increase from the 27th of July ASX announcement of 4,550 meters).
- "We are confident in a making a significant discovery at the Enterprise project, which has spodumene pegmatites intersections over 500 meters" and "the spodumene intersections at Enterprise gave us confidence in our exploration efforts". So the strike has increased from 200m to 500m and now the word confident is used for the first time.
- There is persistent market pressure to announce developments regularly. I wouldn't say I like announcing visual results. Its better to wait until you have the numbers before discussing them"
7. 14th of August - Steak sandwich Showdown interview shared on CHR website. Aidan talks very confidently about the Enterprise prospect and says we are a "screaming buy".
8. 24th of Aug ASX announcement - 63 RC holes for 10,009m and six diamond drill-holes for 1,915.16m have been completed over seven prospect areas. Now there have been multiple comments from people about the
cautionary note which talks about "hits are down hole and not true widths" etc and that maybe they omitted drill results,
I don't think this is the case, the e
xact same cautionary note was on the ASX announcements dated the 3rd of July, the 11th of July and the 27th of July. I think they have just decided to put this on all ASX announcements. Also as noted in bullet point 6 Aiden noted that he doesn't like to disclose visual results and waits for lab results.
I think the key point is bullet point 6, what results do management have from the drilling between the 8,000m completed by the time he does the Market Open interview vs the 4,550m announced to market on the 27th of July. We know they have hit 24m of circa 20% spod already, what else have they hit? Why has Aiden become much more confident in Enterprise? The strike has increased to 500 meters? He already mentioned he wont release results until theyre back from the lab. Guess we just have to wait....
(20min delay)