Completely agree with your sentiment Jasmine and sorry if my...

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gottalove

19,152 Posts.

1816

07/07/21

16:08

Post #: 54347891
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Originally posted by JasmineTea: ↑

It is really interesting - as what is the basis for a comment like this.

I look around at other copper companies:

1. Junior (has a permit but not found anything commercial yet)

2. Found something commercial / maybe has completed a PFS or DFS / not yet funded or permitted.

3. Large operating copper company (OZL.ASX - as an example).

We clearly do not fit into category 1 or really 2. Reality is CYM has:

- cash equity component to develop asset ~ circa AUD 50 million + cash on balance sheet - this can match another 50 million of debt to deliver an operating project as per company presentations, announcements and plan forward.

- pretty clear production as well as ramp up to a greater level of production.

- Assets still to be developed at Maroochydore / Nandie - this does not include IGO giving us a free carry on their exploration success or failure.

- Excellent team both in terms of capability to deliver (Indonesia) in Australia (much easier) and provide oversight.

- Permits are all on track final 2 coming in with an existing mining license at Nifty.

So if we look at:

a. OZL ~ market cap AUD 7.4 billion (note on a fully diluted basis both OZL and CYM would be higher so let us just assume this is net neutral for now)

b. CYM ~ market cap AUD 0.15 billion or approximately

so OZL is presently valued at 50 times CYM. or worth 50 CYMs.

So how do we hit OZL production - well clearly we need to be producing and same volume as OZL. So where are we today with regards to this?

Going to assume here both OZL and CYM have byproduct credits of silver / gold etc and no include this in the below analysis.

OZL is producing 2020 97k tonnes of copper. But... these mines are all mature - increasing in cost and decreasing in volume production each year.

CYM = 0 today. But.... CYM is planning to produce 20k tonnes of copper.

So on a simplistic (yes super simple) view of the world CYM vs OZL differential is 5 times.

So the gap is 45x (50 times less 5 times) in terms of potential valuation uplift to get us to parity with OZL.

So I like these odds vs odds of failure for CYM future valuation.

Each day I am buying a large (small in the scheme of things) block of shares to keep averaging in.

I like the story here and the people running the company.

Do not need any dragons with fairy tale story this is a straight road towards production with a competent team managing it all.

Sorry for the long post....

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Completely agree with your sentiment Jasmine and sorry if my post was lost in translation mate.

I was simply having a head shaking dig at the market, for failing to correctly identify what we are sitting on.
To be selling at 26c, suggests to me that those offloading would be better off going back to their play lunch.

Having said that, it could well have been nothing but a superbly crafted accumulation. If so, they certainly got some to fall for it.

Expect 'sellers remorse' to hit with a vengeance, in the coming days.

CYM Price at posting: 26.3¢ Sentiment: Buy Disclosure: Held
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Last 4.0¢		Change -0.001(2.44%)		Mkt cap ! $60.98M

Open	High	Low	Value	Volume
4.1¢	4.1¢	3.5¢	$276.7K	7.355M

Buyers (Bids)

No.	Vol.	Price($)
3	387869	3.8¢

Sellers (Offers)

Price($)	Vol.	No.
4.0¢	3460	1

View Market Depth

No.	Vol.	Price($)
3	387869	0.038
2	156756	0.037
5	1505624	0.036
8	949070	0.035
10	778102	0.034

Price($)	Vol.	No.
0.040	3460	1
0.041	552165	6
0.042	1078895	10
0.043	768868	4
0.044	1247158	8

Last trade - 14.39pm 03/05/2024 (20 minute delay)


Last 3.9¢		Change -0.001 ( 4.88 %)
Open	High	Low	Volume
4.0¢	4.0¢	3.5¢	5006187
Last updated 14.43pm 03/05/2024 ?

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Completely agree with your sentiment Jasmine and sorry if my...

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