I think it is a bit like buying into a junior minerals explorer....

I think it is a bit like buying into a junior minerals explorer.

Firstly they identify a likely area and drill for some ore samples. The samples are assessed and confirm there is high grade ore, the market gets a bit excited.

Further drilling confirms that the site has a large body of ore worth a fortune, the market erupts as the dollar signs start lighting up in the punters eyes.

Then the company goes about the task of working out how to get the ore out of the ground and off to market, the market takes a breather.

As the reality of costing and red tape sets in the punters get toey, why can't they just build the mine and get on with it? The impatient one's start selling their shares.

Quarterly report after quarterly report gives the same story. There is a delay because of the EIS, we are held up by land title issues, the greenies have chained themselves to the trees, etc, etc etc. Even the patient one's are starting to lose their enthusiasm, the sp shows a steady decline.

The company gets all the final approvals in order and the sp stabilises.

Contracts are awarded, mine commences construction, revenue confirmed, institutions start to show interest.

First shipment of ore is sent to market, ore hits all time price high, institutions start to buy large holdings of shares, the sp goes up in multiples.

A mining giant comes along and commences a takeover bid.

CCE are at the beginning of the construction phase, the institutions are aware of what is going on but are waiting for the first ship load of ore to be sent to market.