Australia's largest stock trading and investment forum Australia's #1 stock forum

CDU

0.00%

23.5¢ cudeco limited

Cap raise incoming? - AFR

1 Last

Share
Profile

Follow
hottuna

3,053 Posts.

2

23/10/14

09:15

Post #: 14167399
Share

http://www.copyright link/p/opinion/cudeco_chief_mccrae_gets_short_shrift_2Z5cAzdrjpmHG1N88w6GNJ

CuDeco chief McCrae gets short shrift from investors

CuDeco chief Wayne McCrae has been sounding out investor appetite in Asia for another potential fresh funding round, sources told Street Talk.
The copper explorer could look to raise $50 million to $100 million to help complete its Rocklands copper project in Queensland by the latest target date of March, and secure working capital. CuDeco also needs to pump some life into its dwindling cash balance.
The possibility of a secondary Hong Kong or Singaporean listing is said to have been dangled in front of Chinese and South Korean investors in recent weeks, in an effort to ramp up interest.
A handful of US hedge funds are believed to have offered McCrae a convertible notes deal, which he rejected.
Back on home soil, shareholder discontent is growing. Local institutional investors have been fleeing the stock over the past year. CuDeco's market capitalisation has retreated to $330 million from about $1 billion last year. McCrae is considered a bit of an enigma, with some shareholders calling him a “magician” when it comes to raising cash. But he may have his work cut out this time around, in an unforgiving market for mining hopefuls.
At June 30, the group had $9.2 million left in the bank and had spent $US45 million ($51 million) of a $US65 million debt facility dedicated to Rocklands.
CuDeco is chewing through cash and paying some of its suppliers in shares. Its annual report said another $81 million was needed to commercialise Rocklands, which includes a mine and processing plant.
Some shareholders have once again taken umbrage at McCrae’s remuneration package, which was $979,000 last year and $1.22 million the year before. The explorer lost $4.54 million last year.

Expand

____________

Clearly

At June 30, the group had $9.2 million left in the bank and had spent $US45 million ($51 million) of a $US65 million debt facility dedicated to Rocklands.

Expand

is wrong (the loan was drawn down post quarter end), but what about the cap raise?

CDU Price at posting: $1.41 Sentiment: Sell Disclosure: Not Held
8 Upvote

0 Great analysis

Reply

Top Stories

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

PXX

Polarx discovers thick sulphide mineralisation at Alaskan Cu project

ASX200 dives as inflation clocks in at 4% – higher than 3.8% consensus

PGD

Peregrine extends high-grade gold shoot, sniffs anomalism at WA's Tin Can

IBG

Ironbark eyes lithium and niobium opportunities with 7 new Brazilian projects

There are more pages in this discussion • 100 more messages in this thread...

1 Last

Add CDU (ASX) to my watchlist

Cap raise incoming? - AFR

Top Stories

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Polarx discovers thick sulphide mineralisation at Alaskan Cu project

ASX200 dives as inflation clocks in at 4% – higher than 3.8% consensus

Peregrine extends high-grade gold shoot, sniffs anomalism at WA's Tin Can

Ironbark eyes lithium and niobium opportunities with 7 new Brazilian projects

Featured News