Cap raise incoming? - AFR

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23/10/14

09:15

Post #: 14167399
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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.

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____________

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.

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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
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0 Great analysis

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Cap raise incoming? - AFR

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