cfe and ts in paydirt magazine

CFE and TS were featured in PAYDIRT for August (pp26-29). It came out a few weeks ago. Apologies if it has already been covered on here, but a couple of things TS said stood out.


In regard to the 30% stake in Marampa iron ore project:

TS: "All the infrastructure is in place. There is some iron ore in carriages on the track, there is some stockpiled at the mine and some stock at the port. That ore is valued at around US$600m... We only paid scrip and cash to a value of US$200m..."

And, "by Christmas we will have a buyer for the whole lot. We are looking for about US$400m"

My comment: Bare in mind CFE is only capitalised at A$202m with cash backing of a third of that...

On the acquisition of CopperCo/MinSec:

TS: "In their heyday the two companies were capped at $1 billion. Acquiring the debt meant we could pick up the entire lot for $120 million and receive all the additional tax benefits."


Clearly, the strong cash position CFE was in at the bottom of the GFC had enormous value and buying power. As the world economy, credit and metal markets recover, the full extent of how cheap these bargain were will become evident. Based on the current CFE share price, that realisation is still along way off for some...

Y