Some interesting characters have joined the CMR thread of late. Some need to take a chill pill.
Challenging times ahead and most of us are frustrated with the performance of the company / our directors over the past few years.
CMR's tenement holdings in the RJMF has plenty of potential. The IGV model helps to highlight the potential only for what they have explored so far. For those that have been around on the CMR thread for a while we have shared a lot of information about the potential of the RJMF / RJUF field which the NT Govt has published.
Being realistic, the danger for us at the moment includes risks that might change the future:
* lack of available funds
* Borrowings to keep CMR afloat while the Oxide plant is commissioned
* No funding available to do more uranium or NSW exploration at the moment
* Lost investor confidence in the Board of Directors
* Credit crunch - lower metal prices - fears of global recession
* A directors resigning without much explanation
* An Aging Chairman
etc
The economic model for the oxide mine published recently by the company seems to be border line in the current market. This seems to be making investors nervous. The Board of Directors need to ensure that the company remains solvent through these challenging times.
Personally I am starting to think that a takeover might be a good thing for the company to save it from the unthinkable. It is unlikely that the Federal Govt would allow a HNC (Chinese) takeover of CMR, so one likely company with plenty of money might be OZL. If the current loans are converted to equity around current levels, then there would be roughly 200M shares. So a takeover offer around $1.00 to $1.30 per share might look good to lots of investors. These are just randonm thoughts.
Good luck all.
This is not investment advice. Please do you own research and make your own investment decisions.
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