In 2011, CSD's share price shot up to 30 cents on sentiment only. They had no PFS, no plant and certainly no production. After a few changes in directions, CSD is now in a position of strength, however sentiment is not on its side... yet.
Unlike many of its spec friends, CSD is now not at the whim of the markets. It has a positive cash-flow (as described in the Independent Expert's report), something which most companies at its current market cap would die for.
As reconfirmed by the latest announcement, CSD is on track to produce:
- 25,000 tonnes Zinc metal
- 2,500 tonnes Copper metal
- 6,000 tonnes Lead metal
- Containing +209,000 oz Payable Ag
We are talking about revenue significantly well above the current market cap. By my calculations, using the 3-month LME prices and in Australian dollar terms, it's between $70 million to $80 million.
Obviously, the actual price gained from the sales could be different but until the March quarterly is out, all claims are just guesses, some being more informed and better researched than others. (I will say this, CSD did not go bankrupt last quarter like some suggested.)
CSD only has 1116 shareholders (see 2014 report), which for any public-listed company is fairly low. I believe once more people hear about it, then more interest will come our way and, us now being a producer of zinc, etc, that interest should have reasons to invest.
However, regardless of what the company says and does the one thing that commands all is sentiment. BHP sitting at $26 and AGO at 14 cents the other week says it all. Miners are being treated like they have the plague but it will turn and when it does, CSD holding zinc, copper and tin deposits will not disappoint.
I ask you this, what other company has a positive-cashflow operation with such a small market cap? Add the risk-free (To CSD) Wanguo exploration program and the skies the limit.
DYOR as always.
