CUF - A Bright Future For Shareholders, page-49

Solid write up on CUF’s current position and prospects.

CUF article
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Here are the best performing ASX small cap stocks:

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ADD	Adavale Resource Ltd	0.023	28%	3,001,059	$9,182,622
AHN	Athena Resources	0.011	22%	5,352,982	$7,834,208
AYA	Artryalimited	0.49	29%	30,348	$23,861,539
BMO	Bastion Minerals	0.049	26%	4,820,017	$4,091,747
C1X	Cosmosexploration	0.38	41%	3,639,935	$6,750,000
CUF	Cufe Ltd	0.023	28%	10,567,056	$17,390,023
DCX	Discovex Res Ltd	0.004	33%	500,000	$9,907,704
EDE	Eden Inv Ltd	0.006	20%	6,850,296	$13,656,369
GCR	Golden Cross	0.008	33%	54,469	$6,583,537
GLA	Gladiator Resources	0.02	18%	1,434,813	$9,080,888
IMB	Intelligent Monitor	0.13	18%	77,370	$14,377,032
KSN	Kingston Resources	0.13	18%	1,340,069	$45,721,902
KWR	Kingwest Resources	0.05	19%	1,676,913	$11,832,526
LML	Lincoln Minerals	0.017	148%	19,031,505	$3,941,168
LYK	Lykosmetalslimited	0.105	17%	35,227	$5,616,000
MGG	Mogul Games Grp Ltd	0.0015	50%	1,000,000	$3,263,441
PR1	Pureresourceslimited	0.415	34%	580,073	$7,796,503
RBR	RBR Group Ltd	0.003	20%	1,950,096	$3,516,845
RLG	Roolife Group Ltd	0.012	20%	4,438,132	$7,022,309
TIA	Tian An Aust Limited	0.3	20%	20,000	$21,652,208
TMB	Tambourahmetals	0.135	17%	273,860	$4,737,149
TNY	Tinybeans Group Ltd	0.26	18%	114,546	$13,504,800
WBE	Whitebark Energy	0.0015	50%	1,250,000	$6,464,886
WFL	Wellfully Limited	0.02	33%	321,384	$5,867,223
WR1	Winsome Resources	2.14	18%	4,749,570	$256,059,478

The biggest winnerCuFe (ASX:CUF) has today pushed the restart button on the small but high-grade JWD iron ore joint venture in the Pilbara, which shipped first ore in October 2021. Prices are now up ~50% from when mining activity was suspended, just one year later.

CUF says first product is expected to be ready for haulage to port by the end of January and, to protect itself from future price volatility, it is building a hedge book to cover future sales.

“To date positions have been taken, basis March quotation period, with 10,000t swapped at US$120.70 and 20,000t of collars entered with a floor price of US$110/t and ceiling price of US$129/t, basis 62% Fe,” the company says.

In addition to planning the restart of mining, the JWD site team has continued to recover high grade material from a waste stockpile on site, crushing and screening it for trucking to port.

A further 8-10,000t of this material priced at US$116.50/t is expected to be loaded next week on a vessel shared with the neighbouring C4 project.

CUF is also contributing a parcel of 20,000t of lower grade fines product to a joint ship with C4, which will load during February.

The company has negotiated a US$2m prepayment facility with its JWD offtake partner Glencore to assist in funding the working capital associated with the ramp up.

“It’s pleasing to see the iron ore price back at levels that allow mining to recommence at JWD,” CUF executive director Mark Hancock says.

“With the relaxing of Covid related restrictions expected to drive economic activity in China and continued strong demand for our product from SE Asia we are optimistic that 2023 will offer a period of attractive pricing for JWD iron ore.

“This combined with an improved cost base arising from falling fuel prices lowering sea freight and road haulage cost and improved stripping ratios favourably impacting mining costs means Cufe is well placed as we move into the next phase of JWD operations.”

The $20m capped junior stock is up 140% so far this month. It had $4.1m in the bank at the end of September.