I haven't seen their opinion on CSE of late but I agree it is a...

I haven't seen their opinion on CSE of late but I agree it is a bargain at these levels.

smm's comments the other day are extremely wide of the mark and as he states:"are his own opinion". For someone that presumably owns 1 mio shares in the company, it shows a lack of understanding of markets at present.

1. Copper is not in a long term down trend. The price of all commodities are denominated in US dollars. The US Dollar is exhibiting some strength at the moment which may last for 18 months or so. After that time it will start to depreciate again as the US has structural problems that I doubt they will tackle. Therefore the price of commoditites drop as the Dollar strengthens.

To date Copper has retreated 15% but the Australian Dollar has retreated 13% in the same time, therefore the drop to CSE in real terms is 2%. Hardly tragic I would suggest.

The Chinese have a large requirement for most metals and Copper is near the top of that list. Even if there is a significant pull back, look for them to start buying it again after the Lunar New Year in Feb next year.

2. The previous metrics for CSE feasibility study had the following prices; Copper $2.50 - Gold $600 - Silver $8.00. The forward curve for Copper 27 months out is currently trading at $3.20. Investment Bankers aren't that smart on their own and they will probably use a discount on the above $3.20, maybe $2.80. At this price, Einasleigh/ Kaiser Bill are profitable from my modeling, this will enable the other areas of Chloe, Jackson etc to be exploited as well. Chloe, Jackson etc are profitable (again from my modeling) at price levels significantly lower than the current Zinc and Lead prices.

3. Financing may not necessarily come from a Bank!

4. Current price is a symptom of market fear not information. Buy on fear/ sell on elation.

5. I own plenty CSE and will buy more if the market becomes completely decoupled from reality. I would suggest we are almost at those levels.