finance announced, page-35

woody,

I'm talking about paying off the principal too, not just the interest. Regardless of the interest payments, the entire loan has to be paid off within 12 months (from 18 to 30 months after first drawing down). This is quite a steep repayment schedule.

If the facility is fully drawn down (which is not guaranteed) it would be approx US$9M per month, correct?

GFM,

Hopefully you are right about the DSO but I have some doubts the volume of sales will be enough as much as some are anticipating. It's hard to know for sure because CDU has been so tight-lipped on the economics of the project - we don't even have a Reserves statement yet, let alone a BFS. A Reserves tonnage of NCu/DSO would be handy here.

I can't help but wonder what your interest in CDU is ????

I have plenty of interest in CDU and it's been on my watchlist for many years. I'm a geologist, a Queenslander and I have done field work in the area, so I'm naturally interested in the deposit - and I like to see a fellow Queenslander making good (I know he was born in WA but we'll claim him like a good State of Origin player!).

I also hold AOH which has a similar deposit nearby (but unfortunately no WM behind it so it's nowhere near ready to dig - I guess that's what happens when you put a bunch of Sandgropers in charge!).

I know your intent with that comment was to insinuate I have some nefarious motive in posting on CDU (no doubt one of the dreaded shorters!), as the standard ad-hominem that tends to get launched on those perceived as having anything that's not overwhelmingly positive to say on CDU, but I'm going to have to disappoint you there, sorry! My interest is only academic (and a little bit parochial) at the moment.

One thing I do passionately believe in on HC is balanced points of view, as I don't think unchallenged optimism does anybody any favours except the speculators (who are no better than the shorters IMO). I'm interested in companies that build sustained value, not flash-in-the-pan type stuff. That requires consideration of both of positives and negatives. If I come across as negative towards CDU, that is because there is so much overwhelmingly positive posting towards CDU that it's the contrarian point of view that needs presenting!

So back to my original point - if the facility is fully drawn down over a period of 12 months (and I think there is at least a fair chance of that given the outstanding capex requirements) then CDU will have to repay approx US$9M a month for 12 months at a time when the first cashflow is coming in, correct? And this could potentially endanger the anticipated dividend schedule if they have to pay it out of early mine cashflow.

If that is the case, maybe an equity raising (depending on SP at the time) to pay off the debt would be a viable option.