It was unlucky timing if you think the announcement was positive. That's not clear to me.
1. The financing deal we knew was done, just wanted terms, they gave none.
2. It is a very moot point whether the share consolidation is positive. Concentrate on the mining I say. I remember a few months ago GDO said they were concentrating on the mining not the share price. The share price is up over 60pc since then in a down market.
3. The sudden addition of "2009 real costs" of $61 for Penumbra seems to undermine many forecasts to me.
4. The BEE thing is mixed. My thoughts:
a. Why no separate press release, explanation? There's been a press release for every little thing in the past. This is pretty big.
b. Bringing forward $20m to $30m in cash is good but it does seem to be costing a fixed $5.4m which is over 25pc of the lower number.
c. There have been complaints, including from me about lack of director buying in the past. The shares are again down and we get a founding director and shareholder effectively selling out at up to 20pc discount to the current share price (that discount includes the $5.4m CCC shareholders are giving him).
I wonder if Mr and Mrs Buthelezi will reinvest and of their new wealth in CCC shares.
d. Absent a press release, we rely on the spin from those close to CCC. They seem to be saying the new BEE will fund future development. That would be big, 26pc less funding that CCC has to come up with for future projects, including Dewitt. But CCC hasn't said that as far as I can see? Has it it come from the company? If it has, why tell a few individuals and not the market? To take it a step further, and looking at wednesdays 10pc share price rise, if people were given detail of the BEE deal, WHEN were they told?
CCC Price at posting:
51.0¢ Sentiment: ST Sell Disclosure: Not Held
