repost of yesterdays post
on URANIU thread. Worth revisiting in light of Wednesday's FREO presentation and todays EGM. What mutineer voted 3,000 shares against ! Mustave misplaced his reading glasses when filling in the form haha. Another polymetallic brick in the foundations toward New Rome and the Golden Fleece!
Something to do I guess to pass the time. All personal assessment of course. Said before indifferent ways as we move steadily toward mid tier valuation methinks. I call "mid tier" about a coupla billion bucks ........ for starters. U know, about size of one-product wonders still not producing like PDN and cuz FMG. They dont even have the luxury of a supermarket in their jungles.
Something too about Hunan Province on CNBC this morn. Apparently USD 1.5 billion bucks is going into expansion of non-ferrous metal production and advice given is that metalcos in this region are likely to benefit greatly and should be considered as good investments. Well we know which is BIGGEST non-ferrous metal producer in this region .... HNC .....in whole of China in fact. Wonder where they are gonna get their metals from.
HNC is listed on HKG exchange btw if u wanna delve into their credentials. Recent IPO and currently at about double IPO price methinks. They were suspended for 3 days pending their announcement of the CMR deal and spiked 10% on return to trading. Thats like saying BHP spiked up 3 bucks on news re a JV ! I also note HKG shareholdings in out top 20 aside from HNC's new addition btw.
I wouldnt want to be short in CMR at ANY time from here til fair value maturity irrespective of prevailing market conditions. Thats like taking a triple dose of viagra ahead of a private party with three nymphs half your age methinks. Real test for your heart haha.
Praise Zeus. Maybe i should be praising Aphrodite as well :)
IMBOOC
-------------------------------------------------- Subject australian says cmr is next producer Stock Code URANIU - Uranium U 92 Posted 28/07/06 02:43 Posted by olympian IP 220.237.xxx.xxx Post #1175654 - 81 reads In Reply to msg #1175289
Check out the CMR website for their FREO presentation 2nd day. Look at all those mellow yellow targets subject of massive drill program about to begin.
First entree at Mt Fitch has just come up with initial JORC 14 mill lbs and likely much higher as open extensions are tested next. Could probably be a producer within 2 years if the politicos are serious, cos able to share base metal oxides plant infrastructure scheduled to come on-line early next year.
Oz's first three U-mines also lie dormant on CMR ground amongst the other glowing hotspots and will also be subject to resource definition in due course ..... only past mined down to 100m. In fact the whole Rum Jungle Uranium Field is now the focus of a JORCing program about to begin.
Personally expect CMR to emerge at least as Oz's #3 yellowcake bakery behind BHP and ERA and should be next new Oz producer. Yet current market cap doesnt even yet reflect the fair value of its emerging base metals oxide STARTER project scheduled for early 2007 start !
Alf Field calls CMR a "free call option on uranium" in his recent global spruik. Jim Dynes should soon begin to get the message.
Uranium is only one primary product in CMR's polymetal supermarket ... Copper, Cobalt, Lead, Nickel and likely later Zinc, Silver (with Gold, PGMs, Iron ore, Magnesium on the second shelf atm).
In fact its an Ozzie looking more like an emerging mini-BHP with multiple plants likely, producing from multiple source feeders all within close proximity in the Rum Jungle Mineral Field which enCOMPASSes the Rum Jungle Uranium Field.
Has only 123 million shares fully diluted and getting tighter by the minute with most shareholders now realising its extreme upside likelyhood and coincident with an emerging resources megabull. Look at the recent market action. lovely chart ..... in a steady power trend channel (logscale) which Guppy recently declared on CNBC is in steady uptrend doing its own thing without showing any signs of bubble characteristis.
Hunan Non-Ferrous Metal Corporation deal (under due diligence) will also mean capex and offtakes secured for base metals, for which it will be 50% free carried and left with NIL debt and around 100 mill bucks CASH in the kitty. This CASH is primarily aimed as capex for CMR's 100% owned N.T. URANIUM assets development as the politicos allow.
All of above is in my very biased opinion of course. If you are serious about new Oz Uranium, you might decide to more closely scrutinize the current rumble coming outa the jungle ...... the Rum Jungle Uranium Field of the Northern Territory of Australia.
I aint an advisor, just a very very happy long term investor in this locally ignored gem ......... but one which has not escaped the radar of two US mega-funds and China's #1 producer of non-ferrous metals, each of which now own about 10% of CMR's register, and the latter keen to solely fund up to a poss billion dollar base metals project for 50% share.
Best of all is that CMR retains 100% of the URANIUM assets.
Current market cap is around 450 mill bucks. Based current AUD prices for base metals and modest expectations for Uranium price, it aint hard to imagine an annual earnings figure around same as current market cap by end of decade when maturity of its planned production streams is envisaged.
CMR should also begin paying healthy dividends from its base metal oxides starter operation from next year, given nil debt and current cash position. Divvies would then be expected to expand by multiples as Uranium and Sulphides projects came on stream.
It might be easy to compare "fair value" figures with peers .... if there were any. Who do you compare with? One-product future producers like FMG or sovereign risked PDN, both at around 5 times CMR's market cap? Or OXR at almost ten times CMR's market cap when their earnings are likely to be eclipsed by CMR's future likley? Think I'll let my kids worry about that one cos CMR is likely to be producing from the Jungle after I've departed from this earth haha.
Before you think me a spruiker or a dill, go check it out. Love to hear your views afterwards. For now, hard for me to stay complacent with the program in progress and scaling up.
