For many years now, most posters here have been waiting for the completion of the mine plant so production can start. There have been many deadlines that have come and gone. 2014 was meant to show us the start of plant commissioning.
The mine is the focus as real mine production means there is concentrate coming out the back end and it can be sold for cash. with the right management, cash can be earned at a profit and the CDU shares will have a corresponding value.
At this point, very few of us know when the mine may be ready for production. Word from the AGM suggested that there is 5 months of work to do on all the electricals. Does that mean the mine will be ready for commissioning about mid this year?
Over the last two plus years there has been much posting about early DSO sales to gain early revenue. Such regular sales have not yet started and there hasn't yet been early revenue that is regular as a result. It seems that the ore sorter is needed for this to operate. Will the latest ore sorter be ready for operation in the near future?
Clearly cash is needed still to get to the point of a cash generating mine operation. Will the capital raising in progress produce sufficient to get CDU through to mining?
In theory, all of this should become evident in 2015.
That Hong Kong prospectus ought to be interesting as it in theory should answer many of these questions. Its not a simple undertaking to get that out, so its most likely a few months away yet.
Once there is regular mining and cashflow, punters will want to know what to expect profitwise. The DFS would have helped there, but maybe the new prospectus will provide that info. What dividends are to be expected? Each 3B states that there "are no plans to pay a dividend at this stage". Once production starts, an early priority would be to repay the loan which would need to take priority over any future dividends.
Clearly the copper price will affect revenues and profits, so thats another interesting factor that comes into the equation for this year.
There are plenty of variables on the go and lots of unknowns, so there is much to discuss still before the answers become known.
The sooner revenues start to flow, the better the share price may look. Should we still expect the unexpected this year?
Best of luck to all with their positions!
CDU Price at posting:
$1.37 Sentiment: Sell Disclosure: Not Held
