Hi Theon, IMO the Reasons why share price is at current levels...

Hi Theon,
IMO the Reasons why share price is at current levels

Snow peak Mining acquisition of Kagara Assets
A US$40million acquisition deal was completed on January 29, 2013 and SPM took over the mining assets in Northern Queensland from Kagara Mining Company. Kagara’s asset in the Central Region includes Baal Gammon, Balcooma, Einasleigh, Maitland, Mt Garnet project and Mt Garnet central processing plant.

Kagara went into voluntary administration owing $95 million to more than 830 creditors.
The base metals miner blamed plunging zinc and copper prices, rising production costs and a strong Australian dollar for its poor financial performance.

While the Aussie dollar has fallen considerably, the market sentiment for base metal prices continues to be against large scale miners ( CSD being a small scale producer with ONLY an estimated positive cash flow for March QTR ) and like has been said before , the costs of production is the key to earnings and profits as revenues does not equal profits.


Sources say that almost nine months after the collapse of the one-time market darling, creditors still have no clear picture of how much is owed because Taylor Woodings is still assessing proof of debt claims. Also unclear is how much of Kagara's debt is effectively owed to itself, through inter-company loans from the parent to operating subsidiaries.


Now we have CSD selling off nearly 80% of their share capital to SPI ( Mr Tong) to acquire these assets and as of latest announcement CSD has clearly stated they NOW are in advanced discussions for raising funds, well before the DFS has been completed.

IMO
There has been very little transparency of any financial details to shareholders.
With a large majority individual holder, CSD is basically being run like a private company ( refer to remuneration packages, new management structure and no financial details regarding production to date )

The MOU as announced by CSD recently may still be months away from being finalised ( issuing shares to SPI)

IMO, I believe that any large investor would want to analyse the DFS before they consider investing in CSD.

DYOR