re: re:lots of seller why bother 40c close and against the zinc...

re: re:lots of seller why bother 40c close and against the zinc market, nice bounce by XAO aswell. Lets hope CBH can hold early support at this level next week.

The higher CBH SP goes up the greater the propensity for TRK holders to sell. TKR level just shy of 70% as of yesterday.

Needle, by my reckoning the plan in the CBH presentation in May has since changed, and I stand by my comments that the max mine throughput is 1.2Mtpa.

My reasoning?

Mill Throughput is 1.4Mtpa and granted page 15 of CBH presentation actually outlines a phase III expansion up to 1.4 in 07, but I suspect it's been pegged back to around 1.2 due to mine design issues, hence the comments made in the latest Hartleys report regarding the extra .2Mtpa from Hera and their assumption (perhaps conservative) of 1.2Mtpa.

Also note that 1.2 (or current full production) is the milestone target as the second silver payment trance is payable when this is reached for 3 concurrent months.

One thing I've noticed with CBH is that you need to read between the lines with CBH announcements and also rely on Hartley reports for clarity. Their latest qtrly and the infamous "5% increase" case in point.

Hopefully Hartleys have given CBH management a rocket over this and it won't happen again!

Avagoodweekend