"Compass Resources’ (CMR) has lost its lustre – we think temporarily. Its first attempt to become a producer was delayed, and reflected in a near halving of the share price. The company has broadened its management ranks, hopefully to good effect. New mining projects frequently suffer false-starts, and subsequently move onto success – production requires different skillsets from exploration. CMR’s very valuable orebody hasn’t gone walkabout. On the contrary, significant drilling – 12,000m in this quarter alone – is likely to add considerably to the resource estimate. And Chinese joint venture partner and bankroller, Hunan, is equally unmoved, recently approving CMR’s 2008 feasibility study programme and budget for the Sulphide project. Hunan is funding the project to earn a 50% interest. CMR is in the sin-bin but that’s only a temporary disqualification."
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
