my two bobs worth

This has been building up inside me for years now, so I will take my time and explain my consistent negativity towards CDU and the reasons why my CDU valuation differs greatly from the cheer squad.
At times I have been like a troll towards CDU, but all my posts have either been an attempt at humour or an attempt to rein in the euphoria of the “cheer squad” and to encourage realistic analysis of known facts. What one is not told can at times be more important than what one is told.

Statements that have appeared in company announcements such as “on schedule and under budget” have made my blood boil. At no stage has a detailed budget or schedule been outlined to the general marketplace ie BFS, DFS is there an agenda? I do not know!
Most of the queries I have with CDU centre on the JORC, and the consistent use of copper equivalent in resource statements. The company purports to be ‘the new force in copper” yet it still seems to want to make a buck on anything except copper. (at least if you read some of the posts here on HC…………..what was the last one? Hafnium or something)
IMO, a mine needs 10 years of good grade primary product ore (in this case copper sulphides) to justify stand-alone tactics. Anything else is a bonus. Why have we not seen the CDU copper equivalent resource converted to a reserve, along with all the economics that go hand-in-hand with the conversion? EXS had similar copper grades and tonnage to the 30mt JORC at Mt Margaret, and Xstrata was only willing to pay $175 000 000 for the dirt. For whatever reason the similar sized deposit had problems, perhaps it was metallurgical issues. Xstrata had an 11mt plant and all the infrastructure in place. Hope Rocklands isn’t as complicated or unique. Another example being AOH’s Roseby which has a similar overall JORC but much less market cap, and as some posters have pointed one issue is the native copper and the negatives associated with processing and recovering it? But now I hear the ‘cheer squad’ screaming that the JORC is wrong. Let’s say it is wrong. I can understand that any mechanism used to determine averages has room for error. I have also worked in mines that have nuggetty resources where the ore body is not regular but contained in sporadic pods (Plutonic, Burnakarra, Bronzewing)
But let’s say the JORC is out by a massive 300%. Of course to the benefit of the long termers. i.e. 300% more metal than the supposed best resource model in Australia predicts, and despite the hundreds of kilometres of drilling that the company proudly completed?
Current rampers hint that the CDU mixed sulphide and oxide ore (DSO) will run at 20%.Wow, think of the metallurgical problems for the buyer of DSO
So let’s do a calculation and see what impact mining 20% ore for DSO will do to the company’s quoted resource based on what their announcements claim, and let’s calculate what that might leave behind.
Current stockpile let’s say 500,000 t.
If it’s all 20% DSO that’s 100,000t copper metal or about a third of the companys higher grade jorc resource (500k X 0.2 = 100,000t cu). (Using current JORC resource 30mt @ approx. 1% copper ignoring all the other components of the earth that make up the copper equivalent).
So if there is 1.5mt of DSO @ 20% taken out (300,000t Cu) then that JORC metal is gone?
Triple that to 4.5mt of high grade DSO and 3 times the JORC is gone in less than 5mt of ore.
So if there is a few million tonnes of DSO at those grades one must seriously question the resource model mustn’t one? To me that suggests there’s not going to be huge amounts of 20% DSO.
Also If those old drill holes didn’t pull up that shiny copper found in the pit as suggested in the last release, then what did they pull up… Fairy dust??
Also how much will taking out lots of DSO hurt the long term economics, as presumably
you’d get less for the DSO given its complexity and the need to process it and extra transport costs?
As WW says... If the DSO has a lot of the native copper then what’s the world class gravity jig going to do?
10-50 year mine life? What overall life of mine grade?
Many will have ask as to why I “waste my time” on CDU? It is purely for entertainment purposes. Many years ago a poster struck a chord with me when he/she posted that they were too old for Facebook and Twitter and HC was their form of social entertainment. Well I guess I am in the same boat as that person.
There is certainly an array of characters that have presented themselves to the HC forum over the years and most have had their two-bob worth. I wish them all well and hope that they can make money. The conspiracy theories have always baffled me. Best summed up on a previous post where I wrote:


"What is frightening is these "dis-believers" have probably duped a lot of investors to short CDU."

I think that you would find that the ordinary investor (the type who reads HC) does not have the ability to short.

I also think the shorters (big players) have been winning all the way down from $4. A 50% reversal to $2.25 would not really hurt them at all.

By the way Max, I considered shorting CDU when they were $4 but I was unable to work out how I could do so. The only way I have been able to short stocks is with put warrants and there were none out there for CDU



ps. don't put all your faith in the Cudeco Shareholder Report............it appears from all your letters that you have sent, that there is little real interest in it. Is it relevant? I guess we will find out in the long run.

How can posters be one minute thanking shorters for providing unbelievable buying opportunities and then in the next minute calling on litigation?

Another ramp that has amazed me was the claim that SFR were able to truck $13 000 000 of product per road train. Simple mathematical calculations show that at 100% copper, the road train would have to haul in excess of 1300 tonnes for that to be true. What sort of trucks driving on what sort of roads would need to be invented for this to be able to happen?



Anyway, back to being entertained........where is James and gjcl. Bring back NOIRPROCS and Turboprop. Missing Karlene and the old aka hooter with his crash test dummies. Chalco, ozblue ect, welcome to the circus