please explain share buy back?, page-7

TT

I will not go through each individual comment and just say if the share price rises on the back of DFS, finance and mining licence and they have not needed to issue capital until those gains are implemented than this is a very good strategy by management. It really is that simple and whether they are earning income or not it is irrelevant as long as they maintain enough capital to keep running the business they would see this buy back as adding shareholder value. In regards to your comment of "cash positive" - CDU is cash positive hence why they can implement the buy back.

As for the "BUT they still have to re-raise this capital" ... I'm telling you guys for the last time they probably won't be "raising capital" but debt financing the project. McCrae has virtually spelt this out in one of the announcements when he said that there will be no new shares issued at this price. If they do project finance via debt and the share price rises, this is a very good play.

Whether the buy-back is successful or not will ultimately depend on other factors such as DFS, project finance, resource upgrades and mining licence approval. If you predict these will come back negative fair enough I'd love to hear your reasoning. What I can however say is that the above mentioned management strategy is reasonable, may well be effective and is carried out everyday in the USA and Australia.

I am the Iceman!