The figures are excellent and the market reaction has been...

The figures are excellent and the market reaction has been positive, however there is a constant flow of sellers coming out of the woods every time the SP looks ready to take off. There are still too many weak holders and once they dry up the share price should be allowed to move forward.

Currently buyers aren't really having to pay up for the stock because of the selling, however once this dries up we should see a strong rally in the SP.

The market cap of the company is about $100 mil. Average pre-tax cash margins of around USD$150m for 14 years. Capex USD$250m.

Essentially the project pays for itself after 2 years.

Still to come is JORC on additional leases. You can also expect there to be cost synergies when scoping study is complete for additional leases.

Verdict. No brainer. Clearly undervalued and one the best small cap stocks on the market. I am a very firm believer in this one and can't fault management on progress thus far. Personally I am at a bit of a loss as to how it is not trading higher, however patience will pay off with CPL.

I just how many more boxes need to be ticked for the market to realise this.

Fortunately in the next 7 weeks we will have specific figures regarding the JORC for remaining leases. I am expecting the numbers to be big. A 300% JORC increase would not surprise me one bit.