quick sell your shares

To me


CAZ has been hit hard this morning - just shows the market gets it wrong!!! Well not that hard talk about a nice rebound

Yes they did not get allocation at Kwinana which could actually be a blessing in disguise!!



In short the company now plans to export 1.4mt via sealed containers out of Fremantle Port which has the spare capacity. CAZ aim for production first Quarter 2012 (about that they have always indicated).

Cost will be up $17 per ton but they will capture the higher Iron ore prices so still very profitable:

NPV of A$372M with IRR 106%

The company estimates they will get $140 to $160 per ton - So lets work on $140 a ton and with costs at $77 per ton = $63 per ton Profit.

1.4m ton pa times $63 dollars = $88,200,00 profit before tax - this is just a interim measure until Esperance Port it available Remember you can get bigger ship out of Esperance which greatly lowers costs for CAZ and will allow them to export 4-5 million tons pa



The company has 121,089,125 shares on issue so that's equals .72c profit per share (only on the 1.4m tons in containers).



Companies normally are valued on a multiple off profits to be "Super conservative" lets say 3 times earnings (more like 5 to 6 times) So 3 times .72c would value the company at $2.16 per shares (this would be still a bargain price for a company with 10 years resource with exploration upside and other assets).


i want to buy more at sub 30c so keep selling