if u didnt catch today's news / cmr
CMR today reported they have the NT PER approval for their Cu-Co-Ni oxides starter project which IMO alone gives them a conservative P/E target around 6+ bucks on modest annual net earnings beginning early next year and based current metal prices.
Oxides capex has been fully equity funded with 2 US hedge funds and two Hong Kong instos providing latest and final AUD 44 million tranche. CMR has no debt or secured creditors of significance, no hedging, 105 mill shares cap fully diluted, major plant items already secured and rest ordered, and offtake agreements nigh according to recent annual report. Oxides resource currently stands at around 10 years with more to come. Capex payback is well less than one year. So all in all, dividends will prob start from year 1.
Beneath the oxides is a major sulphides resource which if u sit down and do the numbers for the most modest of operations, is quite mind boggling. But sulphides start-up is aimed for 2009/2010, so plenty of time to talk about that later. Remember tho preliminary feasibilty study was completed back in 2003 at cost around 6 mill from memory, before being shelved then cos of low metal prices.
But thats not what u guys are interested in ....... nor that much I for now. IMO the REAL story only now begins with 35,000 line metres of drilling (3 rigs) planned to start within a few weeks and primarily aimed at JORCing the Northern Territory's Rum Jungle Uranium Field which CMR controls the majority thereof.
The RJUF under CMR's control not only holds Oz's first 3 U mines sitting in mothballs since 1960s, with seemingly (undefined) residual resources intact below the 100m levels they were mined to for around 10 mill lbs total averaging 8 lbs/tonne, it also holds NUMEROUS historic and new targets, most of which have already previously exposed commercial grade hits.
And amongst these are major uncomformity style targets for the purists ..... "Athabascan Gold".
Last year significant work was focused on the Mt Fitch U resource to confirm past drill results and upgrade to JORC resource status in near term ....... now pending. It seems likely to me that Mt Fitch, reportedly on freehold, may well become Oz's next new U mine given required approvals are gained.
And given CMR's nearby oxides plant should be operational early next year, thus providing supportive infrastructure to any new U operation, as well as having capacity with minor modification to also produce yellowcake, then U production may well be fast-tracked here if oz Fed government is serious about new U.
CMR recently suggested up to 4 mill lbs pa yellowcake production could be possible from likely resources in the RJUF in the near term, subject to approvals. With low capex and opex likely, given the existing infrastructure and fully funded capex from oxides revenues beginning next year, realisation of that kind of targeted production would make an absolute mockery of CMR's current AUD 300 mill market cap when compared to its peers.
With today's announcement re Cu-Co-Ni oxides production approvals and imminent start to major U-resource definition program in the Rum Jungle, reckon the cosmos is now perfectly aligned to expose and elevate the Jungle King to its rightful position as leader of the Oz U-pack.
This coming likelihood has not gone unnoticed on the foreign institutions who seem to have jumped our local boys with their Olympian vision.
As Alf recently declared, CMR offers a free call option on Uranium. Looks like yanks mustave believed him hey?
Congrats to CMR shareholders. It has been a long wait but now technically and fundamentally, the real fun is about to begin in uncharted deep blue skies.
In my very biased opinion of course bros. Ive been sailing this Odyssey for almost a decade and its finally coming together in a hurry for mine. Its all in the CMR website if u look closely. The May 31 AGM should be standing room only.
(20min delay)