The reason that CDU took a big tumble in the sp last August, was because the JORC broke the heart of many investors who were lead to believe into something that wasn't there. It was ramped up and pumped up so much by certain posters, that when the news came out with a totally different picture with about half of the copper percentage content and less than the amount of ores tonnages as previously forecasted, everyone headed for the exit door and caused the sp to ridiculously low and possibly unprecedent levels reached over the previous few years.
The same thing happened there because all the short term traders and the day traders, having sensed the loss of money, sold out one after another causing stop losses to be activated/triggered, marging loan calls been made to cover, the CFD's forcing more people to sell, and all of that was compounding to the drop in the sp.
One thing is clear to me. And that is what I wrote yesterday about part of the plant that could be built in China.
After listening to Tony's comments today in that regard, and from what I understood, he made it clear that some of the plant that will be required for our operations could very well be built in Asia where the cost for such things are considerably cheaper.
I still can't see how it will cost us $700million dollars to go mining though, but I am not the CEO and I will take their words for it. Comparing the costs to built such a plant with the costs that large mining companies would have to incur for similar plants while producing far more Iron Ores per year than us, I find it a bit hard to believe.
Anyway, the most important thing that we have to take notice of before passing judgment, is the fact that going mining will be profitable, and that the costs forecasted against the Iron Ore that we will produce initially is only represenative of Stage/Phase 1 of our operation, with a hell of a lot more to come after that.
Cheers.
PLV Price at posting:
36.9¢ Sentiment: LT Buy Disclosure: Held
