Hoots, yes I did read why M&G sold out of Cudeco. I read it in the London Financial Times and on the internet like everyone else. M&G lost $US 7.3 Billion(5.1 BILLION ENGLISH POUNDS) from their managed fund. M&G said ," we invested in more than 180 Comp cash reserves, M&G said, " cost us to rethink our strategies and the Board and Investment Managers decided to withdraw form any companies not paying a dividend at this time". M&G sold down more than 20 Australian Mining Companies stock including Resolute, Medua, Cudeco, OZ Minerals among others. I think that you will find that PZ are in for a big hit shortly as I see M&G are the big disposers of OZ. OZ is losing around $100m a quarter and I think cant afford to pay dividends for much longer so they will be the next big disposal asset of M&G, I'm guessing but the odds are with that proposition.
As for the concrete not being done, yes, I did read the reason and believe that Cudeco management made the right decision not to pay $5,000 a cubic metre for concrete because of the high prices being charged by contractors and service companies. I understand that there is around 20,000 cubic metres of concrete at Rocklands and if the company had of paid $5,000 a cubic metre it would have cost us shareholders $A100m just for concrete. As it turned out by the management waiting for the downturn it cost only $20m. This is better than being on time.
Even you would have to agree Hoots, one thing that Cudeco management does is manage the money very well and does not bow to pressure from institutions just to be on time. I would also point out that the Prominent Hill Mine owned by OZ Minerals was budgeted to build for a total price of $900m. They also got behind and to catch up just to keep the insto's happy spent another $A1 Billion, yes one billion $$$ to finish it so it came in at $1.9 Billion. Look it up.
All or most 99% of mining companies all come in late for completion of their project and usually way over budget. This is not something new.
Also the so called experts that always compare Cudeco with Sandfire, obviously before everyone engages their little brain they don't do their homework here either:
Check out Sandfire: DFS: 3rd June 2011. says:
Revenue 2012 -2013 full year expected $A730m...Actual $A507m (short of DFS by $230m.)
DFS said: Pre Tax Cash Flow: $440m..... actual was $250m...(short by $190m).
DFS says Production of Copper 77.000 tonnes.... actual 64071 tonnes (short by (13,000 tonnes)
Sandfire predication full year 2013 -2014
DFS says: Revenue: $703m.....Actual $531 (Short by $200m)
DFS says: Net CashFlow: $440m.....Acutal $223m (short by $217m)
DFS says: Copper for year:77,000 tonnes actual:. 67,000 tonne (short 10,000 tonnes)
These figures come from the Sandfire: DFS Report 3rd June 2011 and the Actual Financials come form the Sandfire Annual Report. With DFS Revenue predicated for two years of $A1.46 Billion Dollars: actual $1.038B (short by $438m.) Pre Tax cash flow wasn't even near the Ball Park. Total Nett Profit after Tax for 2013 FY $88m and for FY 2014 $78.2m.
This is not ta take anything away from Sandfire as it is a well run company and has a great resource but what this does is to say Sht Happens.
Im happy if someone wold like to check these numbers but they have come from the reports issued by the Sandfire Mining Company. Just shows that it is a common occurrence that things never go to plan even with the "supposedly best of them). So next time the Janti and friends experts carry on about comparisons, Im happy to listen and read, BUT get it right, its just froth and bubbles. No Research at all.
One thing my father taught me at a young age: NEGATIVITY IS NOTHING MORE THAN NOISE......
DYOR
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