This post is off SS and thanks to 'Trindlers'."Regarding the AGM...

This post is off SS and thanks to 'Trindlers'.


"Regarding the AGM and with thanks to Sue12 who attended and the Update Presentation Slides issued by CCI, the following are the key positive points as I see them;

Everything seems to be going to plan at this point.

1. The BEE partner seems to be the issue holding up proceedings but as per the Update, CCI are in 'advanced negotiations' with 3 BEE Groups. My feeling is that this means we should have resolution/announcement of this key milestone before the end of 2005.

2. The Feasibility Study is now contemplating Open Cut Production of up to 250,000 pa.

3. Project Financiers reviewing the completed Mine Plan etc for the approx $1.7m Open Cut Plant costs -plus possibly $4m Underground Development costs in the future. One of CCI's problems is that the Capex is so low many Financiers are not interested. Funding by the 26% BEE partner is still an option apparently.

4. A huge resource at Ruighoek. 1m tonnes to be mined first up from the Open Cut.
Regarding the Mine Scoping Study, the Open Cut Treatment costs are very low and I can see where the US$100pt margin come in.

5. Regarding the Chrome Ore prices, Brian Thomas advised at the AGM that SA Spot Prices vary considerably. Elsewhere in the Update it is confirmed that up to 75% of sales will go to 'foundry sands & chemicals'. The sales prices for these are up to $US205 pt. Until they start production and we have some total revenue numbers v total tonnes produced - we will never know the average pt sale cost.

6. Also relating to sales and buyers, Brian Thomas confirmed at the AGM that at least 2 possible customers were willing to collect the Ore from the mine.

7. Regarding the Mining License, Brian Thomas also commented that technically they could start mining now but it was preferred to complete the set up fully before commencing production. This will be a long term operation. With the Underground also operating from year 2, they might be producing 400,000 tpa+.

8. Regarding the Open Cut mining, this would be undertaken by Contractors.

So thats all the good news. The key point being a first up likely margin (net income) after costs of $US25m pa now based on say 250,000tpa Open Cut production.

What about the negatives in terms of something out of 'left field' causing problems;

1. They don't have a lot of cash of course. They do have a 'big brother' with cash however.

2. They might have further problems with the BEE Partner. The finalization of this will be key milestone.

3. They need to finalize Capex Financing.

4. They need to apply for and be granted the Mining License.

In the meantime, CCI continues to be well 'below the radar' for investors/punters and the share price languishes just above 1c. Amazing!"

+++++++++++++++++++++++++++++++++++++

If all goes to plan and they commence mining late first quarter 2006, in % terms CCI could be the biggest gainer in 2006. EPS could be around 4cps. Current price 1.2c.!