I'm responding to Ozblue post but this response isn't directly aimed squarely at him but at a group that post here with views on the opposite end of the scale than mine.
I learnt this week Max is 83 and by all accounts must of lost his marbles and must say it was a pretty dismal display seeing a group of at least 6 hounding the poor guy for a response to every post so that he had to write 6 posts to everyone of yours which must have be time consuming to say the least.
If I was in McCrae's shoes I would want to punch someone in the face for slanderous remarks but being a figure head of a publicly listed company I guess the pen has to be mightier than the sword.
I see people attend to agree with Oz that its taken years longer and greater dilution than necessary to get this project running. Bully for you so where is your proof of this? Your assumption is that the project could of been fully financed by debt years ago so where is the proof of this after all the nay sayers think its a marginal project at best. Altona has the Little Eva project with cash in hand plus a board member that also sits on the Sandfire board so why is this project not happening based on hindsight based assumptions.
I know the concern is not for our Chinese based shareholders but for the retail shareholders when discussing the feelings of long term shareholders when the share price peaked at $10 and currently sits at $1.40. Do you people have the same concerns and mistrust in SFR in which you own shares for long term investors considering the share price is close to half of that 3 years ago or do you believe what the share market deems the value is worth isn't necessarily in the company's control?
So I thought it may be worth while discussing how those long term retail shareholders are feeling ripped, what is long term? Prior to the discovery of Rockland the shares on issue were 51 309 568 with a few raising conducted in the year around the 15 cent mark with about $500 000 in the bank. To have the share price still at the $10 mark as you fell it should would give us a market cap of $510 million with absolutely no construction on Rocklands what so ever with minimal drilling.
So since with the share price being around 15 cents with 51 million on issue they raised from the mum and dad investor $6 954 00 issuing 2 186 222 shares @ $3.18 on the 29th of June 2007, $5 012 000 issuing 1 995 250 shares @ 2.50 and 2013 $6 393 310 issuing 2 557 324 shares @ $2.50. Which means all things being equal the average long term investor from 2006 would of only paid 44 cents per share or average increase of 35% per year and all the other money raised at higher prices to be at this point from the Chinese and sophisticated investor.
Ok now the argument will be be the hype the company caused for it to go to $10. Was it the company or media? Could it be the very same media responsible for articles that now wish to do their utmost to ridicule and belittle Cudeco and Wayne that also promoted the company's potential with silly... quote " back of the enveleope calculations" being The Australian of AFR....and no wish to speak ill of the dead either considering the author has passed.
Canada's Dundee takes 7.33pc of CuDeco
MARCH 04, 2008 12:00AM
SO it was the Canucks who beat the Asians to the punch and gobbled up the near 5 per cent stake in CuDeco last week.
Toronto-based Dundee Corp, a big heavy-hitting investment firm, has moved to a 7.33 per cent stake in Cloncurry's favourite copper hopeful.
Interestingly, Dundee now becomes a key player in any takeover play for CuDeco.
The other interesting thing is that it leaves Daily Assay wiping the egg off its face, after we speculated that it was the Asians who had finally made a move on CuDeco.
Our spies maintain that the Asians are still very much on the register and very much still keen to take a piece of the CuDeco pie.
As usual, CuDeco founder Wayne McCrae still isn't talking to us. Especially not about what confidentiality clauses he may or may not have signed.
But our Cloncurry snouts maintain they keep seeing McCrae ferrying potential investors to and from the project on a regular basis.
As for Dundee, yes, they too have been out to have a look at Rocklands. And “yes” also to the notion from the market that they probably won't stop at just a 7.33 per cent stake.
But where does that leave everyone else?
The good thing about missing the Canadian move by a couple of continents is that it gives us a chance to get a few other rumours off the CuDeco chest.
Firstly, that Rocklands has had more than a passing interest in a few Australian miners, namely Zinifex and Oxiana.
How do we know this? Spies in the right places, that's how. And no, McCrae isn't one of those narcs. If he had been, then we wouldn't have missed the Canadian angle.
Last time he made noises about potential third-party interests, he got his butt kicked by the corporate plod for suggesting his company would be taken over by the end of 2007, pointing the finger squarely at Xstrata.
Xstrata is running out of ore at the nearby Ernest Henry mine and is paying millions to develop a decline to dig deep into the orebody, which won't be ready for years.
Anyway, there's nothing to suggest that those who have come knocking are being anything more than good corporate players having a gander at the new kid on the block. It makes sense and, as we have seen, nothing has come out of it, although Zinifex has made plenty of noise about diversifying more into the realm of copper.
But everyone is going to have to wait until CuDeco releases its updated guidance on the Rocklands resource numbers and for the referee to blow the whistle for the beginning of the corporate manoeuvring.
Will it be the slow-moving Asians, or one of the local players?
But here's an interesting fact. Zinifex paid twice as much as what CuDeco is currently worth to take control of Allegiance Mining, which had a nickel resource of 172,000 tonnes at its Avebury mine.
If Daily Assay's back of the envelope numbers are any guide for what might come out of Rocklands, CuDeco could be looking at a copper resource of around 1.6 million tonnes (100 million tonnes of 1 per cent copper plus 20 million tonnes at a higher 3 per cent number).
That doesn't include any cobalt credits either.
Of course, a lot of what the resource statement will say depends on cut-off grades and just how many drill-holes CuDeco wants to put into the ground at Rocklands. So far, they are up to 600 plus.
You do the math.
http://www.news.com.au/news/canadian-shine-for-copper/story-fna7dq6e-1111115709835
