Interesting times. WS selling down. WC8 out with no explanation. SP cracks a new low. DeBono ever reassuring.
I'd be interested to know what happens with the low loader etc when the job gets postponed by what, a week or 2? Bernie tells us these jobs always 'slip' and it seems to be the case. That doesn't seem to bode well for rig utilisation rates, does it?
I agree with Bones that 3-6 months is the timeframe to see some SP action. If execution of Newcrest and Whicher are 'flawless' or close to it, hopefully the drill will promptly be booked for the rest of the year. The CLRS marketing drive will have started in earnest (with the new 'product development guy' as advertised on seek) and there will have to be a material announcement re: new rig builds by then. That's enough time for Kelley to execute some calls too, and for the drill team to settle in.
I'm happy with this timeframe and will look to average down as funds are available. If they can get to the stage of having 3 working rigs and a modest income from the CLRS I believe it should be a ten bagger from current levels. Previously I had used a 'back of envelope' figure of 11m profit per rig but even at, conservatively, 6m profit per rig by 3 rigs, plus 2m from the CLRS, that's in the ten-bag ballpark.
A quick question: Is it correct to say that they have til March 2013 to complete the build of two more rigs as per (extended) IP agreement?
Unfortunately I can't make the meeting (I'm in northern NSW) but hopefully next year my profits may pay for a visit back to my former home town. You guys have fun and shout Bernie a Guinness ;) for me
CKK Price at posting:
7.1¢ Sentiment: LT Buy Disclosure: Held
