So here we have the same negative comments about the raising as in so many other threads.
The original rights notice clearly states what the money is for, I quoted from the announcement. Here it is again for those that choose not to read the released documents.....
"Providing capital to allow CuDeco to progress the development of the Townsville Port assets and Cloncurry Multi Rail load facility more quickly without the need to finalise deals with third parties, if required."
also included....
"The funds raised from the rights issue will reduce the CuDeco’s reliance on drawing down this entire facility"
They will own the rail and port facilities, CDU will not have to rely on the negotiating process and time taken in Due Diligence for a joint venture, ie CDU can get out and do it.
Cheap to mine, cheap to process, and cheap to transport means a winning combination, especially with a large rich deposit.
I am a recent purchaser of shares for the first time, I have spent many hours going over all the past announcements, for the last few years. I couldn't believe the low price when I saw it in relation the current position of the company.
Just as an note on the announcements, the last 20 dealings of shares by directors have all been buys.
CDU Price at posting:
$2.02 Sentiment: Buy Disclosure: Held
