thumbs up take up, page-8

I've enjoyed being a part of the CSD threads for so long now but am conflicted by a lot of what has been posted lately.

I got into CSD during 2010 because I felt that their prospects were excellent in a commodity that I feel has a very good future. As time progressed and things were achieved that reduced risk I continued to increase my holding. The purchase of the KZL plant in Mt Garnet was a big positive - in today's macro climate with the financial constraints on miners I'd doubt if CSD would have any chance of becoming a producer without that purchase.

And yet since then I've seen nothing that has reduced risk at all. Risk factors present back then are still present. Metallurgy, a positive PFS, a JV deal that is acceptable, a running plant capable of processing tin, and finance concerns; are still present and significant risks.

Having to raise funds at 5c is a very poor financial result for CSD. The dilution does affect the value per share of CSD. For my own information I've been keeping current an NPV model for CSD based originally on the Scoping Study results. The value it gives per share is now a lot less than it was previously. Tin has fallen in price, the JV will see probably 50% of the profits go to SPI, and as yet I'm still using an unproven value of $12,000/t for costs. I'm doubtful if this figure is still current and will await the PFS to see.

None of the hoped for "boosts" to CSD prospects or risk reductions that have been hoped for in 2013 have yet been announced to market. The short term tin prospects proved unsuccessful. The plant is not yet operating and hence income hoped for is not being received.

I sold out of my options after the March 6th update which announced that significant events were a long way off and none were happening in the interim. Given what has happened in the macro area since, I'm happy with that position. 20c seems a difficult target for end of 2013. I put that money into heads to ensure that if CSD did "go", I would be well invested.

I've reduced my heads holding recently and moved funds to other tin prospects. I do fully believe in tin and if/when it goes I do want to have a ticket on whichever train leaves the station.


And finally, the core of my ramblings was to ask people, "How can you make a decision on the entitlement at this point?" and more importantly "why would you?". I will be making my decision on the 2nd July, and not before. It will be based on evidence between now and then whether CSD is on track to be a tin producer. Because at this point no such further evidence has been released to market.