Post #:59490297 This post by another HC user gives the sales and prices for directors. It is clear that they have sold to convert options and take a very small amount of money off the table to pay tax liabilities and to give themselves a very small pay day. They hold more shares than they did before the option conversion. So no concern at all, absolutely none!
Your statement, "
I would like to see them buying back in now at these prices if they are truly confident of the projects." The directors are very confident of the Greater Duchess copper-gold project. Much of the share sale money went into converting options to hold even more shares. The directors have been very bold by announcing a "Major IOCG discovery," "Spectacular results" etc. This is really putting your professional credibility and standing on the line. There can be no greater statement of confidence in the Greater Duchess copper-gold project than this. They went out publicly to raise $20million to progress these projects quickly to realise value for shareholders. You don't do this without a lot of confidence in the projects and expected drilling results.
If directors were able to fund the projects by themselves they would have a private company. By listing on the ASX the company has access to capital to progress the projects. This gives shareholders the chance to participate in a major discovery.
There are very few capital raises where the share price does not drop below the raise price per share within a few weeks or months of the capital raise. CNB have proven to be no exception. The directors held off when they could have gone to the market at $0.50 per share or even lower. This is a big vote on confidence that it was worth waiting for drill results before raising the exploration funds required to drill this out.
To make a statement that the copper is 240m down is to ignore the long list of drill results from surface or very shallow depths at Nil Desperandum and Lady Fanny. There is a large body of ore in the 0.5-1.5% Cu plus gold credits in the open pit zone, with a modest waste to ore ratio. The spectacular grade copper sulphides at 240m were also encountered at shallow depths although the intersections of this grade were narrower in larger zones of
[email protected]% Cu. There is profit to be made from surface not from 240m and your comment is very wrong and very misleading.
For shareholders the value will be added even further long before CNB have a mine, more high grade intersections and JORC resources will do the trick. No need to mine before the share prices reflects the scale of the discoveries. The two drill rigs and an IP team going flat out is going to provide such a strong news flow that the share price will rise or fall purely on the exploration results.
I am a strong believer in the Greater Duchess project and yet I have sold 250,000 shares into the share price run. This was my trading stock and I still hold a large position. I needed to rebalance my investments and pay for my retirement in Fiji. If the price drops further I will buy my trading stock back, if not I am sitting on a large parcel waiting for $10 per share. I also hold a large parcel of Hammer.
So please drive the share price down for me and I will be very happy to benefit from it. And if you check I have not been ramping the shares so I could sell. I was pushing them more when they were below 30 cents so that people could realise the value they represented. However I go with the geology and have no real idea what the market price will do. I just have faith that a big discovery will move the share price eventually. CNB couldn't have been clearer for the last 6-8 months that they had a major discovery but the market did not believe and rerate the shares until blind Freddy could have realised what they had. There is every chance for a further upward rerate but a long string of high grade drill results and perhaps some JORC resources will be required to take the shares up to a much higher level. With $20 million being pumped into the ground at least this should not take long.
DYOR. Not investment advice and always take responsibility for your own investment decisions.
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