China Africa Share Discussion Threads

[soulsauce] 30/8/2013 12:56

From Money Morning, 31.7.13 by Dominic Frisby -

"Zinc and lead are going to be in short supply. However, that spells opportunity for investors.

"As a rule of thumb, for supplies of a metal to be sustainable, miners need to find about twice as much of the mineral as is currently being mined.

"So if a thousand units of metal are mined a year, the industry needs to find another two thousand a year (bearing in mind that not all of this will be recoverable). Otherwise there will be shortages.

"But if there's no money for exploration, there'll be no new discoveries.

"Looking at current discovery rates, Shodde has done his sums on which metals will face the biggest supply shortfalls. He reckons that, in the next decade, copper discoveries will amount to about 1.7 times production. That's tight, but broadly balanced.

"Uranium discoveries will sit at twice annual production, and so are in balance. Gold supply is a little tighter, with discoveries amounting to 1.5 times production.

"But the discovery-to-production ratio for zinc is 0.7. And for lead, it's 0.5. That points to a huge shortfall. Discovery rates won't even match current production, let alone maintain future supplies.

"This means more money will have to be spent on exploration – and with more success at finding metal this time. Trouble is, there is no appetite for exploration investment at present. Too many people have had their fingers burned.

"Sure, all it will take is for a couple of winners to emerge, and the appetite for risk will bounce back. But – and here's the vicious circle – someone will have to fund those winners in the first place.

"What's most likely to encourage investment is that lead and zinc prices will rise, due to the pending shortages. Rising metal prices usually lead to more investment in exploration. And so the boom-bust cycle that has blighted mining for all eternity continues to turn.

"So get ready to buy lead and zinc, folks!"

[soulsauce] 24/8/2013 09:06

epiphany good to see you here.

Not that speculative e99 when cash makes up two thirds of the mkt cap and with a very good mine ready for re-opening in a strengthening metals environment. Add to that the management looking for other projects.

Downside - nothing seems to happen quickly but when it moves it moves fast.

I expect to see another spike soon and hopefully some good news to go with it we could see new highs.

[epiphany99] 23/8/2013 21:05

a few signs of life in the last few days.

It's wildly speculative, but I am thinking about adding a bit

[soulsauce] 09/8/2013 13:54

Time for another run up me thinks, doesn't take much with shares in short supply.

[soulsauce] 09/8/2013 11:50

Nice update with the interims but still no sign of other projects.

[paleje] 01/8/2013 14:15

Moneyweek article yesterday, Lead and Zinc to be in short supply, just needs wider market awareness and clear plan of action (and preferably replace the caretaker management).

[epiphany99] 03/6/2013 11:44

zzzzzzz....

Somebody waking this one up?

Still happy to hold and wait

[duplicate book] 10/5/2013 09:26

Nice chunky buy. Someone still has a bit of faith anyway :o))

[duplicate book] 19/4/2013 13:30

epiphany99.........your maths is pretty much spot on. As far as the price for a tonne of zinc, currently stands at around $1841.00 a tonne, which equates to a large amount of worth!!!

[epiphany99] 18/4/2013 13:51

Can anyone please point me in the direction of information to help me find out how much a tonne of zinc has been historically valued at in a company like CAF's market cap?

Also have I done my maths correctly?

Based on the JORC resource CAF has about 196,000 tonnes of zinc to extract from Berg Aukas?

(1,264,800 tonnes * 15.5% = 196,000 tonnes)

[christianf12] 16/4/2013 11:05

pmsl, not me with a free carry : )))))))))))))))))))))))))))))))))))

[newswseller] 16/4/2013 11:05

Very illiquid once the selling starts all of todays buyers will be trapped imho

[tez123] 16/4/2013 10:28

Rod Webster, CEO of CAR commented:

"I am very pleased that the results of this resource estimate, based on historical data and drilling undertaken by CAF in 2012, verifies the historical mineral resources at the Berg Aukas Mine. This is an exceptionally high grade zinc/lead deposit with much of the significant infrastructure in place, including an 800m shaft and underground development, which should allow rapid, and cost effective, reopening of the Berg Aukas Mine".

[moreforus] 16/4/2013 09:57

lol buyers waking up

[mirabeau] 16/4/2013 09:55

Nice update for a company so small

[epiphany99] 15/4/2013 12:59

Ignore my post above

The company website is confusing. The Annual Report 2012 link takes you to the 2011 report

[epiphany99] 15/4/2013 12:12

Has anyone read through the 2011 annual report?



It makes little to no effort to explain the company's progress or plans. It seems to be largely a list of generic disclaimers, which tend to appear later on in other annual reports.

It is very interesting and I wonder if this stock could be shaping up for a major surprise.

The owners and BoD do not seem to care a jot about AIM PR. The operating costs were negligible (

[epiphany99] 11/4/2013 11:20

Nice to see a little bit of buying creeping back in

[duplicate book] 09/4/2013 14:51

epiphany99...I spoke with the Company just after the release of the results, and they suggested they were still aiming to release them as soon as they were available, and were 'hopeful' sometime next month, that being April. Not much help I know, but they play their cards close to their chest!!

[christianf12] 09/4/2013 12:35

Busy with my goldie capped at around 60% of what it has in cash, never mind the JORC resource it has : ))

100p target here remains.