China Africa Share Discussion Threads

[danieldruff2] 08/1/2014 13:35

It's all about the quality of the assets.

CAF - we don't yet know but should find out very soon with the imminent feasibility study. If it's a dud then the company is worth diddly squat, if it's good then the market cap here is far too low. For the study to have got this far it must be no worse than ok.

WTI - the price reflects the crummy underground mines they are trying to run, but will eventually reflect the much better Tschudi project. I would expect the share price to gradually rise to reflect this. Copper price is around a 6 month high so that should have supported their current production.

[pedro57] 08/1/2014 13:13

What are people's views on WTI and CAF with the quarterly production update next week? I am tempted to buy some at these levels, but there have been many false dawns with both shares. Cheers

[soulsauce] 03/1/2014 10:02

Zinc prospects looking better, should bode well for the FR.

[racinglad] 11/12/2013 15:14

Absolutely agree, just got to wait for the report, and the re valuation!!

[soulsauce] 11/12/2013 13:08

racinglad much obliged for that. I can see no other outcome than the feasibilty study being positive and lead to the eventual recommencement of mining at Berg Aukas.

I am prepared to await the RNS as it should boost our small mkt cap quite considerably. From what we already know from previous drilling there are many hundreds of millions of pounds of zinc, lead and other ores present. The share price is still some way short of the 40p listing.

[racinglad] 11/12/2013 12:00

Apparently core drillings are 'looking good, with nothing untoward'. However, the labs have been busy, and they have not had the results as yet, so feasibility study report will not be happening this year! However, very confident of the quality! Let us hope so!

[soulsauce] 02/12/2013 09:22

From this mornings WTI RNS:-

"The Company also has a 25% stake in an AIM listed company, China Africa Resources Plc (CAR), which is currently focused on the development of the lead/zinc project at Berg Aukas in Northern Namibia"

[soulsauce] 13/11/2013 14:12

daniel thanks for that comparisson.
The grades at Berg Aukas should make it a no-brainer. The company states it would first start by producing the easily gettable ore, that left behind and near to original workings which will fund the rest of the mining needs going forward.

[danieldruff2] 13/11/2013 08:59

Been comparing the numbers to a recent FS from Herencia who have a zinc project which will combine open pit and underground workings. Their zinc grade was just over 3% (CAF uses 3% cutoff!), their IRR was 20% and that includes having to build the mine workings from scratch which CAF don't need to do. I would hope the FS comes out with quite a high IRR and a modest funding requirement.

[soulsauce] 13/11/2013 01:51

Even at quite modest levels of ore production (less than 200,000tpa) the mine is potentially a large producer of metal because of the high grades involved (22% Zn+Pb). Berg Aukas ore is complex and contains an array of minerals in both oxide and sulphide forms. The Directors believe that the key to any successful development is to implement a process that maximises the recovery of all the metals into a saleable product - the key metals/minerals are zinc, lead, silver, and vanadium oxide.

[soulsauce] 12/11/2013 09:41

Hopefully buying starting again after a healthy pull back, not long until feasibility study, another day closer. Still only 6.5m Mkt Cap as opposed to a mine resource value that will be in the hundreds of millions.


soulsauce 16 Sep'13 - 16:17 - 588 of 624 0 1 edit

With a JORC of 1,264,800t @ 15.5% Zinc, 3.8% lead and 0.33% Vanadium we get quite a value. I am sure the feasibility study will be good epiphany and therefore the mine get the go ahead.

I am working this different to you and buying when I can as I know when this goes it's so tight you are lucky to get 100 shares at a time.

196Kt Zinc has a value of $372m

48Kt Lead has a value of $103m

4Kt Vanadium has a value of $96m

Total $571m

[soulsauce] 08/11/2013 10:13

Bit of liquidity freed up, able to get of more in volume now.

[soulsauce] 08/11/2013 08:27

Nice buying this morning, already nearly half as many as yesterday and only a matter of time before the next tick up.

[soulsauce] 08/11/2013 07:57

Marked up from the start, buyers still wanting in.

[soulsauce] 07/11/2013 16:40

Nice finish with a tick up on the bid.

[soulsauce] 07/11/2013 16:03

Agreed Mattjos.

So very tightly held this share, if the herd arrive ahead of news the last spike above 42p will easily be surpassed.

[mattjos] 07/11/2013 15:36

not enough assets in this at present for WTI to sell out. Needs a few years yet to roll in some of the EPL's that CAF have up their sleeve + WTI gives them access to Epangelo and that has a value not to be ignored.

[danieldruff2] 07/11/2013 15:14

Indeed, I would have missed this if not for investing in WTI last week, which I think can go x3-5 in the next 3 years. This one, I don't know. I guess if one asks, at what price would WTI sell out, then maybe you could approximate a fair value. As they listed at 40p one would think it would be well beyond that.

[soulsauce] 07/11/2013 15:05

Just the start, total disconnect between mkt cap and mine resource value ;-)

[moreforus] 07/11/2013 14:27

looks like a retest of the old 35p high is coming

[mattjos] 07/11/2013 14:06

shouldn't be too many sellers about given the relative proximity to news now

[parvez] 07/11/2013 10:19

Corporate change or 10% free float either way this one is set to take-off!

[danieldruff2] 07/11/2013 10:10

I bought mine earlier this week. Potentially there is a massive disconnect between the market cap and the value shown by the FS, and with Chinese backing and exisiting infrastructure I doubt funding will be an issue. Only fly in the ointment is that there has to be some fundamental corporate change post FS - they can't move forward with only 10% free float... what will happen?