Copper Dev Share Discussion Threads

[the count of monte_cristo] 28/3/2012 09:13

Can you imagine if the company did sell Hinoba-an and got $220m US dollars for it! That would equate to approximately 138m GBP, which is twice the market cap!!!

I appreciate that the sale, if one does occur, would take time and would not be completed until potentially year end, but it is not like they need the cash now in order to progress Basay because they already have a very strong cash position.

My view is that they will take Basay through to the pre-development stage and then sell the project for inexcess of $1 billion US dollars, my time period on this is end of 2013 to mid 2014.

Also that point about tourism areas, note that Basay is an old mine, it is not a green field site, it is not in prestine forest areas, it is not in or close to a national park - it is an old mine, which previously used to be in production, it is a brown field site with infrastructure already in place, check out the pics -

also see slide 23!!



However, we believe that the sale of Hinoba -an should fetch at least $220M.



Copper Development Corporation: Two exciting copper investments in one
6th Feb 2012, 10:26 am by Ian Lyall

.....CDC may sanction an outright sale, or agree a joint venture where it retains a free carry for a minority stake in Hinoba, Alland revealed. He hopes to have a deal tied up by the end of the year.

[leoneobull] 28/3/2012 04:25

Count...good work on promoting CDC on other threads. we need more debate/ interest in this stock wth gr8 potential since it's surprising not on radar of more people. copper @ 8400 US, great prospects, fully funded through proofing up / feas stages. actively looking for JV, etc.

[cyprussteve] 27/3/2012 21:49

As Count has previously mentionned - ref the possible sale of the Hinoba project - if this was to happen - ( and at what price ? ) - the Company's coffers would be hugely boosted for further expansion - this could be seriously exciting - and less than three weeks away now - what odds on the share price increasing in anticipation prior to the JORC ?
If the JORC for Hinoba is as good as the Company clearly believe it will be, then, we could be looking at a sale for this project considerably in excess of the current Company market capital, whilst still leaving the potentially world class project of Basay - what an enticing prospect.
We are still well below most investors radars, with a very tight spread.



Mitch Alland, Executive Chairman of CDC, commented:
"We continue to be excited by the excellent drill results received so far at Basay. The report on Hinoba-an will allow us shortly to begin marketing the Hinoba-an Project for a trade sale or joint venture. The Company believes that directing its technical and financial resources to the Basay project going forward, in light of its potential to be a world class copper project, will accelerate its potential development and maximize value for shareholders."

[the count of monte_cristo] 27/3/2012 06:32

For the newbies when researching this company take note of the 15th Dec RNS, as Steve has noted the company has a very strong cash position, so strong that it has enabled them to look at using there cash pile to buy back shares in the market....my opinion is that if the share price languishes at the current level for a while longer we will see some buys from the company, they can potentially buy back up to 10% of the company (approximately 6m GBP at the current valuation) which would further reduce the number of shares in issue which are already tightly held.



For immediate release: 15 December 2011

Share Buyback Programme and Project Update



The Board of Copper Development Corporation (AIM: CDC) has resolved to establish a share buyback programme. Accordingly, in accordance with its powers under the Company's articles of association, the Board has delegated the administration of the programme to an investment committee comprised of its Chairman, Chief Financial Officer and one Non-Executive Director. The investment committee will have the discretion, subject to any legal or regulatory requirements, to buy back up to 10 per cent. of the Company's issued shares over the next twelve months when the price at which the Company's shares trade is deemed by the investment committee to be at a significant discount to the Company's net asset value. It is the intention that any shares bought back will either be cancelled or re-issued at a later date.

[cyprussteve] 27/3/2012 05:27

Hi cd,
Thanks for that - I had read this link before and, wrote to the Company accordingly for clarification - you may be interested to read the reply I received from the CEO as follows:

"Steve,
Neither of our projects is near a tourism area. But, then, it's impossible to do a mining project in virtually any country near a tourism area; nor would a listed company like CDC attempt to do one, since we apply international or World Bank standards to environmental matters.
On the other statements in the article, there are many contradictory statements on mining policy coming out from different parts of the Philippine government.
Mitch Alland"

My own view is that mining legislation can change in any country at any time, and, I do not see it as any more of a risk in the Philippines than to any other country that hosts mining exploration, and, I feel satisfied that the Company has their act together on this.
Regards
Steve

[carpe diem007] 26/3/2012 23:13

Likewise Steve...you probably appear on more shares I follow than anyone else. We must adopt similar strategies :)

Cheers for the link... I'll print it off tomorrow & make it my train journey material to work for the week :)

I came across this & think it may well be worth keeping an eye on folks - New mining law appears imminent & does not look like it will be that all favourable compared to the current one.



Quite intrigued by this play & may be joining you all soon.

[cyprussteve] 26/3/2012 19:23

Hi cd,
Nice to see you here also :)
One thing that I really like about this Company, aside from their potentially excellent projects, is their strong cash position - as per the recent excellent and comprehensive presentation - "Well funded with cash balance of approximately £17 million"

Well worth an thorough read .

[carpe diem007] 26/3/2012 19:03

Count - Thanks for putting this company back on my radar. They have been on my watchlist for a considerable time but my watchlists need a bit of de-cluttering shall we say & I haven not checked in here for some time.

So far, I'm liking what I see...I'm quite bullish on copper & this does seem a decent play which would fit into my pf quite well. I think I will be spending the next week or so getting up to speed on matters.

Also, I know you have impeccable taste since you're already in FRX ;-)

Much obliged :)

[cyprussteve] 26/3/2012 16:33

Hi Count,
Thanks for the thread.
I have bought in today - and have now joined you both here and FRX - may both do well for us - I am sure they will do :)
Ciao
Steve

[scolat] 26/3/2012 13:54

Thank you Count for new thread - much appreciated

[the count of monte_cristo] 26/3/2012 12:39

you can...count... on it!:)

I notice there is an updated presentation on the company website, March 2012 -

Basay

- The deposits are all open along strike and to depth.
- Five drill rigs are currently operating on site 24 hours a day.

[leoneobull] 26/3/2012 12:29

Count ---keep up the good work!

[the count of monte_cristo] 26/3/2012 12:29

My pleasure buddy, good luck with your research, hope the above links and posts help. I plan on being here long term, so hope you pop in from time to time. I think the next big piece of news is this;



16 February 2012

Issuance of a comprehensive technical report on the Hinoba-an Project in the short term to support a trade sale or joint venture of the project.

...The Hinoba-an Report will be issued within eight weeks, the critical path item being the new resource statement that is expected to show a further increase in resources....

[soulsauce] 26/3/2012 11:36

TCMC thanks for bringing this to my attention, will keep an eye on it ;-)

[the count of monte_cristo] 26/3/2012 09:31

CDC is best copper investment play on AIM (IHMO), my bullish view is that the share price could increase 300 to 400% by the end of the year. They have plenty of cash, only have a few hundred million shares in issue and are looking to sell there smaller exploration project to focus on what could be a much more significant project. The management have a track record of developing assets and then selling them on.

Positive

- Strong cash position
- Only 220 million shares in issue
- Current market cap is quite low and share price is deflated
- Strong management with proven track record of developing and selling assets
- Looking to potentially sell or JV the Hinoba-an project, if they sell it my view is that it could fetch 200 US$ million, which is approximately twice the market cap!
- The big one for me, the Basay project could become a monster, and could cause a serious increase in the share price, it could be of serious interest

Negative

- Location - Philippines - although MML seem to do well!!
- Delivery dates of announcements are consistently late....the company have put this down to the labs being busy

[the count of monte_cristo] 26/3/2012 08:44

Added a few more this am.

[the count of monte_cristo] 24/3/2012 10:19

Leoneobull - a JV on Hinoba-an or an outright sale of the project, I would prefer the latter as it would then mean we are cashed up and could probably take the Basay project all the way through to the feasibility stage, before the company eventually sells the project for inexcess of 1 billion US$ to a major or chinese entity, that would be my preffered option :)

Also selling Hinoba-an, would mean we are not liable to any other payments and that management can focus time and resources on rapidily proving up the Basay project. FD estimate that potentially Hinoba-an could fetch over 200m US$, or approximately 120m GBP, something like double the current market cap in cash.

The Basay project has the potential to be world class in scale, and is close to the doorstep of the Chinese who consume 30% of the worlds copper and are buying up copper projects globally. Basay clearly has the potential to grow exponentially over the next 18 months, and with it will follow the sp, IMHO, so I concur with the FD target price of 116p but also consider that it will be re-evaulated upwards over the coming year.

The above is why I plan on being here long term, limited downside, with potentially massive upside is what I want exposure to, also copper is a resource which fundamentally has supply-demand issues, the supply is not keeping pace with the demand, hence the medium to long term price of the metal looks strong.

[leoneobull] 23/3/2012 16:53

£1.16 that's more like it! i think if we get JV interest in 1 of the 2 interests we will really see take-off in value here...it's just a qn of getting on radar. dont 4get that a very sign % of shares are in hedge fund/ II hands...very little in PI hands so wont take much t/over to see a massive rerating IMOV

[the count of monte_cristo] 23/3/2012 11:12

Dear All,

I have created a new thread for CDC, I will keep the header updated. Enjoy the recent FD Broker note and increase in target price from 102p to 116p, a more than 325% increase on the current share price of 27p.

I am here for the long term.



Recommendation
We maintain the BUY recommendation with an increased target price of £1.16
share, formerly £1.02.

[the count of monte_cristo] 23/3/2012 07:12

Look to the long term duxy....take advantage of it...IMHO.

Off topic, shares I like;

Gold - TGL & BGL
Silver - AGQ
Copper - CDC
Oil - GKP

[the count of monte_cristo] 21/3/2012 17:12

Nice update, all looking good here.

[leoneobull] 21/3/2012 11:48

yet more amazing results. i cannot believe that CDC isnt attracting more attention / visibility. wont be long!