Copper Dev Share Discussion Threads

[mike_f] 14/6/2012 20:37

And the weakness in the mining sector at the moment probably but tbh I don't ever listen to any recommendation they make as 99% of the time they get it wrong!

[the count of monte_cristo] 14/6/2012 20:14

Thanks someuwin - any reason for this? I guess related to the current weakness in the copper price?

[someuwin] 14/6/2012 18:20

RHPS has tonight downgraded CDC from 'BUY' to 'HOLD'.

[the count of monte_cristo] 14/6/2012 16:11

Send him an email with your concerns Leoneobull, see what he has to say.

[leoneobull] 14/6/2012 14:43

what concerns me is Mitch is always super upbeat in RNS but this one sounds downbeat

[mike_f] 14/6/2012 13:30

More news on Basay soon once analysed:

'Over the next month the Company expects completion of the assay results from the final eight drill holes. Once these assays are received, further analysis of all data gathered to date will be carried out in order to improve the geological model and achieve better quantification of potential of this system of deposits. This analysis will include wire frame simulation of drill results as well as hand drawn interpretation of maps and sections, also incorporating the results of on going exploration mapping and completed soil sampling and geophysics.'

Also should be getting an updated JORC on Hinoba-an soon!

[mike_f] 14/6/2012 13:24

Good news, shows how big this resource is! Surprised we are down rather than up...

[the count of monte_cristo] 14/6/2012 13:01

Worth re-reading this again, and assesing it against this mornings RNS;



The plan for this year is to drill a minimum of 44,000 metres at a cost of about US$15 million – though the programme could be far more ambitious than this. "If we continue getting the fantastic intercepts we have been getting we will try to accelerate the programme - it may go to 60-80,000 metres," said Alland. "The difference is 44,000 metres might take it to 500 million tonnes. With 60-80,000 we might make it to 1 billion tonnes - now that is a very large project. "How long we take to prove it up who knows? If it is 1 billion tonnes then we might be able do to it in the next year. If it is 4 billion it will take longer."

CDC is funded to carry out an ambitious exploration programme with US$26.9 million in the bank as at the end of December. However at some point, if Basay proves its world class potential, then the group will have to team up with a big brother with the financial and technical wherewithal required to take the project forward. "You don't want to go too early and leave too much on the table," Alland said of the tricky decision of just when to bring in a partner for Basay. "We can't really value the project now without more drilling - we would be risking a big undervaluation. All we know is this project is worth a lot."

[leoneobull] 14/6/2012 11:33

I think they're being prudent. so many drills operating 24/7 has given them so much info that they need to refocus on analysing it. prob the underlying message is that they dont expect the pace of exploration / dment to be as fast. Seems prudent to conserve cash until they have the detailed rpt & can go out to secure the JV....

what about dment costs? we know that this is a 400-500m US investment for long-term but all main players need to increase production since it's been flat to declining. KAZ havent increased prod in 3 yrs for ex. & are making major invest to do so

[leoneobull] 14/6/2012 11:29

Completion of 34,002 Metres of Drilling at Basay and Suspension of Further Drilling Pending Deeper Study of Results and Geology With a View to a Possible JV and Resignation of Director
Highlights
• With 34,002 metres of drilling for 71 holes completed at Basay Project, CDC is suspending further drilling to facilitate more extensive analysis and study the results and the geology of the deposit.
• In coming months the Company will concentrate on producing an interim report that will review the results of drilling and the geology in order to show the extent and quantitative potential of the deposit and provide the basis for discussion with some major mining companies with a view to concluding a joint venture on Basay.
Brian Lueck has resigned from the Board but remains Senior Geological Consultant

[the count of monte_cristo] 14/6/2012 11:10

Reckon Basay is shaping up to be a monster.

RNS out;



14 June 2012 - Copper Development Corporation

Completion of 34,002 Metres of Drilling at Basay and Suspension of Further Drilling Pending Deeper Study of Results and Geology With a View to a Possible JV and Resignation of Director

[mike_f] 14/6/2012 10:48

Hi Count, yes very similar! Hoping news is around the corner, also results are due very soon which may give us a boost, feel we are oversold at these levels.

[the count of monte_cristo] 14/6/2012 10:33

Mike_F - compare the above July 2011 to June 2012 graph to that off AFFs...almost identical.

[mike_f] 14/6/2012 10:00

I wonder whether this has touched the bottom? It would look as though it has looking at the charts...

As The Count says an updated JORC for Hinoba-an is overdue!

[the count of monte_cristo] 14/6/2012 07:34

The copper price is driven by longterm supply constraints. This was shown conclusively by a Goldman Sachs copper study last September, which reviewed the twenty-five largest copper project in the world. The study stated that these projects needed an average copper price of US$2,97/lb (say, US$3,00/lb) to achieve a median 15% IRR on the projects. If the perception of mining companies of the long term copper price fell below this level, half of the projects would be delayed or shelved, which action would support the US$3.00/lb price. The study concluded that even with continued slowed down in the Chinese economy or a hard landing for the world economy, the prospects for the longvterm copper price would remain at around the US3.00/lb level. I don't think that this situation has changed. Of course, there are likely to be short term fluctuations in the price. When the world economy crashed in August-September 2008, the copper price in January dropped to US$1.30/lb, but buy April of that year reached US$4.50/lb, the level it had attained a year earlier.

I have read that over the next few decades more copper will be consumed than has been consumed in the last 10,000 years and that ore grades globally are falling, production costs are rising and generally new miners are now becoming harder to find and are of low grades and in more remote locations. On average it takes 10 years to find and develop a mine, so if the current global financial situation starts to impact investment in new mines then surely this will create the next bull run in the metal as once the world emerges from this period of slower growth the metal will be in demand again, but new mines will not be on stream as there development was delayed due to financial conditions.

[leoneobull] 13/6/2012 17:25

sbdy ditched 225000 at 10.5p unless that was the UT but ...

my research suggests:
- copper production globally has fallen because of probs in production grades i.e. amount of copper found
- lower grades kept price v high in 2011, in 2012 it's lower but still not too bad
- most big players are struggling to increase production

[mike_f] 13/6/2012 16:26

Car business? Sorry I don't follow

[linton5] 13/6/2012 16:22

are you still in the car business mike NICE DROP

[mike_f] 13/6/2012 15:41

Just got a few more at 11.2p as well now can't even buy 5000 shares...

[mike_f] 13/6/2012 15:38

Wow, missed the lows but managed to pick up a few at 11.25p, cannot buy more than 5000 shares...

[the count of monte_cristo] 13/6/2012 10:29

I doubt it. IMHO, it is the market...and small PIs bailing, CDC is a fairly illquid and tightly held stock so any selling volume can tick the share price down (same is of course true for the reverse). Reminiscent of 2008 this, in regards the sell off in resource stocks.

I added more this am. CDC have 5 drilling rigs drilling 24 hours a day at Basay, and will have the first half of the 44,000m drilling campaign completed soon, looking forward to results. Basay has the potential to be a world class copper project, if true then the current share price could...be a very good long term investment, IMHO of course.

The FD broker share price target of 131p against the current share price of 11.65p.

[leoneobull] 13/6/2012 10:05

WTF 11.65P! WHAT IS GOING ON MITCH??? anybody thnk this is company-related?

[the count of monte_cristo] 11/6/2012 10:03

This is late, news could come any day now.



11 April 2012

An updated JORC compliant Mineral Resource for the Hinoba-an Project is expected to be announced next month.

[the count of monte_cristo] 11/6/2012 09:29

Picked up around 75,000 shares this am.

[the count of monte_cristo] 08/6/2012 11:35

willib2 - unfortunately that is all I could afford, and indeed, I had to sell one of my stocks (with less potential) in order to raise funds for this purchase. Unfortunately I am not a rich man.......yet:) Hoping CDC will alter this in the coming years. If I had more funds I would indeed be filling my boots, along with a host of other bombed out resources stocks who are backed by cash, such as AFF & NCCL for example.

P.S. I reckon commodities will go on another nice run when further QE happens, which it will....