Copper Dev Share Discussion Threads

[leoneobull] 15/6/2012 18:20

PS until we get news i would treat the FD target price with grain of salt. they are paid CDC brokers after all...hope they do have monster dment site on their hands tho,

[leoneobull] 15/6/2012 18:19

i like this bit,,,at end fox davies note,,

Upside potential at Basay
There are eight drill hole results outstanding. Continuing analysis and geological interpretation of the assay results announced this year
are expected to show the extension of the Southeast deposit by some 300 metres on strike, while increasing its girth on many sections,
as well as the possibility of adding major resource potential to the deposit at depth. The southeast deposit remains open to the
northeast, the southwest and at depth.
The Central-Northwest deposit has been largely closed off to the northwest by current drilling but soil sampling suggests an offset in
the deposit to the north, which can be tested by further drilling. There is still significant potential to increase the size of the deposit at
depth and especially in the area where the Central Deposit intersects the Southwest Deposit. The Nabore Deposit remains open to the
west, east and at depth.

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.
The Company's current geological mapping has identified new potential drill targets to the east and west of the Nabore Deposit, and
prospect-wide soil sampling has identified a copper anomaly coincident with a zinc halo, that is a typical of many copper deposits, to
the north and north west of the main deposits. These areas, which are also indicated by the Company's geophysical surveys, will be
mapped during the coming months as well as further studied in the interim report, and will be included as primary drill targets when
drilling resumes.

[mike_f] 15/6/2012 10:27

I am hoping we see some director purchases when the results are released. The last time they bought was in Dec 2010 at 37.5p & 37.8p!

[mike_f] 15/6/2012 10:19

Mad isn't it? This time next year Rodders :)

[the count of monte_cristo] 15/6/2012 10:17

I am quite surprised that they have kept there share price target at £1.31 per share, not because of any news or change to the fundamentals to the company, far from it, but rather due to the current weakness in the sp, markets and copper price.

The share price would now have to increase 1,150% to attain the FD target price:)

[mike_f] 15/6/2012 09:54

Courtesy of Clod12 on iii:



Basay Update
BUY recommendation maintained
Event
Copper Development Corporation ("CDC") has announced that it is suspending
drilling at Basay to facilitate more extensive analysis and study the results and
geology of the deposit.
Comment
This is a standard procedure in major drilling programmes and, with 71 holes
completed for 34,002m of drilling, this can only be described as a substantial
project, which remains open at depth and along strike. This review is expected to
take two months. The interim report will 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.
We emphasise that this decision was NOT taken because CDC is running out of
money. Our modelling indicated it will have about $14M of cash on hand at the
end of 2012 and no need to borrow or raise additional capital this year.
The Company also announces that Brian Lueck has resigned from the Board and
that his function has been changed from that of Chief Operating Officer to Senior
Geological Consultant, in line with his desire and objective of bringing his
geological skills and experience most effectively to bear on the Company's effort
of leveraging the maximum value from the Basay Project, which is the primary
focus of CDC. Mr. Lueck remains fully committed to CDC.
Recommendation
We maintain a BUY with an unchanged target price of £1.31 per share

[the count of monte_cristo] 15/6/2012 09:48

well that was a buy and it was my buy...good that you can buy below the current quote price (10.75p). The 10.5p would be a sell.

[willib2] 15/6/2012 09:42

The Count
80,000 showing as a sell on iii and price has dipped.

[the count of monte_cristo] 15/6/2012 09:28

Thanks for that Mike, plenty of cash, they have now completed 34,000m of drilling at Basay which is a pretty significant amount.

...how many have I got...not enough! My target is ideally the 1 million mark, I am some way off this! Further QE is almost a given.

[mike_f] 15/6/2012 09:23

Hinoba-an and Basay: Conclusions

 Large strategic tenement package in proven copper producing district

 Hinoba-an Project
ￚ CTR completed in March 2012 will be used to pursue a trade sale or joint venture of the project
ￚ CDC estimates Project Post-Tax NPV at US$440 million and Post-Financing IRR at 36.3%*

 Basay Project
ￚ Initial JORC Inferred Resource of 131 Mt at 0.48% Cu using a 0.25% Cu cut-off
ￚ Assays received so far include exceptional results such as 408m at 0.65% Cu and 261m at 1.08% Cu and geology
indicates the potential for a major world class copper deposit

 Undervalued relative to peers

 Experienced in-country management team

 Well funded with cash balance of approximately £12 million

 Near term catalysts
ￚ Trade sale or joint venture of Hinoba-an Project
ￚ New exploration strategy at Basay expected to show potential for major copper deposit

[mike_f] 15/6/2012 09:21

Count, in the April presentation the company stated: "Well funded with cash balance of approximately £12 million"

So two months on I would expect around £10M cash left, certainly more than enough to see the year out as they have suspended drilling to analyse the results for the moment.

[mike_f] 15/6/2012 09:16

As is suspected just because of the weakness in the mining sector, if QE comes then the mining will have a good boost and IMO QE is very likely.

How many you holding now Count? lol

[the count of monte_cristo] 15/6/2012 09:12

Thanks someuwin! It will be interesting to see just what there cash positon is when the half yearly results are released. At 30th June 2011 they had $48.3m US in cash (31.1m GBP).

Some very approximate figures but lets say they spent $1.5m US each month that would equate to $18m cash burn for the year, which would leave $30m cash or 19.3m GBP in cash at end of June 2012. If they then went on to spend $1.5m p/m this would give them 20 months of cash. All of these figures are of course just very vague guesses, we will know for sure what the position and rate of cash burn is at the end of the month. However they should still have a very healthy cash position and should not need to come to the market to raise further funds for at least a year and a half...and this does not include any sale or JV of there two projects - be interested to hear peoples views on this?



Audited accounts for the year ended 31 December 2011 - 30 June 2012

[someuwin] 15/6/2012 08:58

FWIW this is what rhps said yesterday...

"COPPER DEVELOPMENT CORPORATION (CDC): CDC has decided to postpone any further drilling of its Basay copper project in the Philippines, although it remains convinced that this is a major copper deposit.

This decision is due to the depressed state of the mining market, and will enable CDC to conserve its cash. CDC had planned to sell its Hinoba-an project in order to focus on Basay, but the former may prove difficult in the current climate and CDC is now looking to produce a full report on Basay with a view to finding an industry partner. The copper price has fallen by some 10% in recent weeks and sentiment in the mining sector has taken a turn for the worse. This does not alter the fact that CDC appears to have excellent assets in the Philippines but as with all mining juniors it does not have the money to develop them on its own. Until we get some sign that sentiment is improving I am going to mark the shares down to a HOLD (Current Price: 10.88p)"

[the count of monte_cristo] 15/6/2012 08:50

Added 80,000 shares @ 10.7p

[leoneobull] 15/6/2012 08:25

Counto yep i knew the guy remained with the company but why resign from a more senior position? What i said was the RNS headline seemed negative. 'Drilling stopped and director resigns' doesn't push the BUY button...

[mike_f] 15/6/2012 08:21

Morning Count, I think a sale of the asset is possibly the best outcome as they will then have more than enough funding to take Basay to the DFS stage after lot's more drilling! If a sale was concluded then the share price would multibag overnight as at these levels like you say the current mcap is only £25M! Fingers crossed.

[the count of monte_cristo] 15/6/2012 08:17

Hi Mike, personally I think Hinoba-an will be sold by the end of the year. $220m = 142m GBP...current market cap of CDC is less than 30m GBP.



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

[mike_f] 15/6/2012 08:12

Let's not forget this is now overdue:

"The Hinoba-an Project hosts two known deposits, the Don Jose (DJ) deposit and the A1 deposit, with an estimated gross JORC-compliant Mineral Resource of 319.3 million tonnes at 0.35% Cu at a 0.2% Cu cut-off grade, which was announced by the Company in October 2011. Measured, Indicated and Inferred Resources of 109.2 million tonnes at 0.42% Cu, 40.6 million tonnes at 0.35% Cu and 16.9 million tonnes at 0.24% Cu, respectively, have been defined in the DJ deposit. Indicated and Inferred Resources of 108.4 million tonnes at 0.35% Cu and 44.2 million tonnes at 0.26% Cu, respectively, have been defined in the A1 deposit.

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

[mike_f] 15/6/2012 07:46

Xstrata Copper division chief executive Charlie Sartain told Dow Jones Newswires on Thursday despite the current uncertainty, fundamentals in the copper market remains strong.

"It's very difficult to foresee what's going to happen to copper prices, but the market remains strong and should stay that way," Sartain said at a press conference in Chile.

Xstrata, in the midst of a $90 billion merger with fellow Swiss commodities powerhouse Glencore, is the world's number four copper miner. The company owns 44% of the Collahuasi mine (Anglo American holds the remainder) in Chile which is the third largest copper mine in the world.

The mine produces around 500,000 tonnes of copper per year, supplying 3% of the world's copper.

Front-month copper contracts were trading at $3.35 a pound in afternoon trade Thursday on the Comex in New York and around $7,400 a tonne in London.

Copper is down 19% over the past year. The red metal hit historic highs at the end of July last year of a shade under $4.50 a pound (more than $10,000 a tonne).

[the count of monte_cristo] 15/6/2012 07:35

Leoneobull 14 Jun'12 - 20:48 - 146

In regards the director resigning, re-read yesterdays RNS;

..The Company also announces that Brian Lueck has resigned from the Board and that his function has been changed from that of Chief Operating Officer to Senior Geological Consultant, in line with his desire and objective of bringing his geological skills end experience most effectively to bear on the Company's effort of leveraging the maximum value form the Basay Project, which is the primary focus of CDC. Mr. Lueck remains fully committed to CDC.

--------------------------------------------------------------------------------

He has resigned from the board, not the company!!! This guy is basically saying he wants to be hands on, to get his hands dirty at doing what he does best and using his experience to its full. Personally I see this as positive and was happy to read this!

[leoneobull] 14/6/2012 20:59

COPPER DEVELOPMENT CORPORATION (CDC): The latest 'exciting' drilling results support the theory that the four known deposits at Basay may be the corners of a large rectangle with the potential to comprise a major copper resource. An initial JORC-compliant resource for Basay should be completed this month but clearly it is the future potential that is really interesting. As I hinted in
the February issue, CDC has confirmed its intention to sell, or place in a joint venture, its Hinobaan Project. Within eight weeks CDC will issue a comprehensive report on Hinoba-an, which should include an increased resource and a mining plan, and CDC will hope to conclude a deal shortly thereafter. This should give it the funds to accelerate the development of Basay where it has seen 'recent
interest by several international mining companies'. BUY UP TO 25p

[leoneobull] 14/6/2012 20:57

ok now i feel better...

Why Goldman Sachs paid this mine $175 million to NOT sell its copper
Money Morning | 30 May, 2012
IN THIS ISSUE:
---------------------------------------------------------------------

Why would anyone pay a mine $175 million to not sell copper
Why Goldman Sachs is hoarding copper
Smart investors who caught on to Goldman Sachs' plan will be hoarding profits soon!
-------------------------------------------------------------------
From Francois Joubert, editor, Red Hot Penny Shares

Dear MoneyMorning reader

Goldman Sachs, I'm sure you know the name.

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It's also the very same bank that had a South African employee quit and post a very embarrassing resignation letter on the Internet earlier this year.

I'm sure you remember Greg Smith, and how he told the world about how Goldman Sachs is cheating its clients out of money, laughing about it behind closed doors and even calling everyday investors like you and I 'Muppets'!

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They're paying a mine $175 million to not sell copper

How is this possible?

Well, Rio Tinto has an old copper mine in Spain that was closed down years ago. But now, with strong global demand for copper, the company has decided to open up the mine again. But to do that it needs money!

That's where Goldman Sachs comes in.

The investment bankers have paid Rio Tinto $175 million to start up the mine again, in return for their copper.

You see, the bank doesn't want to go out and buy copper in the open market. It also doesn't want Rio to show that it's selling copper.

No, that would tell the world something about copper. It would mean that Goldman Sachs thinks copper is a good investment... It would push up the price of copper if Goldman Sachs is seen openly hoarding it.

So it's struck this deal... Invest in a mining start-up in return for copper instead of cash!

Why Goldman Sachs is hoarding copper

Well, obviously Goldman Sachs wouldn't do anything just for the fun of it...

This bank exists for the sole purpose of making money.

And that's its plan.

You see, the copper price is down 22% from its highest levels last year. That's because of expectations of softer copper demand on the back off economic worries in Europe. But according to research I did on commodities earlier this year that's hardly the case.

Yes, we're experiencing a slump right now. But by this time next year China will be buying up copper by the tonne. And that means the copper price will go up again...

So Goldman Sachs' plan is to hoard as much copper as it can right now, while it can get the metal on the cheap.

Then, when the price of copper goes up, it plans on listing a new Copper ETF.

By that time, the bank will openly punt copper as a great investment and it'll be in newspaper and magazine articles all over.

And smart investors like you that caught onto Goldman Sachs' covert copper hoarding will also be long on profits!

--------------------------------------------------------------------

Why I agree with Goldman Sachs' view on copper

I don't normally agree with Goldman Sachs on anything. I don't like the bank and the way it treats its customers. But when it comes to copper I have to agree with them. There's a shiny future for the metal...

You see, China's demand for copper isn't ceasing. In fact, China needs more than $81 Billion worth of copper by 2015!

That's almost five times more copper than the world's largest copper producer provides! One of China's most urgent needs is for 100 MILLION kg of copper to put two million electric cars on its roads by 2015. It's forced to do this because its cities are suffocating with pollution!

All you need to do is make sure you buy copper before Goldman Sachs makes its money from it... That gives you around a year to get your investments in order!

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Here's to unleashing real value!

[leoneobull] 14/6/2012 20:53

to be fair RHPS only in Feb were describing cdc as sitting on a giant copper resource...

COPPER DEVELOPMENT CORPORATION (CDC): BUY UP TO 25p

[leoneobull] 14/6/2012 20:48

well it's true that all small cap miners have been hit but having had a series of uber-bullish RNS's from jan - april this was a bit concerning (since i have prob spent 60ks on cdc shares...i.e. We've stopped drilling & a director has resigned isnt exactly a great rns title...but having said that if drilling is costly, the scale of opp is there,..but the mkt isnt looking favourably on large-scale investment maybe they're better off analysing data. what surprises me is how positive the grades have been so far...im concerned about momentum. havent sold a single share but...need reassurances from mitch! there's not much point emailing...they cant reveal athing to anindividual without release to general mkt.