South China Resources Share Discussion Threads

[nobull] 10/5/2007 18:53

Strow, thanks again for all your hard work. Yes, a staged development (i.e. waiting until you have recovered the capex before expanding the operation to cope with a higher throughtput?) of Danfeng would be less risky (less exposure to a collapse in copper prices?) than going for the maximumn throughput per annum at the start. Unlike Backe9 I don't know what the fundamentals of Danfeng are until we get the RNS. Hanging in with my 270k approx. Thanks again for all your hard work.

[davethechef] 10/5/2007 18:46

Similarily, thanks strow for up date. Frustration all round, hopefully meaty news and substantial positive developments to begin to surface given a few( several!) weeks. They need to start producing( news/up dates) or i fancy next year's AGM could be an ugly affair! Given our resolve hasn't evaporated by then!
Again thanks strow for keeping us informed of latest contact.

[tonystringy] 10/5/2007 18:27

Thanks strow.

Not quite sure what to make of it though....still, all should be clear soon enough.

[dtddtd] 10/5/2007 16:12

strow ,many thanks again.
david

[woodburnd] 10/5/2007 16:03

Strow: I do not post here very often preferring to read comments by people more knowledgeable than myself. In relative terms I have a small holding of 137000 shares. I would be very interested to be added to your list of fellow holders occasionally emailed by you. If you could send your latest offering to it would be much appreciated. Thanks.

[strow] 10/5/2007 11:54

Guys-suggest you check your boxes-btw-please dont help the shorter,if you know what i mean-deserves to be burned :-)

[strow] 10/5/2007 08:24

Well he may have picked a bad one then,as may well be making a profit later end of this year/early next and whats all that rubbish about weak fundamentals?-they may have one of the biggest copper projects in tibet currently on their hands,if they can wrap it up-wouldnt call that a weakness and how many other foreign companies have the links with the chinese bureau as scr do-in fact they stand out from many others in some respects-if the price gets held up again here,by our mystery buyer,and there sure as hell is one,then youre stuffed mate,just waiting to burn when the news does come-and it will

[master rsi] 10/5/2007 08:16

backe9

Why dont you short yourself from 9 to 5.75 and then you will have the share price on you "nickname"...........backe5.75

Talking nonesence twice in a row is a bit too much, I suspect you are a SUSPECT

[simon54] 09/5/2007 22:07

"i short companies that dont make profit"

- that would be 95+% of the junior mining sector then!

Don't you have someone you can play with?

[backe9] 09/5/2007 21:30

i short companies that dont make profit and with weak fundamentals.

[strow] 09/5/2007 09:33

Now i just think thats funny-really-there are so many shares out there that arent at the bottom of their channels to short,and you choose this one!very risky in my view as you will have to build a sizeable short to make any decent profit if you are right,and will therefore get burnt very badly if you are wrong-risk reward ratio not good-each to his own-keep looking backe9-you might do better elsewhere! ;-)

[backe9] 09/5/2007 09:22

shorting this. Price rise last weeks based on nothing. Will retrace back imo

[figure6] 09/5/2007 08:53

Before the recent rises the selling dried up almost completely.Although its only 8.50 am it does look like the sellers have been wrung out of SCR again.If we still have an interested accumulator we may see some large buying today and a resumption of the upward recent trend. (Its one thing sitting back while recent buyers sell out and send the share price down but its quite another to let PIs buy the shares cheaply that you want yourself). Theres no guarantee the price will resume its upward trend soon but I certainly wouldnt be surprised if it did.If anyone is thinking of topping up/averaging down then today could be the day to buy imo.

[strow] 08/5/2007 20:09

Thanks wendy/nobull-further 160k ?sell ?not today-didnt move the price-the plot continues-sooner or later we will get news-lets hope its sooner

[davethechef] 08/5/2007 20:03

Interesting article from minesite 3rd may( may need to register- for those not registered)
Especially last several paraghraphs


Back from hols still disappointing lack of substantial news from SCR though
Needs to change.

[wdurham] 08/5/2007 05:51

strow -

Simply scaling up production - i.e. mining and processing more ore - can't make much impact on costs. If it costs X to mine and process a tonne, doing 2 tonnes would cost X x 2. There may be some marginal savings - for instance, keeping men busier during their shift, so you get more work out of them for the same money; and if the plant is operating at less than capacity, you might be able to push more through it for the same power consumption. So maybe some very small savings. But doubling throughput won't increase profit margin by more than a fraction, although it would of course increase profit volume.

It's increasing the GRADE that makes the impact. You get more metal for the same throughput/costs, which DOES increase the profit margin per unit of production.

[backe9] 08/5/2007 01:14

i suspect this will be marked down early today guys

[nobull] 04/5/2007 09:07

Strow, FWIW I think the point about scaleablility is the risk of not recovering your capex costs is limited to a fraction of the sum expended over the years to achieve the final desired size of operation, and of course you don't have to pay for the total cost at the start. As to whether there are economies of scale or not from increasing the size of the plant, I don't know. You perhaps don't get a discount on buying your second crusher if you buy it several years after the first, but there ought to be other economies of scale?

I still do not understand the beneficiation process for Molybdenite and the copper stuff (oxide? sulphide?). Are 2 separate circuits required to produce two separate concentrates or does that Jinduicheng smelter just accept a mixed concentrate? Are there financial penalties for supplying a mixed concentrate?

Of course there is only one question I want answered (what is the Jorc Resource) , but I know AC will only answer that via an RNS on whether an investment is to be made in Danfeng or not), so no point in asking it.

[strow] 04/5/2007 08:09

Can i just ask the board a general question about scaleability? Surely if a project is scaled up in terms of number of tons per day mined,then this decreases the costs?Am i right there,and is this the general principle of scaleability,otherwise,if the costs per ton remain the same at a greater rate of mining,there would be no point in doing it as no further profit would be gained?-thanks
btw-anyone have any sensible questions for the management that they would like answered?

[strow] 04/5/2007 08:03

why?-so you can close your short?-would have thought that was a good idea mate,but each to his own

[backe9] 03/5/2007 22:10

any news coming up with this share?

[redm1re] 03/5/2007 20:15

Thanks all,

I suppose I will continue to hold, after all they can only go down another 6p! I reckon that any upside on good news might be as much as that so a 50/50 call as I have mentally written off the investment!

After all MCR came back nicely when I thought it might not

Cheers

[wdurham] 03/5/2007 18:35

backe9 - why are you reading this thread then? If you are so convinced that SCR can't make "much money out of these mines" because the Chinese will want it all for themselves, why are you bothering?

But then that's a silly question, isn't it? What's your target price - 2p? And how much drivel are you prepared to post in an attempt to force it that low?

Get real, sunshine. Bigger folk than you have a target price in mind as well. And you don't stand an earthly against them.

[backe9] 03/5/2007 18:26

cant see SCR making much money out of these mines. Chinese gov will want it all for themsleves

[strow] 03/5/2007 13:57

kimboy/simon/nobull-thanks never said prices wont fall-of course they will,but they could also rise further as well-all depends on timescale etc
Remember also my figures are based on 1% copper mirabaud used 2% and the "srk rns" also states,obviously having had the chance to review the full results in detail,that the copper grades approximate pretty well to the historic chinese figures,on which the horn report based its conclusions-anything above 1% is a bonus and it appears that most of the grading is
In addition we know that the approach is likely to be selective and targetting high grade areas first-this is likely to be VERY profitable with no tax in year one,scaling down thereafter-we will all just have to keep waiting
I agree with kimboy and think i also commented a few days back-this long wait is not necessarily a bad sign and i have a feeling that they will want everything to be in place,to get up and running as soon as possible after the announcement of intention to mine is made-it is no secret that they will want to start as soon as possible after this decision