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Main ForumCudeco how it stacks up against the other Copper plays

  • Cudeco is soon to release its' new JORC.

    The first JORC released early 2006 was initially 1.2million tonnes of Copper Equivalent contained. This saw the price rise to just over $10.00 per share. There was contention around that figure and the resource was downgraded by 75% to fit with the then current JORC guidelines.

    Since then Cudeco has carried out a massive drilling campaign at its Rocklands area and has extended the strike length and depth by several times. If as seems more than possible as CDU was in fact correct with their initial estimates, as shown by the drilling results over the last few years, the new JORC could be increased by a factor of 4 - 5 times.... possibly up to around 4 million tons Cu equivalent contained.

    This doesn't include the nearby Mt. Wilgar Copper, Gold, Silver, Uranium anomaly or the S. W. Uranium deposit that seems to have quite high grades of uranium in Australian terms.

    When I look at the current prices that the other copper plays are running at including the recent buy into Sandfire at $1,0000 per Cu equivalent per tonne by Oz Minerals and OZ Minerals at $450 per tonne, Equinox at $660 and Pan Aust at $345 (the last two have substantial country risk) then we can start to get to grips with CDU Rocklands possible worth.

    Rocklands has similarities with the Sandfire Resources ground just acquired (20%) by Oz Minerals in that it is polymetallic with high grades of copper, gold, silver, cobalt and tellurium.

    In addition as mentioned above Cudeco also has a massive find with bonanza grades at Mt Wilgar and a large uranium anomaly to the South West. Taking that all into consideration and placing a probably low ball contained guesstimate of around 4 million tons contained then CDU with its market cap of ~$600m has probably got its present contained Copper at <$150 per tonne. This implies that a 6 - 7 x share price increase could be on the cards if CDU were to equal Sandfire's recently achieved pricing or a 3X rise to bring it into line with Equinox.

    Please bear in mind that I am heavily biased towards CDU as I hold it and that I am in no way an expert in this area.

  • Hopefully the JORC will be higher

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