Copper Company?

[shasta]

Some thoughts on copper.

https://www.livewiremarkets.com/wire...563b0-82636925

Very bullish looking at $US4/lb, I'm looking at buying back into CZI, huge cu/ni resource and OZL putting in $36m for 70%. Got to be a takeover target given the huge JORC resource.

[Joshuatree]

FND
Wetar Production Update
Trouble at the mill with up to 500 tonnes copper lost production for the year dropped the price back to a buy for me ;;DYOR.

[Joshuatree]

BTW thanks for CZI shasta very int and tiny mkt cap .

[cammo]

Avb : have held since 2014.

[shasta]

BTW thanks for CZI shasta very int and tiny mkt cap .

No worries, its a huge copper/nickel resource, and with OZL onboard looks the goods.

I have also traded TLM recently, they have a similar setup with SFR, for a very high grade near term copper project

[Joshuatree]

A few points I've picked up on CZI

"A 0.7% pure Ni mine compared to a 0.7% Ni equivalent mine like CZI have is only good on paper
ie some of the comparative BHP mines are pure Ni , which means lower processing cost and improved sales price of Ni as concentrate is not made of other minerals (Cu ) that need to be separated when sent to a concentrator and smelter as with Nebo

If their JV partner does not go through to the second stage in the next few months then the project becomes a white elephant

For a > 4mtpa project it will need around 200 employees on site I am guessing , that will require a change over of around 100 employees a week who will need to fly out on a decent sized turboporp aircraft so they will need an airfield with guessing a 1km long runway , they do not even mention that in their costings ."

Shasta do you know if there are any high grade pods that they could bring in early to mine, is there a scoping study there somewhere, thanks.

Maybe you're looking for a short trade not an investment longer time frame play? cheers JT

[shasta]

A few points I've picked up on CZI

[FONT="]"A 0.7% pure [/FONT]Ni mine compared to a 0.7% Ni equivalent mine like CZI have is only good on paper
ie some of the comparative BHP mines are pure Ni , which means lower processing cost and improved sales price of Ni as concentrate is not made of other minerals (Cu ) that need to be separated when sent to a concentrator and smelter as with Nebo

If their JV partner does not go through to the second stage in the next few months then the project becomes a white elephant

For a > 4mtpa project it will need around 200 employees on site I am guessing , that will require a change over of around 100 employees a week who will need to fly out on a decent sized turboporp aircraft so they will need an airfield with guessing a 1km long runway , they do not even mention that in their costings ."

Shasta do you know if there are any high grade pods that they could bring in early to mine, is there a scoping study there somewhere, thanks.

Maybe you're looking for a short trade not an investment longer time frame play? cheers JT

They see Nebo-Babel mine as a Ni project even though its 830kt Ni and 850kt Cu with low arsenic and impurities so a low cost project.

Succoth is 936kt Cu all within the West Musgrave project, so its scale that OZL is interested in, and give there project pipeline is a medium term option.

They are 30 km from nearest airfield, yes they have done the scoping study, Cu and Ni prices have firmed since, updated scoping studies and Stage 2 funding decisions due Q4.

For me its a longer term play/punt on Ni prices and for the large Cu resource to be a cheaper option for OZL than green field exploration.

For a MCap under 20m with a 830kt Ni and 1.8mt Cu resource, you'd think OZL would just take them over at say 15-20c and fast track the BFS.

CVV is another small cap copper company with a large resource, TLM also have a JV with SFR on a very high grade copper project which will be in production well before CZI, so i may trade in/out on CZI/TLM.

The Q4 update is critical for CZI a green light will set the SP on fire and as you say, OZL walking away puts the project back at least 5 years, although i cannot see OZL leaving such a large resource for another company to grab.

[Joshuatree]

CZI from 5.86c to 8.1c re 2/08/17
FND from 20.4c to 24c
FND has about $1.5 billion cu insitu (mkt cap re $185 mill)at great margins but it seems country risk and slightly threatening takeover offer at lowball price @ 23c back in october is holding s/p back.. Positive cash flow of $27 mill for Qtr , debt dropping fast , now re $51 mill. LOM cost for copper cathode $1.05 a lb!!!
Unaudited Full Year 2017 Summary

Hows CZI going shasta?

[shasta]

I'm in TLM at the moment, its not moved much yet its in development ahead of schedule, high grade Cu, IRR of 78% + and SFR are keen on exploring around Monty given the proximity of their De Grussa project and facilities. Less than 12 months away from production whereas CZI is still a few years away, OZL are progressing the JV can't see them walking away.

[Joshuatree]

Well FND shareholders have capitulated and the takeover play from eastern fields is over 50% acceptances now @ 23c. One of the directors has a foot in both camps, so you have to wonder if we've been played with. Quite a capitulation in the last few days. Oh well a profit is a profit, just expected more, sa la vie.

TLM has dropped a little Shasta. hard in the small/ micro caps atm