2x new Directors interest notices released during the trading halt. Anyone care to guess at what is happening?
Slightly more than a trading halt - CCU requested a suspension from official quotation "... to allow the Company further time to finalise restructuring of its financial arrangements ..." The two Directors interest notices relate to the new directors appointed in December. Not sure whether or not it's coincidence their interest notices appear this week? :/
Capital raising by inflation of shares for existing shareholders at 20% discount... has ironically now dropped 20% loss in two days and are at a new all time low. I suspect more selling next week too. I have been keeping track on various silver ASX stocks and CCU might be a good punt soon perhaps. As soon as this cluster fcuk is over we can see where abouts the bottom is, aye. Can someone shed some light on a section on the company wrap sheet... The line highlighted, are they saying that they will keep profits from this mine as physical silver holdings? Is that what they mean by that 'reserve' portion of expected yield?
Reserve is that part of the resource that are definitely mineable (in theory). Nothing to do with with holding on to something. See here Why do you have an interest in this company? Because it's cheap? They can say they've got this many millions of ozs of resource and reserve but the overwhelming odds are that they will fail to mine them profitably. You might think it's about leverage to silver but its really about high salaries for the managements and commissions for brokers and interest for lenders. Have a look at silver bonanza Alcyone Resources (AYN) - it's literally as low as a share can go ($0.001), and AYN is the resurrection of another company, Macmin Mining, that went broke after a decade or so of losing shareholders money while directors prospered. Same asset, new story, same result. Old wine new bottles - shareholders lose again.
Yeah ok, that makes sense now. Looking at half dozen tiny cap silver stocks CCU seams to be the only one actively doing something, spending on capital etc and their net debt to equity % is in the positive now. It will definitely be speculative and I will probably spread across at least 3 PM small cap stocks. I have never bought a small cap before, but if I do, I will be writing off that cash as soon as I press that button. I wouldn't touch AYN. Way too much debt ($4mil on a 7mil cap company) and it is greatly increasing, look at the 2012-2013 increase in debt/equity, more then triples. I would say bankruptcy imminent.
Just goes to show that exploring is one thing, producing is something else. I too thought the Sprott announcement was the savior, also the recent injection of infrastructure money into the Cobar area. Too bad.
I was close to coming back in to this one, as it did very well on the big run up in 2011. For those that held out here, especially those that lost everything or near everything they invested, it is hopefully the only time it will happen to you. Be scrupulous to percentages. Every trade has a winner and a loser. As it is your money, don't be the loser.
