Crusader Resources (CAS)

Nice little presentation released today. There was only about 5 buy orders this morning but lots more after the announcement hit the market. Well worth a look if you are interested in Crusader:

http://www.asx.com.au/asxpdf/20131122/pdf/42l25wzchrfvr9.pdf

I dont understand what they mean by "Bankable feasibility- Positive, on hold" in regards to Borborema. Does that mean the BFS is complete but they aren't releasing it to the market?

This is exciting:
"Posse is all about the full mining licence.
Options for stage 2 (and 3, 4?)
Increases in resources, sales - many options."

"Sales of $1.2 - $1.6 Million a month." So if Crusader owned nothing but Posse and they weren't going to increase production they would have a P/E of ~4 with the current SP. BHP has a P/E ratio of 15.

Im very conflicted.. as much as I was CAS to rise towards a fair value, I also want it to go down so I can buy more.... Id rather not increase my cost basis but I might have to. :|
 
MyNamesNotBen said:
I dont understand what they mean by "Bankable feasibility- Positive, on hold" in regards to Borborema. Does that mean the BFS is complete but they aren't releasing it to the market?
Click to expand...

I think its pretty much finished, but they are not releasing it (this is my hunch) untill the gold price truely bottoms, so they can plug a connfident POG number in. The new MD is a marketing man... so I suspect he knows how to let a BFS make an entrance (at the right time). Posse will keep em going, they have a positive cash flow from Posse - so they'll survive intill they get taken over or develop further. My money is on a big mining company looking to consolidate Brazilian gold opperations.... who knows it could end up being Beadell.
 
Gold is in free fall and volume for this stock has all but disappeared. Can we bounce off the uptrend support? I don't think so, prepare yer bum holes :p

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Full mining licence granted... just like that, its worth about 30% more than what its selling for
No value is given to the Borborema project, that's just Posse valuation.
 
China concerns in the market, but CAS dont sell to china - they sell locally to Brazil, but the market lumps companies into a sector
 
Following a trading halt...

Crusader to acquire high - grade Juruena Gold Project in Brazil.

Subject to conditions, the consideration is $C650,000 payable in two tranches and a total of 2 million Crusader fully paid shares payable in three tranches.

Full announcement here
 
Anyone here still holding? I had to sell my shares recently because they were under my old mans name as I only recently turned 18 so I could open my own brokerage account. I have bought back in with double the amount of shares but now my cost basis is just under .40c :( Posse is cruising along making in excess of 10mil a year in profit. Borborema seems to be on the way to happening, by the looks of the announcement the other day. The Jurena acquisition... Exciting times ahead. Damn it hurt to sell that packet I got at .205, 130% gain!!! The decision on the posse fines treatment option is taking a long time. Perhaps waiting on drilling results first? Not too happy about the dilution, especially as Paul that director guy said there would be no more dilution. however there is many benifits to having the IFC on board. Not sure how I feel about getting that marketing mob involved.. more dilution grr. 60mil market cap.. not as much of a bargain now as you are waiting on things to happen in regards to posse fines, borborema and jurena to realise more value.
 
Yes you are very right SilverSanchez. Apart from my rainy day fund I have nearly all of my net worth invested in this stock. There is enough cash on hand to pay off their debt that needs to be done this year and about 2mil left over (?). The only real risk is a long interruption to production at posse and of course sovereign risk. The price of gold doesn't bother me too much as their estimated cash cost is low and I believe the market cap could still go higher based on just the posse mine if (when) full production is achieved. Can you come up with any other negatives? I do worry that I am being a little too optimistic though...
 
Ignoring for a sec that its never good to have all your eggs in one basket - ill just let you do what you want to do with your own money. Your young, if you loose it it will be a valuable lesson if you win big it will be great for you (just make sure you take profits at intervals and don't get greedy).

The short term is risk to commodity markets, this stock is multi commodity and investors don't usually like that. So you may get a lot of people ignoring it until gold becomes the darling again. Or if they get some poor drill results that will have a short term effect.

If your outlook is say 24 months, you may regret using all your cash so soon at your current cost base, but hey - live and learn :) you'll be ok. I think either way.
 
Well I have been saying, as well as others on hot copper that the market is yet to price in the company's gold assets in the current market cap. Yet the SP seems to move quite closely with the other goodies on my watch list. Just thought that was interesting..
 
Half year report is out. Gross profit from the Posse iron ore mine was ~$5.9mil out of ~$10mil in sales. Overall company profit was ~$1.6mil because or exploration costs (~$1.5mil) and administration related costs ect. Cash on hand around $6mil and outstanding debt $4.5mil IIRC.
$42 profit a tonne from the lump product. Fines will earn less I believe. Let's be conservative and say overall profit will be $30 a tonne for a mixture of lump and fines. Times that by 1,000,000 :)
 
Half Year report came out after asx closed on Friday it looks, so reaction Monday
Not bad to be making a profit at all against exploration costs.
If what you say is in the ball-park pretty good for a junior market capped at $56m.
Chart not suggesting much to me, but according to Nabtrade, CAS is up 93% over last 52 weeks far outpacing the asx 200.
 
If I was in Australia at the time - I would have lightened up at 46c, but missed it.
The next few months could be bumpy but I believe this company to be a takeover prospect for a bigger company
 
I could definitely see another company putting in an offer for any one of crusader's deposits but I don't think Copulous or any other major holders (IFC owns 10%) would allow a full takeover of crusader. But who knows
 
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