Silver Stackers Forum

What sets them apart from any other junior miner that has yet to turn a sod of earth?

Not knocking them, but is there anything exceptional about CCU?

boston wrote:

Their price has slumped to circa 0.18 from circa 0.38 and from memory they had a fair amount of silver in the ground.

Just looking at their chart and ASX announcements, they seem to have been trading at 5c-10c for a long time, spiking after September 09 to 42c on the news that the silver deposit is bigger than they thought.

I dunno. The ASX took a hammering today, so there might be some potential for further drops in their share price, but with the project looking pretty viable right now it might be a good time to get in.

Maybe pick up a little bit on spec and see what happens.

Last edited by Big A.D. (2010-02-05 15:18:36)

Big A.D. wrote:

What sets them apart from any other junior miner that has yet to turn a sod of earth?
Not knocking them, but is there anything exceptional about CCU?

Apart from them being 1 of around 4 predominantly Silver mining/exploration companies available on the ASX. There are a few companies that mine Silver as a by products or secondary material, but to my knowledge the only exclusive (or primarily) Silver companies on the ASX are, CCU, SVL, AYN (formerly MMN) and CXC.

SVL has a 4m oz resource. Tiny market cap, there is potential here and I hold some.
AYN has no resource currently since MMN went into administration, they expect a resource defined early this year. Don't hold.
CXC is an international company, split over multiple exchanges and in my opinion would be very difficult to accurately value. Did hold, but sold at higher levels.
CCU - 57m oz resource, small market cap for silver they have defined, probably the Silver junior with the best potential....I hold a large parcel.

+ read the notes in the thread goldpelican linked.

On a global scale there is probably other better opportunities on the Canadian, US or other exchanges, but there is very limited choices on the ASX and this is one of the reasons I believe it will do exceptionally well once Silver takes off.

Last edited by hobo-jo (2010-02-05 16:53:05)

Given that CCU is completing a feasibility study and are doing a lot of drilling I would expect that cash burn would be high. The CR they did last year was to raise funds for the feasibility study which finishes mid this year. Following the completion of that, assuming project is worthwhile there will need to be another CR or debt facility opened to fund construction of the plant.

CCU is still an explorer, I don't see any reason that someone would expect their income to exceed costs...?

IMO while there is still uncertainty about how they will raise funds to build the plant they are way oversold at this price level.

boston wrote:

hobo-jo wrote:

IMO while there is still uncertainty about how they will raise funds to build the plant they are way oversold at this price level.

For the uninformed, such as myself, what actually does 'oversold' mean in this context?

OVERSOLD; Technically too low in price, and hence a technical correction is expected

boston wrote:

Clawhammer wrote:

boston wrote:

For the uninformed, such as myself, what actually does 'oversold' mean in this context?

OVERSOLD; Technically too low in price, and hence a technical correction is expected

Thanks Clawhammer. Is the outcome just limited to a rise in share price or, are there other variables such as more buyers/sellers than buyers/sellers which impacts the situation greater than normal trading factors?

If that question is for me...you'll have to rephrase for me a little.... I mean, share price is the 'end game' in this situation... the key measurable.  Whether a stock is being overbought/oversold is merely an interpretation of 'indicator data' .  What one analyst says is overbought/sold is based on their judgment although most use a relative strength indicator (RSI) with a buy/sell button at 30 & 70 respectively...but they may choose their own buy/sell points.  I've also learnt that there are a thousand other indicators and oscillators that'll tell you the sky is green and the grass is blue!

But it's hardly a science.... gold for instance has for a long time been 'hailed' as being oversold... and it's remained that way...despite everyone also concluding it's a 'sure thing'..... for a long time now.

My case in point; Just look at the silver price up in the top corners of the page... I mean, what the hell is driving that?

the biggest problem the market has is... the human factor.

Last edited by Clawhammer (2010-03-05 13:17:55)