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  1. #1

    Post CXX - Cradle Resources

    Cradle Resources Limited (CXX) is an Australian based minerals exploration and development company that has secured options to acquire exploration tenements located in the Pilbara of northwest Western Australia. Cradle aims to focus on mineral exploration and the development and exploitation of economic mineralization which may be discovered.


  2. #2
    Make the drill work for YOU springhill's Avatar
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    Default Re: CXX - Cradle Resources


    - Cradle is to acquire a 50% interest in the Panda Hill Niobium Project, Tanzania, with a right to acquire the balance of the Project
    - The Project has an established Niobium JORC Resource with potential to be highly economic, a scoping study will commence immediately following acquisition
    - Part of the Vendor consideration is conditional upon a definitive feasibility study demonstrating a NPV10 of at least US$400M
    - The Resource is a JORC inferred 56Mt deposit at 0.50% Nb2O5 with an indicative strip ratio of 1:1
    - The mineralization is open both at depth and along strike, extensional and in-fill drilling is planned immediately following acquisition
    - The preliminary metallurgical recoveries are confirmed by historical test work
    - The Project is located on granted Mining Licenses
    - An experienced project management team is already assembled to drive the Project

    For the rest of the announcement, view here....
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

  3. #3

    Default Cradle Resources Ltd (CXX & CXXO)

    What is Niobium (Nb)?

    - Nb is currently US$41,000/Tn
    - Nb is classified as a “strategic metal” by the U.S. government, meaning there are few or no substitutes for the metal’s essential use.
    - Nb is a critical strategic metal that's only mined on three places on earth.

    High Grade Niobium is very rare
    - Only 3 existing Niobium producers world wide.
    - No new Niobium producers since 1976 (none in 37 years).
    - 6 years of higher Niobium prices have failed to stimulate any new projects.
    - Panda Hill is the only undeveloped Niobium project world-wide without known feasibility issues.
    - Panda Hill has an estimated cash operating margin of 65% at current Nb prices.

    The Panda Hill Project
    - Located in Tanzania.
    - JORC resource from historic drilling.
    - 56mt at 0.50% Nb2O5.
    - Open cut, strip ratio 1 to 1.
    - First 15mt mineable at 0.69% Nb2O5.
    - Only drilled to 100m, completely open at depth.
    - Scope to drill resource to 300m; target 3 times increase in resource.
    - Scope to increase higher grade core, target:
    - 1st 20mt at ~0.7% Nb2O5.
    - Next 30mt at ~0.6% Nb2O5.
    - No metallurgical issues, good flotation recoveries, 65%+.

    The Plan

    In the next 6 months
    - Additional drilling, focussed on the high grade core.
    - Additional metallurgical work (SGS Lakefield).
    - Update the JORC resource (Coffey).
    - Preliminary capital and operating cost estimates (Lycopodium).

    Next year
    -Definitive Feasibility Study, for a 1.5 to 2.0 mtpa project producing FeNb for direct sale to steel mills.

    The Following Year
    - Proceed to develop the Project.
    - About US$200m capital cost.
    - About US$100m estimated annual EBITDA.
    - About 4,500 tpa of Nb production (in FeNb).

    Please find attached a copy of Paterson Securities Research Note on Cradle Resources Ltd.

    Any questions please feel free to post here and the Stig will enlighten you.
    Attached Files

  4. #4

    Default Re: Cradle Resources Ltd (CXX & CXXO)

    Niobium: The Critical Strategic Metal That's Only Mined Two Places On Earth (source The Business Insider - Australia)

    Link (http://www.businessinsider.com.au/ni...-earth-2010-12)

    Investor interest in rare earth elements (REE) has exploded as of late, and for good reason. China controls up to 97% of the world supply of REEs, which are essential for use in modern technology. Prices are soaring as China slashes export quotas and shows a willingness to use these materials as a political tool. Alarmed governments throughout the world are increasingly concerned about securing more reliable sources of critical materials for strategic and security purposes. But there are other rare minerals, outside of REEs, which are also crucial to economic and national security. Niobium, for example, is among the most critical, but has received little publicity.
    That is quickly changing.
    WikiLeaks recently released a governmental list of 300 key foreign infrastructures and resources that are vital to U.S. interests. One item that came up multiple times was Niobium.
    Yet Niobium is not commonly known in the investment world. It is an element, a rare metal with anticorrosive properties. The demand and price for Niobium has increased dramatically over the past decade. It has a growing amount of applications, from computer screens and camera lenses to automobiles and railroad tracks. It is a strong metal, highly resistant to heat and wear, which is why gas pipelines must contain niobium. But its primary use is a steel hardener. Much of the imported Niobium goes toward the creation of superalloys for use in the aerospace industry and for military applications such as missiles and jets.
    Due to its relevance in aerospace and defence, Niobium is considered a “strategic metal” by the U.S. government, meaning there are few or no substitutes for the metal’s essential use. Furthermore, of all strategic metals, Niobium is regarded as one of the most highly critical. But its supplies are considered potentially at risk. This is because only a few sources throughout the world produce the metal. Almost 90% of the world supply comes from Brazil. Nearly all of that comes from only one mine. Most of the rest comes from the Canadian Niobec Mine, owned by IAMGOLD (NYSE: IAG).
    Despite the significance of Niobium, the U.S is completely dependent on imports. But Peter Dickie, CEO of Quantum Rare Earth Developments Corp (TSX.V: QRE.V and OTC: QREDF.PK), plans to change all that and snag a share of the industry’s hefty profits. His company recently acquired mineral rights to the Elk Creek Carbonatite, a large, seven kilometer-wide circular structure under the plains of southeast Nebraska. Elk Creek is a complex of carbonate materials hosting significant amounts of niobium and rare earths. The U.S. Geological Survey concluded that it “…has the potential to be one of the largest global sources of niobium and rare-earth elements (REE’s).”
    The Elk Creek Carbonatite was actually drill tested in the 1970′s and 1980′s by Molycorp (NYSE: MCP). Although the project was seen as a big moneymaker (even at 1980′s metal prices), financial constraints forced the company to cut the project and focus on a mine called Mountain Pass, which is a world-class mineral deposit that ended up supplying most of the world’s rare earth for a time. Although Elk Creek was largely forgotten, for Dickie, acquiring the rights came down to being at the right place at the right time. Luckily for him, the data is still available from the 110 test holes Molycorp drilled. “The records are in phenomenal shape,” says Dickie. Results show that 40 million tons of high grade Niobium lie at Elk Creek. The data also reveals very significant intercepts of recoverable rare earth elements.
    And there is plenty of profit to be made in the Niobium industry. The world’s largest mine in Brazil rakes in a $1 billion profit annually. IAMGOLD’s Niobec mine accounts for a large portion of that company’s bottom line. It also has an attractive operating margin nearing 40%, which pulls in about $19-$21 per kilogram produced. “The Elk Creek Carbonatite is structured quite similarly to Niobec,” notes Dickie. “The main difference is that Elk Creek is larger and is a higher grade.” Dickie plans on leveraging this higher quality Niobium and the proximity to U.S. markets to grab a significant portion of the domestic market.
    “Niobium is necessary for the economic and national security of the country,” Dickie points out. Yet there are only a few sources of the material. And that clearly has Uncle Sam worried. The House of Representatives recently passed the Rare Earths and Critical Materials Revitalization Act, with broad support, by a vote of 324 to 92. The bill aims to enhance competition by supporting the domestic production of strategic materials—including niobium. Although it may be a while before mining begins, Dickie hopes the “far-reaching” bill will help boost the development of Elk Creek.
    Washington recognises the value of Niobium and wants to secure domestic sources. This has Dickie excited. “We currently have the only potential domestic source of Niobium,” he said. On top of this, it is one of largest in the world. “Some of the projects I’ve been involved with in the past initially looked extremely positive, but had lots of ‘if’s,” says Dickie. “This one doesn’t have the ‘if’s.’”

  5. #5

    Default Re: CXX - Cradle Resources

    Niobium Market and Reasons for Growth

    • U.S. imports 100% of its Niobium supply -
    • Niobium production is highly cincentrated in Brazil which produces (92%) the rest is produced in Canada (8%)
    • Niobium is considered a “strategic metal” by the US, as it is essential for National Security and industry
    • European Union classify Niobium as a “critical metal” - lack of substitutes, no European production
    • “Niobium demand has grown at a 10% compound annual growth rate over the last 10 years and is forecast to increase steadily going forward.” Carol Banducci, CFO, IAMGOLD
    • Only 10% of worldwide steel production contains niobium – expected to rise to as much as 20%
    • Developed countries utilize roughly 100 g/t of steel – while China only utilizes 40 g/t
    • China produces almost 40% of world steel, but currently consumes a much smaller percentage of world Niobium production than their steel production would suggest, but they are expected to grow their Niobium consumption to match steel production.

    Who Produces Niobium and Where

    Brazil is the world’s largest producer of niobium (92%), followed by Canada. Brazil has two of the largest niobium deposits in the world, the Araxá and the Catalão deposits. The Araxá mine is operated by CBMM, decreasing grades are increasing operating costs at the mine. The Catalão mine owned by Anglo American Brazil, may run out of ore if the deposit size can not be increased. The third-largest producer is the Niobec deposit in Quebec, owned by IAMGOLD Corp. Niobec’s grade of Niobium is falling the deeper they are being forced to mine.

    Niobium Prices Niobium prices are negotiated between buyers and sellers and does not have a spot price like most commodities. Prices have risen steadily since the year 2000 to $42 a kg (US$42,000/Tn) in 2013. With only a few producers, the lack of new supply expected to come on stream anytime soon and increasing demand niobium prices are expected to remain high.

    ALL THREE CURRENT PRODUCERS HAVE ANNOUNCED PRODUCTION INCREASES TO MEET ANTICIPATED DEMAND – We see this as a very strong vote of confidence that additional production is needed from new sources such as Elk Creek. Still this new supply will not keep up with demand. Demand will thus have to be met by one of the main development projects.

    CBMM plans to increase capacity from 90,000 tpa to max capacity of 150,000 tpa by 2015, the 2 other producers Iamgold and Anglo combined have a maximum capacity of 20,000 tpa *(if their expansion plans go as scheduled).

    CAGR (Compounded Annual Growth Rate) for next 5 years is expected to be at least 10%.

    Global market is estimated to reach 180,000 - 200,000 tpa by 2018 – 2020. Supply is expected to be a maximum of 170,000 tpa.

    Based on expected CAGR, the current 3 producers will not be able to meet demand for FeNb by the end of the decade.

    New demand will have to be met from new Niobium development projects.

    Please note that I have a financial interest in CXX & CXXO.

  6. #6
    Ralph Nelson Elliott Porper's Avatar
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    Default Re: Cradle Resources Ltd (CXX & CXXO)

    Quote Originally Posted by TheStig View Post
    Any questions please feel free to post here and the Stig will enlighten you.
    Wow, what a chart. No volume whatsoever and lost 20.0% since the beginning of the year. Just gaps around as the odd person buys $400.00 worth of shares. I suppose you only have to get 1 or 2 buyers and it could double.

    Seriously though it's an out and out gamble, could double or could de-list just as easily. Buyers beware.
    My posts are for educational purposes only and should not be taken as financial advice in any way.

  7. #7

    Default Re: CXX - Cradle Resources

    Good morning Porper

    CXX had in initial run last year on the announcement of the Panda Hill Project purchase. They maintained 22 cents until the last round of market bumpiness leading up to their successful capital raising of $2.26M announced on July 26.

    Because the CXX share price had dropped to 15 cents they did a three for four reconstruction to consolidate all shareholders to the same level of the new investors acquiring $2.26M at 20 cents. This is all due to legal changes of the ASX listing rules in relation to reverse takeovers.

    Cradle Resources Ltd is now well capitalised with $3M in cash, a great new management team, an excellent project and good news flow over the next six months.

    The Patersons Research Note is factual and they have a 47 cent per share target in writing so I would hope that you take the time to read it and appreciate the opportunity.

    You are most welcome to email me direct to discuss any questions you may have.

    Thanks for taking the time to research CXX.

    Once again I disclose that I have an interest in CXX & CXXO.

    "Wisdom comes from experience, both good and bad" - Smith

  8. #8
    Ralph Nelson Elliott Porper's Avatar
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    Default Re: CXX - Cradle Resources

    Quote Originally Posted by TheStig View Post
    Thanks for taking the time to research CXX.
    Ha-ha, you are quite good Stig. Any response an opportunity to pump your penny dreadful. I have only researched the chart which is enough to put me off big time. As I said, a pure gamble. I'll leave you to it.
    My posts are for educational purposes only and should not be taken as financial advice in any way.

  9. #9

    Default Re: CXX - Cradle Resources

    My pleasure Porper

    Niobium: Strategic Metal for Western Industry and Defense

    Also included on the European Commission’s list of 14 critical metals and among the British Geological Society’s (BGS) top 10 essential elements, niobium is considered a strategic metal by the US government as its primary uses are in the production of materials needed for critical industries including automotive, nuclear, defense, oil & gas and electronics. Its use as a superalloy in the production of high performance aircraft makes it strategically important to the US military.

    In late 2010, Wikileaks posted a list of global metals mines and facilities that the US Department of Homeland Security considers so vital to US interests that they should be included under the National Infrastructure Protection Plan. The list included niobium resources in Brazil, the United States’ main source of supply.

    For now, the US does not have a niobium mining industry and must rely solely on foreign imports of the metal, namely from Brazil and Canada.

    As of 2011, BGS estimates put global niobium ore reserves (proved and probable) at around 485 million tonnes with more than 93 percent occurring in Brazil and 7 percent in Canada. Global production nearly mirrors reserves with Brazil responsible for approximately 95 percent with Canada picking up the remainder.

    In 2009, the US acquired 69 percent of its ferro-niobium, 91 percent of its niobium metal and 86 percent of its niobium oxide from Brazil, the vast majority of which comes from the world’s largest niobium producer, Companhia Brasileira de Metalurgia e Mineração (CBMM). The company owns the Araxá pyrochlore deposit, which is responsible for nearly 70 percent of global niobium supply.

    China’s tightening grip on global resources

    Who else relies heavily on Brazilian niobium production? China. The world’s leading stainless steel producer and a major producer of alloy steels, it is not surprisingly that China has the world’s largest and fastest growing market for niobium, representing 25 percent of total consumption in 2010.

    According to BGS, primary global reserves and resources of niobium are enough “to meet global demand for the foreseeable future.” However, that future would have to take place in a world where all nations share equal access to global natural resources; and if the chronicles of human history are any indication sharing resources is something few nations are willing to do.

    China has earned itself a world-renowned reputation for bogarting resources; so much so that the US and European Union brought monopoly charges against China before the World Trade Organization which ruled in July of 2011 that the Asian nation was in fact purposefully restraining trade by restricting the global supplies of several key minerals of which it is the major supplier.

    China’s strategies in its quest to dominate the global resource market also include buying up or taking significant positions in mining projects around the world. In September of last year, a Chinese consortium comprised of steel producers Baosteel Group Corp., Shougang Corp., Anshan Iron & Steel Group Corp. and Taiyuan Iron & Steel Group Co along with China’s CITIC bank purchased a 15 percent share in CBMM.

    The purchase came on the heels of another 15 percent buy-in from a Japanese-Korean consortium in March of 2011.

    The CBMM purchase has strategic importance for these Asian nations as it cements supply lines for niobium; but it spells further trouble for the U.S.which depends upon Brazil for nearly all of its niobium supplies. The only other major niobium producer and the sole publicly-owned niobium miner in Brazil’s Anglo American (LSE:AAL) which in 2010 had a 8 percent share in the global niobium market.

    As China’s demand for niobium increases, its position in CBMM may as well, putting further pressure on US supply.

    Alternatives to Brazil closer to home.

    America’s alternatives to Brazil include Canada—home to the world’s third major niobium deposit, the Niobec mine in Quebec, owned by IAMGOLD (TSX:IMG,NYSE:IAG) which also has a 8 percent share in the global niobium market.

    Securities Disclosure: I have a financial interest in CXX & CXXO, I have been a senior mining executive for more than 20 years and I know what I am talking about and do my research.

  10. #10

    Default Re: CXX - Cradle Resources

    Hi Porper (tried to send this as private email to you but your inbox is full so here it is)

    It is clear that you are a technical trader, fair enough.

    It is unfair to apply technical analysis to CXX as it is essentially a new listing since it started trading again post capital raising and successful vend of project along with a new management team.

    Short term technical analysis demonstrates an ascending triangle pattern with break-out confirmation today on volume confirmation.

    The medium term technical analysis (ignoring my new listing comment) shows a down trend reversal.

    The long term technical analysis (as with medium term comment) shows that the stock has consolidated within a range of 23-25 cents and we are waiting a break-out pattern to emerge by trading above 26 cents.

    Don't get me wrong, I am a technical trader as well as yourself, however, a stock has to start from somewhere and start trading from fundamentals prior to technical analysis being successfully applied.

    As, per my post I disclose that I have a financial interest in CXX & CXXO.

    Always appreciate input from others with different points of view as this is what makes a market.

    Cheers the Stig
    PS I am a kiwi too, living here on the West Island ha ha

  11. #11

    Default Re: CXX - Cradle Resources

    Source (http://www.mining.com/roskill-niobiu...trength-62281/) May 3 2013

    The global niobium market rebounded quickly from the slump in consumption in 2009. By 2011, demand had returned to near peak levels.

    Recovery slowed in 2012 but a return to long-term growth is certain, according to a new report by Roskill.

    Niobium is used mainly as an alloying element for certain types of high-strength and stainless steel, where it is added in very small amounts per tonne. It also has applications in superalloys for aerospace and land-based power generation and in superconductors.

    In most of the market segments, demand is very closely linked to overall economic trends. In the case of steel, however, a major driver of future demand could be growth in the intensity of use of niobium.

    Several countries with large steel industries have high forecast rates of growth in production, notably China, India and Russia, but have intensities of use for niobium far below the world average and very much lower than the mature industrial economies. There is significant potential for an increase in niobium demand that is well-above the underlying economic trends that will govern total steel production.

    Even with the anticipated growth in demand for niobium, there is little risk of supply moving into deficit. There is currently sufficient production capacity for ferroniobium and other products, such as high-purity niobium oxide, and that capacity will be increased further by the existing producers.

    Niobium prices are historically very stable and demand-inelastic. A step increase in prices occurred from the mid-2000s, after which stability was restored.

    View the Roskill summary (http://www.roskill.com/reports/steel-alloys/niobium).

    Securities Disclosure: I have a financial interest in CXX & CXXO, I have been a senior mining executive for more than 20 years and I know what I am talking about and do my research.
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    All key advancements occur through crisis and survival. Without stress and extreme challenge, one can not meet our true potential. - Smith

  12. #12

    Default Cradle Resources Ltd (CXX & CXXO)

    Japanese and Chinese consortiums pay US$3.75B for stakes in worlds largest Niobium Producer.

    Source: Reuters SHANGHAI, Sept 1 | Thu Sep 1, 2011 4:14am EDT

    (Reuters) - China's Citic Group has teamed up with stainless steel producers Taiyuan Iron and Steel and Baosteel to acquire a 15-percent stake in a Brazilian niobium producer for $1.95 billion, the official Xinhua news agency reported on Thursday.

    Companhia Brasileira de Metalurgia e Mineracao (CBMM) is the world's largest niobium producer. The metal is mainly used to produce superalloys for high-tech sectors as well as to make stainless steel.

    The deal will be completed on Thursday, Xinhua reported, without citing sources.

    A consortium of four Japanese companies -- JFE Holdings , Nippon Steel , Sojitz Corp and government-funded Japan Oil, Gas & Metals National Corp -- as well as South Korea's National Pension Service and Posco , bought a combined 15 percent stake in CBMM for about $1.8 billion in March.

    Note: Japanese and Chinese paid to gain access to Niobium.

    Securities Disclosure: I have a financial interest in CXX & CXXO, I have been a senior mining executive for more than 20 years and do my research.
    All key advancements occur through crisis and survival. Without stress and extreme challenge, one can not meet our true potential. - Smith

  13. #13
    Administrator Joe Blow's Avatar
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    Default Re: CXX - Cradle Resources

    TheStig, please note that all sources for posted articles must be cited in the post they are quoted in. If those articles are copyrighted, only a small portion of the article may be reproduced here at ASF. You can find further details regarding copyright here: http://www.aussiestockforums.com/for...ad.php?t=10373

    Also, if the article does not directly relate to the company under discussion, it would be helpful if you could explain its relevance.

  14. #14

    Default Re: CXX - Cradle Resources

    Thanks Joe

    Good point(s)...

    Will be clearer in my future posts on CXX & CXXO.

    Securities Disclosure: I have a financial interest in CXX & CXXO.
    All key advancements occur through crisis and survival. Without stress and extreme challenge, one can not meet our true potential. - Smith

  15. #15

    Default CXX - Cradle Resources

    The niobium industry offers big profit ventures to metal miners and suppliers.

    Recently published feature on Niobium - Great news for Cradle Resources Ltd CXX & CXXO.

    Source (MERDAQ Metallurgy & Metal Working 20.08.2013)

    Titanium, palladium might be precious metals but niobium is one which is topping the list of rare metals. This critical earth metal is mined only at two places in the entire world. The shortage in its supply makes it one of the least available materials in the metal products industry. For some reason, niobium and niobium scrap is not famous in investment markets. It is little known amongst metal investors who fail to see that niobium scrap will be gaining a strong demand in the future.

    Rare Earth Elements (REEs) are found mostly in China. The country controls up to 97% of the global supply of rare earth elements. Niobium is not counted in the REE list but is extremely crucial for the economy. In a recent report that was released by WikiLeaks, Niobium emerged as one of the metals out of a list of 300 that are crucial for the interest of The United States.

    The metal has anti-corrosive properties which makes it all the more necessary. Niobium can emerge as a future power metal soon owing to its distinguished traits and scarce availability. The metal has come into light over a past decade. Its prices and demand have risen over the recent past. The metal is finding a number of usages in the industry which has resulted in markets quickly understanding the usage and properties of this metal.

    Due to the importance that it holds to the aircraft and the defence industry, niobium has been titled as a strategic metal by the government of the United States. The metal is being now demanded and used in computer screens, lenses of cameras as well as in manufacturing railway tracks. The metal has excellent properties such as heat resistance, sturdiness and resistance to corrosion. Therefore, it is the main element used in steel hardening. Niobium and niobium scrap is used in creating superalloys that can be used in the aerospace industry.

    Amongst the metals that have been declared as ‘strategic metals’ by the United States, niobium is the most critical. The metal is termed as critical because there is no other metal that can substitute its properties and uses. Despite so many uses of this metal and its rising importance, it is a matter of worry that there aren’t many sources for obtaining the metal.

    The niobium industry offers big profit ventures to metal miners and suppliers. The world’s largest mine where niobium is located in Brazil. The mine earns a huge yearly profit by the supply of niobium, which currently stands at $1 billion. The mine in Brazil earns an attractive operating profit of nearly 60 percent.

    Even though the metal is extremely important for the United States, the country is completely dependent on its exports. The suppliers benefit a great deal from exporting it overseas. Domestic markets of countries that produce niobium earn a good value even by supplying niobium scrap. The metal is making a widespread impression on global markets. However, it must be used judicially for it is not an easily available metal.

    Securities Disclosure: I have a financial interest in CXX & CXXO.
    All key advancements occur through crisis and survival. Without stress and extreme challenge, one can not meet our true potential. - Smith

  16. #16

    Default Re: CXX - Cradle Resources

    Cradle MD Grant Davey presenting at Africa Down-Under in Perth today.

    Good to see the benchmarking of the Panda Hill Niobium Project (proposed 2Mtpa open cut) against IAMGold's Niobic Niobium Mine (2Mtpa under ground operation). IAMGold has a US$2.3B market capitalisation.

    Please find attached a copy of the presentation being given today.

    Securities Disclosure: I have a financial interest in CXX & CXXO.
    Attached Files
    All key advancements occur through crisis and survival. Without stress and extreme challenge, one can not meet our true potential. - Smith

  17. #17

    Default Re: CXX - Cradle Resources

    Hello traders,

    Outstanding ASX announcement by CXX today (please see attached).

    I really like the following quote by Cradle MD Grant Davey, "We are excited about the first batch of assay results - they indicate that the historical grade results can be met and in some cases improved on, and that we are encountering deeper trends of mineralisation than was identified by the previous drilling. The one intercept of 116m at 0.76% Nb2O5 is significant and increases the previous niobium resource in this area. At current gold and copper prices this is equivalent to 116m at 4.5g/t Au or 3% Cu and is located near surface"

    Brought to you by the SIG

    Securities Disclaimer: I have a financial interest in CXX & CXXO.
    Attached Files
    All key advancements occur through crisis and survival. Without stress and extreme challenge, one can not meet our true potential. - Smith

  18. #18

    Default Re: CXX - Cradle Resources

    Someone i know mentioned today cradle was being mentioned in this forum, funny enough i have mentioned it in another trading forum website.....

    Coming from the oil and gas background i understand the importance of Niobium as a resource and also appreciate that the market does not know its value unlike a company saying it has struck a big gold, copper or nickel find..

    I like to seek out resource stocks at infancy too Stig and yes Porper for those technically minded it wont show up on a metastock explorer until it has moved up much higher in price but that is what is great about markets it has so many ways of making money.

    To me the fundamental story of a resource find is what I like for, being from Perth there is a bit to research, does the numbers stack up (refer to cradle website for the pattersons research note) a very conservative financial modelling derives a 12mnth 47c a share target (not including future technical chartist demand)...today's announcement will reassess that valuation based on the initial assay results being better than the JORC study. A africa down under conference recently here in Perth the MD presented and compare the IAMGOLD mine to similar like Panda , IAMGOLD has a $80M EBITDA p.a. work out P/E ratio of 8 and future valuations for cradle.

    Second thing i like to look for is the management , the people behind it, afterall its people that deliver results.

    Bit of snooping around top20 looking at the two biggest shareholders and you get craig burton and ian middlemas's private company areedo, middlemas funny enough has experience in Tanzania already he took Mantra resources to a successful takeover of $1Billion , more recently he is behind papillion, burton has mirabela and panoramic resources to his credit...these stocks all went from small beginnings to large plays..

    Fundamentals of good resource, proven management, and financial modelling of undervalue is what i go snooping for.

    Disclaimer: I own CXX

  19. #19

    Default Re: CXX - Cradle Resources

    Some fundamental analysis when compared to Sirius (SIR) and Papillion (PIR) and also a major shareholder of Ian middlemas who is involved with Cradle as well.

    SIR diggers and gold presentation dated 5th aug had Nova at a 14.6Mt resource with @2.2%Nickle or 5.4% Copper (Cu) equivalent or = 788,400 tonnes of Copper equivalent.

    Cradle annc this week had a 3% Cu equivalent on a 56Mt resource = 1,680,000t Cu equivalent of niobium. the annc also saying potential for a larger resource of 56Mt as outlined in the historical JORC.

    market cap of SIR $700M, CXX $35M

    Papillion (gold find)
    presentation dated 28th aug, states
    4.2Moz gold resource

    Cradle annc puts the niobium assay results at 4.5g/t gold equivalent. now for my math work 4.5g/t of gold = 0.144oz/t with 56Mt resource = 8.1Moz of gold equivalent resource of niobium , double the amount of Papillion .

    Market cap PIR $415M vs Cradle CXX $33M

    please let me know if my analysis is incorrect, before i get too excited by this, i feel like i have come across a rough diamond, in some ways it's a pity Cradle dont have a gold, nickel or copper resource since the market would probably get it, but Niobium needs more education. that is why i like how they put this week announcement in Cu and gold equivalents....

    Discalimer: I hold CXX

  20. #20

    Default Re: CXX - Cradle Resources

    I did some fundamental analysis compared to two star performers of the ASX market Sirius (SIR) and Papillion (PIR) which Ian Middlemas is involved with both PIR and Cradle.

    Papillion (gold resource)
    company announcement presentation of Papillion dated 28th Aug PIR has 4.2Moz gold resource

    cradle assay results this week suggests 4.5g/t gold equivalent of niobium.

    4.5g/t = 0.144oz/t
    Cradle historical JORC suggests a 56Mt resource =
    56 * 1,000,000 * 0.144 = 8.1Moz double the amount of gold equivalent to Papillion.

    market cap of PIR $415M vs cradle of $33M...


    diggers and gold presentation (source from company annoucements 5th aug for Sirius) that says Nova-bollinger resource is estimated at 14.6MT @ 2.2%Ni which is a 5.4% Copper (Cu) equivalent or 788,400 tonnes of Cu equivalent..

    Cradle this week announcement said Niobium results is 3% CU equivalent gives 1,680,000 tonnes of Cu equivalent or twice the quantity of Sirius, and in the Cradle annc this week it mentioned likely the resource find could be larger than the 56mT JORC study....

    Market cap of SIR is about $700M , CXX about $35M..

    should i have reason to get excited by Cradle? ..its a pity they dont have a gold, nickel or copper resource i think the market might understand the story better, i its market education about the value of Niobium.

    let me know anyone if i am off base with my numbers...

    Disclaimer : I own CXX

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