CAE - Cannindah Resources - Aussie Stock Forums

Results 1 to 5 of 5
  1. #1
    Make the drill work for YOU springhill's Avatar
    Join Date
    Jun 2007
    Mental Institution

    Post CAE - Cannindah Resources

    Market Cap: $4.9M
    Share Price: 8.3c
    Shares: 59.7M
    Cash: $5.9M

    Board of Directors
    David Barwick (Chairman)
    Barry Kelly
    Andrew Gillies

    Capital Return to Shareholders
    6.5c per share capital return – total $3.9M cash
    Shareholders to vote on 25 July 2012
    If approved, shares trade ex-capital return on 27 July 2012 with cash payment on 9 August 2012
    Planet Metals post Capital Return
    •Cash at hand of approx. $2.0M (Represents Cash Backing of 3.3c per PMQ share)
    •Same Au-Cu Projects (near term exploration & drilling activity)
    •Same Management (proven corporate track record)
    •Low admin costs, overheads & low cash burn rate (Forecast $300K - $350K per quarter)

    Mount Cannindah Copper-Gold Project
    • Large gold bearing porphyry copper system
    • Similarities to Newcrest’s Cadia & Ridgeway deposits
    • 6km2 of Granted Mining Leases & >100km2 of EPMs
    • Regionally under-explored with priority large-scale targets
    •5.5Mt @ 0.92% Cu, 0.34g/t Au, 14.9g/t Ag (Measured, Indicated + Inferred)
    Mount Cannindah $6.75M Farm-In Agreement
    •Drummond Gold (“DGO”) met its min. expenditure commitments incl. 3,000m drilling. Total spend to date approx. $2M.
    •Drummond needs to spend a further approx. $1.25M to earn 51% prior to July 2013
    • Additional $3.5M in further 2 years to earn 75%
    •Planet retain minimum 25% and is effectively free-carried in the short- medium term

    Mount Borium Gold Project
    •Third phase of fieldwork underway at Mount Borium
    •Rock Chip Samples included assays up to 7.9g/t gold
    •Five samples assayed more than 4.9g/t gold
    •Drilling planned within 3 Target Zones in Sep/Oct 2012
    Attached Images
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

  2. #2
    Make the drill work for YOU springhill's Avatar
    Join Date
    Jun 2007
    Mental Institution

    Default Re: PMQ - Planet Metals

    Proposed Activities for the September 2012 Quarter

    * Finalise logistics for preparation of a drill program at the Mount Borium gold project

    * Provide support to farm-in partner, Drummond Gold as they finalise drill targets over the key regional prospects within the Mount Cannindah copper-gold project

    * Complete second phase of field exploration at the Oak River Gold/Uranium Project

    * Continue studies into the merits of the Casuarina Salt prospect

    Personally, I don't see a catalyst here to spark a SP increase. I would expect it's steady as she goes for PMQ this quarter.
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

  3. #3
    Make the drill work for YOU springhill's Avatar
    Join Date
    Jun 2007
    Mental Institution

    Default Re: PMQ - Planet Metals

    Company presentation from PMQ.
    Attached Images
    "You have enemies? Good. That means that you've stood up for something, sometime in your life" - Winston Churchill

  4. #4

    Default Re: PMQ - Planet Metals

    I however do see a fairly major catalyst for SP appreciation this quarter and arguably this month as PMQ will be drilling Mount Borium this month and with a tiny mkt cap of $1.8mn at today's close and very few shares in free hands then the the stage is set. Also we are a gold explorer at MB so keep an eye on the gold price as it is more likely to go up than down.

    I have set out some research mixed with my own comments below:

    The management seems very clued up and has a history of creating shareholder value by being excellent corporate custodians.

    This year when just about every other stock I hold has been going cap in hand to shareholders for yet another CR PMQ carried out some inspired corporate activity and actually returned $3.9mn to shareholders in a special payment a few months ago . So no need for cash any time soon as there is still $1.9mn remaining on the balance sheet.

    This shrewd operating by the management leaves the company with only 59.7mn shares in issue with the top 20 holding 59% of them as at the Annual Report. Interestingly a state owned Chinese company, Jien Mining, holds 11% of the shares.

    What is a huge Chinese company doing holding a stake in in such a tiny junior as PMQ?

    So with 59.7mn shares in issue and a SP of 3c we have a mkt cap of $1.8mn which is below our current cash level of $1.9mn. This values PMQ's main projects at minus $100k on an EV basis and gives no allowance at all to PMQ's proven management.

    Now a few comments about the projects in the PMQ stable as things stand now:

    Mount Cannindah

    PMQ has agreed a JV staged farm in with a company called Drummond mining allowing them to earn up to 75% of the project subject to the expenditure of $6.75mn over a 4 year and 9 month period.

    After Drummond's initial work on this project they have agreed to move up to a 51% stake by spending a further $1.4mn by the middle of 2013. Following this they will have to spend a further $3.5mn over the 2 years following mid 2013 (compare this to our mt cap of $1.8mn!!).

    Further details of this project are on page 6 of the Annual Report issued on 21st September.

    A link is here:


    To my mind PMQ's largely free carried interest here is worth more than the current mkt cap alone.

    Mount Borium

    Page 8 onwards in the Annual Report

    A few key bullet points as follows:

    Rock chip sampling has returned grades of up to 7.8 g/t Au, 56.4 g/t Ag with Cu, Pb and Zn also showing in useful amounts in assays.

    The tennement lies in between the existing Einasleigh and Kidston gold mines with the latter just 8Kms from Mount Borium's south border. It is worth noting that gold production at Kidston exceeded 3mn ounces.

    The tennement has a road running through it and there is a railway track a few Kms to the North.

    PMQ has access to data from previous drilling in the area and has isolated 3 priority targets for further drilling.

    Preparation work for drilling is largely complete and PMQ will be drilling during this quarter.

    PMQ has recently taken over the Oak Ridge tennement next door to Mount Borium to create one super tennement. Oak Ridge has shown historic prospectivity for Uranium having been drilled by a German explorer in the 1970s. Historic results also , as you would expect from this area, produced gold as well.

    Casuarina Salt Project

    PMQ has recently taken on this one as well for a small down payment of $65k, early days yet but more details are on page 13 of the Annual Report.

    Finally on 10th September we received notice that a private investor has purchased a 5% stake in the company for cash in what looks like a series of on market trades and on 21st September the Chairman David Barwick purchased 805k shares for cash further reducing the freefloat available to the likes of you and me.

    Ask yourself this ... is all that really worth an EV of minus $100k and a mkt cap of just $1.8mn?

    To my mind a very conservative mkt cap would put us at around $5mn and once drilling starts anything up o $10mn would make sense to me with good results likely to send it higher still.

    And for those without a calculator the following handy little table makes a pretty clear point:

    Mkt cap ...... Share Price

    $5mn ......... 8.4c
    $10mn ........ 17c
    $15mn ........ 25c

    Currently we are $1.8mn mkt cap at 3c.

    Surely I am not alone is seeing some seriously overlooked value here or have the lunatics truly taken over the asylum.

    Any comments, corrections or feedback gratefully received.

    Sorry for the long post.


  5. #5

    Default Re: CAE - Cannindah Resources

    On December 3rd, 2014, Planet Metals Limited (PMQ) changed its name and ASX code to Cannindah Resources Limited (CAE).

Similar Threads

  1. UCL - UCL Resources
    By Joe Blow in forum Stocks Q-Z
    Replies: 38
    Last Post: 19th-January-2011, 12:04 PM
  2. AND - Andean Resources
    By guycharles in forum Stocks 0-H
    Replies: 112
    Last Post: 8th-September-2010, 01:20 PM
  3. HDR - Hardman Resources
    By Lucstar in forum Stocks 0-H
    Replies: 368
    Last Post: 22nd-October-2007, 02:02 PM
  4. WMR - WMC Resources
    By sam21poddy in forum Stocks Q-Z
    Replies: 27
    Last Post: 1st-June-2005, 11:42 AM
  5. TA - Learning Resources
    By GreatPig in forum Trading/Investing Resources
    Replies: 24
    Last Post: 27th-August-2004, 11:42 PM

Tags for this Thread


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums