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CDS - Comdek Limited

Discussion in 'Stocks 0-H' started by Wilson!, Nov 5, 2007.

  1. billhill

    billhill

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    Right on Sam. Very happy i got into this one. Good to see it moving up in a steady and healthy manner. Also no announcements and yet the price still moves positively. Could be a sign that insiders know something we don't.
     
  2. sam76

    sam76

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    Hi Michael,

    That's right they do deal in the above and the recent foray into mining is new. They have appointed new management with experience in Coal and are looking (perhaps) at a new name change as per todays announcement...

    Don't forget these guys also have some pretty exciting Uranium tenements from URANEX.

    It's all at www.comdek.com.au

    here's some more info and back ground

    Cheers

    1 Summary of Coal Projects
    Comdek has signed an agreement to acquire Isicebi, a company that has the right to
    farm-in to three coal properties owned by Lukale Mining Ltd (Lukale) in the
    Waterberg Coalfield area of South Africa. Until recently, the properties were owned
    by BHP Billiton and BP Coal, however due to changes in the Minerals Petroleum
    Resources Development Act (MPRD) Lukale, a Black Economic Empowerment (BEE)
    group have now secured 100% ownership of these properties.

    Lisbon LQ 19 (800 Hectares) is on the Limpopo river border with Botswana.

    Zoetfontein LQ 22 (995 Hectares) is immediately adjacent to Lisbon LQ 19. Both
    properties have been drilled by BHP Billiton and show the potential for significant
    tonnages of open cast coal in the lower zones of the Waterberg sequence. The
    Zoetfontein Fault also runs East-West through the middle of these farms and it is
    expected that 50% of the coal is shallow at around 16m below the surface with the
    remainder of the coal being greater than 250m deep.

    Koert Louw Zyn Pan LQ 234 (1,365 Hectares) is on the Limpopo river border with
    Botswana. This property has been drilled by BP Coal and shows the potential for
    significant tonnages of open cast coal from all zones of the Waterberg sequence.
    All the existing drill data for these three farms has been requested, with initial drill
    data being received. Dawie Van Wyk of Geocoal Pty Ltd has been engaged to review
    all this data and to complete a resource calculation to be compliant with the SAMREC
    and JORC codes. An initial inferred resource of 415 million tonnes has been
    calculated from existing drilling information compiled to date. Further data is
    currently being sourced and validated and a further update on the inferred resource
    will be announced in due course. A drilling campaign will be designed once all drill
    hole data has been acquired and assessed.

    2 Review of the Waterberg Coalfield
    2.1. Introduction
    Coal was discovered in this area in 1922 during water drilling 25km west of the town
    of Ellisras. The coal seams of the Waterberg Coalfield occur in the Volksrust and
    Vryheid Formations of the Karoo sequence. Numerous coal zones (seams) occur,
    varying in thickness from millimetres to more than 8 meters over a zone of 120
    meters. Not all these zones occur over the whole coalfield. The main coal seams can
    be correlated across the coalfield into eleven main coal zones. The coal of the upper
    seven zones (Volksrust Formation) consists of finely intercalated bands of coal and
    mudstone. This has to be crushed to at least 12mm top size and washed to liberate
    the coal form the mudstone. The coal in the bottom zones (Vryheid Formation)
    occurs as thicker, more distinct seams. The coal from the top zones produces a soft
    blend coking coal and a middlings product suitable for power generation. The coal
    from the bottom zones is suitable for power generation, charring and local industry
    consumption.
     
  3. sam76

    sam76

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    Continued from above


    2.2. Locality
    The Waterberg Coalfield is located in the North Western area (Figure 1) of South
    Africa and continues across the border into Botswana. The coalfield strikes
    approximately 90 kilometres east-west and 40 kilometres north-south.
    The main town Lephalale (Ellisras) is situated in the south-east of the coalfield.
    The three properties Comdek is to acquire an interest in are on the border with
    Botswana and are serviced by good quality roads. The Lisbon and Zoetfontein
    properties are within 30km, and the Koert Louw Zyn Pan property is within 50km of
    the Grootegeluk opencast coal mine. Immediately adjacent to the mine is the rail
    head which leads to the Richards Bay Coal Terminal (RBCT), the largest South
    African coal export port. Also adjacent to the mine are the operating Matimba and
    the under-construction Medupi coal fired power stations.
    Figure 1: Location of Lephalale (Ellisras), Grootegeluk the only colliery and the
    Waterberg Coalfield

    2.3. History
    Sasol, Anglo Coal and Goldfields Iscor have over various periods conducted coal
    exploration programmes in the Waterberg coalfield. Anglo Coal, initially in
    partnership with Shell, is currently involved in a Coal Bed Methane (CBM)
    investigation. Iscor have also conducted limited CBM investigations with Batepro as a
    partner. Anglo Coal has recently completed a number of production wells and is
    currently flaring methane.

    2.4. The new Minerals Petroleum Bill known as the Minerals and Petroleum
    Resources Development Act (MPRD)
    This act has had a profound influence on the ownership and potential exploitation of
    South African coal deposits and associated hydrocarbons. Historically under the old
    dispensation Kumba, Eyesizwe, Sasol, Anglo Coal and Billiton BHP had under their
    control most of the resources within the Waterberg coalfield. BHP Billiton and Sasol
    had prospecting permits on vast areas that were put out to tender by the
    Government in the 1980's. Large portions of these coal prospecting rights were over
    deep (>300 meters) coal measures. Sasol and BHP Billiton did not renew their old
    order rights but Sasol have successfully applied for some shallower coal areas. A
    number of small BEE companies have now applied for small groups of farms over all
    the relinquished BHP Billiton and Sasol farms.
    The result
    2.3. History
    Sasol, Anglo Coal and Goldfields Iscor have over various periods conducted coal
    exploration programmes in the Waterberg coalfield. Anglo Coal, initially in
    partnership with Shell, is currently involved in a Coal Bed Methane (CBM)
    investigation. Iscor have also conducted limited CBM investigations with Batepro as a
    partner. Anglo Coal has recently completed a number of production wells and is
    currently flaring methane.

    2.4. The new Minerals Petroleum Bill known as the Minerals and Petroleum
    Resources Development Act (MPRD)
    This act has had a profound influence on the ownership and potential exploitation of
    South African coal deposits and associated hydrocarbons. Historically under the old
    dispensation Kumba, Eyesizwe, Sasol, Anglo Coal and Billiton BHP had under their
    control most of the resources within the Waterberg coalfield. BHP Billiton and Sasol
    had prospecting permits on vast areas that were put out to tender by the
    Government in the 1980's. Large portions of these coal prospecting rights were over
    deep (>300 meters) coal measures. Sasol and BHP Billiton did not renew their old
    order rights but Sasol have successfully applied for some shallower coal areas. A
    number of small BEE companies have now applied for small groups of farms over all
    the relinquished BHP Billiton and Sasol farms.
    The result of the MPRD has changed the face of most of the coal rights in the
    Waterberg. The current situation is that a number of the smaller BEE companies who
    do not have the finance or the technical skills to conduct prospecting in the
    Waterberg are currently seeking finances and alliances to do their prospecting.
    2.6. Coal Qualities:
    The qualities in the upper six zones are similar except for zone six which has higher
    phosphorus content. The primary wash yields an excellent blend coking coal
    (typically 25% yield) and the middlings (typically 60% yield) produced suit a local
    power station type coal.
    The lower zones have very little coking coal but zones 1 & 2 have a low phosphorus
    content and coal from these zones can be used in the metallurgical industry.
    Currently the lower most coals are used primarily as a steam coal in local power
    stations.

    2.7. Resources
    The Waterberg has 40% of the total remaining coal Reserves in South Africa. The
    Exxaro Grootgeluk operation has total Resources of 6.016 Billion tonnes of coal. The
    Grootgeluk Colliery is currently the only operating colliery in this coalfield with
    production of 17 million tonnes per annum. This is separated into 14 million tonnes
    for power generation, 2 million tonnes for local use, and 1 million tonnes for export.
    Exxaro is hoping to double its coal output by 2010 - with plans to build a new mine
    for export and for supply to a new local power station Medupi.
    The project consists of three properties which cover over 3,000 hectares. Based on
    historical drilling and data obtained to date the Company has estimated an initial
    Inferred Resource of 415 million tonnes of thermal and coking coal on the
    three properties. The vast majority of this tonnage is near surface and extractable
    by open pit mining methods and is a mineable insitu tonnage incorporating a 25% to
    35% mining loss.
    A breakdown of the coal resources is given in the Table below.

    Property Sequence Tonnage
    (tonnes)
    Resource
    Status
    Zoetfontein Open Cast Volksrust 75,400,000 Inferred
    Lisbon Underground Volksrust 17,100,000 Inferred
    Koert Lou Zyn Pan Open Cast Vryheid 322,500,000 Inferred
    Total 415,000,000 Inferred

    The Company believes that if all historic drill hole data is acquired there may be
    sufficient information to complete an Indicated JORC compliant resource. The
    Company also believes that drilling will be required to further increase the resource
    classification and tonnages calculated to date.
    Figure

    3. Summary of TransactionComdek has reached agreement to acquire all the shares of Isicebi Carbon Mining
    (Pty) Ltd (“Isicebi”) a South African registered company, that has signed a Joint
    Venture agreement with Lukale Mining Company (Pty) Ltd (“Lukale”) and Umnotho
    We Sizwe Group (Pty) Ltd (“Umnotho”), to acquire an interest in, and to farm in to
    three coal licences held by Lukale located in South Africa, (the “Projects”). Under the
    terms of the Joint Venture agreement Isicebi is to:
    • Pay Lukale US$80,000 in cash;
    • Procure the issue of Comdek shares to the value of US$240,000, based on
    Comdek 5 day VWAP prior to 3 August 2007, being approximately 10,545,222
    shares;
    • Acquire a 20% interest in the projects for consideration of US$1,365,000 to
    be satisfied by the issue of Comdek shares based on a 5 day VWAP prior to 29
    October 2007, being a total of 37,557,143 shares.
    • Commit to US$5 million in exploration expenditure over 3 years to earn a
    further 50% (for a total of 70%) interest in the Projects, with a minimum
    expenditure of US$500,000 within the first 12 months.
    • Pay Lukale a royalty of 1.30 Rand per tonne of coal sold from the properties
    In consideration for the acquisition of Isicebi:
    • Comdek will buy all the stock of Isicebi for 75 million Comdek shares and 37.5
    million options to acquire Comdek shares (5 year expiry, 5 cent exercise
    price).
    • Stock is proposed to be issued in two equal tranches – the first on completion
    of the transaction and the second on completion of a positive scoping study
    within six months of completion of the agreement.
    • Comdek will reimburse Isicebi US$50,000 in expenditure to date.
    The Company will also issue 10 million options exercisable at 5.0 cents each to
    parties who have advised on the transaction.
    The agreements are conditional on Comdek and Lukale completing due diligence and
    obtaining regulatory and shareholder approval within 120 days of executing the
    agreements.

    4 Proposed Work Programme
    Following the acquisition of Isicebi, Comdek will commence exploration on the
    Projects with a view to determining the extent of coal mineralisation and whether this
    may lead to a commercial coal mining operation.
    Initial phase exploration expenditure will focus on upgrading and extending the
    existing inferred Resource and completing a scoping study into the potential for
    development of the coal deposits.
    At this juncture the Company will consider whether it is appropriate to make a
    change to the nature of its activities to a mining exploration company. In the event
    that the Company does change the nature of its activities, it will seek the approval of
    shareholders at the appropriate time, issue a prospectus and attend to the various
    other compliance requirements under chapters 1 and 2 of the ASX Listing Rules.

    5. Placement and Capital Structure
    Comdek Limited intends to carry out a capital raising of approximately $2.0 million
    upon conclusion of the acquisition. Further details of the terms and conditions of the
    capital raising will be announced at that time.
    It is intended that the Company will apply these funds towards the exploration of the
    above coal projects, Cameroon uranium exploration tenements as well as towards
    the continued expansion of the existing Fusion Communication Services Business and
    the working capital and administrative requirements of the Company.
     
  4. sam76

    sam76

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    APPOINTMENT OF CHAIRMAN AND OPERATIONS MANAGER
    Key Points
    • Appointment of Michael Hunt as Chairman
    • Appointment of Rowan Armstrong as Operations Manager
    Appointment of Chairman
    Comdek Limited (Comdek) is pleased to announce the appointment of Mr Michael
    Hunt as Non-Executive Chairman of the Company.
    Following an extensive search for an appropriate candidate to strengthen Comdek’s
    Board, Mr Hunt’s appointment brings considerable experience and skills in
    international mining law and development of mining projects.
    Mr Hunt is an experienced commercial lawyer and has provided advice on mining and
    petroleum law to local and overseas companies and governments.
    Mr Hunt is a partner of Hunt & Humphry Project Lawyers in Perth. Mr Hunt was the
    founding Chairman of Red Back Mining NL (formerly ASX listed) and now a nonexecutive
    Director of Red Back Mining Inc (listed on the Toronto Stock Exchange). In
    these roles over a period of 9 years he assisted in taking that company from junior
    Australian explorer to a listing on the TSX and subsequent gold producer at Chirano
    in Ghana and Tasiast in Mauritania.
    Mr Hunt is non-executive Chairman of A1 Minerals Ltd (ASX listed). In less than four
    years it has progressed from junior Australian explorer, to conducting a feasibility
    study, into commencing a gold mine at its Bright Star project near Laverton in
    Western Australia.
    Mr Hunt is also a director of ASX Listed Balkans Gold Limited, which was established
    in March 2006 to acquire a portfolio of south-east European gold-silver exploration
    projects within Bulgaria (an EU member country). All of the company's projects are
    located within mineral belts in Bulgaria that contain large deposits in excess of one
    million ounces.
    Operations Manager
    Mr Rowan Armstrong has been appointed Operations Manager for the Company.
    Mr Armstrong is a qualified Geologist with over 17 years in the resources industry.
    He has worked extensively throughout South Africa including with Rand Mines/Ingwe
    Group as an exploration geologist (underground and opencast) in the Witbank
    Coalfield.
    Mr Armstrong also has significant experience in mine management and planning for
    both underground and opencast mining. This includes 4 years as Mine Manager for
    Blue Diamond Mines on the west coast of South Africa.
    Mr Armstrong holds a Bachelor of Science in Earth Sciences from the University of
    Port Elizabeth and a Bachelor of Science (Hons) in Geology from the University of the
    Witwatersrand. His skills and experience will be a great asset to the Company in
    progressing the development of the Company’s coal assets in South Africa.

    Coal Projects
    As previously announced, the Company has entered into an agreement to acquire
    100% of the shares of Isicebi Mining Pty Ltd. This company has the right to earn a
    70% interest in three coal properties in the Waterberg coalfields of South Africa in
    which an initial Inferred Resource of 415 million tonnes of thermal and metallurgical
    coal has been estimated. The Company is currently undertaking a due diligence on
    the acquisition ahead of seeking shareholder ratification of the transaction.

    Resignation of Director
    Mr Ed Mead has resigned as a Director of the Company. As a result, Resolutions 4
    and 10 have been withdrawn from the Annual General Meeting to be held at 11am
    today. The Board wishes to thank Mr Mead’s efforts as a Director and wishes him all
    the best for the future.
     
  5. sam76

    sam76

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    threads always look good with pictures ;)

    One of the coal

    and one of the Uranium *Note SDL's Iron Ore tenements next door*
     

    Attached Files:

  6. BBand

    BBand

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    Hi Sam,

    CDS looks to be in a good parabolic trend, with plenty of time for more upward movement before the ultimate plunge

    Peter :)
     
  7. sam76

    sam76

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    CDS smashed through resistance at 15 cents this morning with a high of 16.5.

    Nothing much left on the sell side at all now.

    Perhaps DD/JORC due anyday now???

    Either way, things are looking very positive.
     
  8. sam76

    sam76

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    Closed on it's intra-day high of 17.5 :)

    Are there any chartists (beginner or otherwise) who want to give CDS the once over?

    Much appreiated.:D
     
  9. michael_selway

    michael_selway Coal & Phosphate, thats it!

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    Hi "Ultimate plunge" :), why do you say that?

    thx

    MS

    -----------------------

    Earnings and Dividends Forecast (cents per share)
    2007 -- -- --
    EPS -0.3 -- -- --
    DPS 0.0 -- -- --
     
  10. BBand

    BBand

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    Hi Michael,
    I was just viewing this chart from a TA point of view.

    i.e. the trend line gets steeper and steeper as the parabolic curve progresses until the rate at which the price advances is unsustainable

    A parabolic trend usually climaxes in a violent retreat

    The parabolic trend is just one of many chart patterns that are repeated over and over again, with a high probability of producing the expected historical result for that pattern.

    Its not a given that CDS will culminate in a "plunge", all that we can do is trade with "that" which gives us the highest probability of success - whatever, in our experience, "that" might be

    We can have the finest TA or FA analysis possible - all that does is give us the confidence to place our "bets" with the odds hopefully in our favour

    The market tells us if we are right or wrong

    The above is my opinion, for what its worth :2twocents

    Peter :)
     
  11. wipz

    wipz

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    Any chance they will analyse some rock chip samples from Nki for iron ore, as they are pretty close to SDL's Mbalam project.. Im sure punters would lap that up :p
     
  12. mick2006

    mick2006

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    With coal white hot at the moment, CDS which is in the final stages of due dilligence to acquire a massive coal resource in South Africa will provide massive upside once the deal is finalised (which is a no brainer really given current market conditions)

    Will post some more detailed research tonight, but can see CDS going on a COK type run on confirmation of the coal project acquisition.
     
  13. mick2006

    mick2006

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    Interesting to see a director topped up at 14c just over a week ago, that would lead me to believe they are close to announcing the finalisation of the coal acquisition, because as per ASX rules they cannot purchase shares a certain time before releasing a price sensitive announcement.

    Judging by today's action with the nice build up of interest and the fact they have a team over in South Africa at the moment putting the finishing touches on the due diligence must mean where not far away.

    Can you imagine in this climate of surging coal prices what an announcement such as the acquisition of a 400mt plus thermal coal deposit would do for the shareprice, remember not many people in the wider investment community know about this little coal gem yet.

    On the trading front the sellers are not being replaced and with large buyers appearing both on and off screen its just a matter of time before we hit the recent highs again.
     
  14. sam76

    sam76

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    G'day Mick (Poly??)

    I agree things couldn't be better atm for COMDEK. THe icing on the cake would be a doubling of resources to 800 odd million tonnes. Unlikely, :D but an increase is likely.
     
  15. mick2006

    mick2006

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    I was really impressed the way it bounced back from the recent sell off, the confirmation of the SA coal deal will be just the beginning for CDS, it is one of the few true coal spec plays on the ASX and will certainly attract headlines when they complete the deal given the current coal environment.
     
  16. gfresh

    gfresh

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    Just picked up 12-22mT thermal coal from Tasmanian operation. The dilution is a bit worrying at the moment to stitch up these deals, however longer term should be less of an issue.

    Many many bridges to cross until they can actually mine any of their resources, however does looks promising for a long-term (several year) hold. I believe in the next 5 years, it's starting to look like coal may be in very tight demand, until nuclear begins to come online in many of the developing countries.

    Doing some research, articles suggest RIO and other players are trying to negotiate a possible $80-$100/tonne for black thermal coal on the market. If this is the case, even though it's only in the ground at this stage, the amount CDS holds could be worth quite a lot indeed.

    On the S.Aff front, RIO has recently announced a 1bn coal resource discovered nearby.. and seem to be exploring further options in the area. Makes Comdek's position very interesting in this sort of scenario in the future.

    Placement and acquisition shares seems to have been done at 15c, so anything below this seems tempting.
     
  17. Wilson!

    Wilson!

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    Good post gfresh
    Its nice to see a well thought out post, based on honesty and fact

    Yes I thought today was good and a little disappointing how it was sold down at the end, and dont expect it to be at this level for long

    Interesting to see what the directors have to say on their return...
     
  18. peric1

    peric1

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    I got in at .105 and was very tempted to sell-off at .17 about a month or so ago but am deciding to hold for the medium term. I agree with the comment that anything below .15 may be value after the next placement, so it will be interesting where the share price goes from here..and yes, the late sell-off yesterday was a little disappointing.
     
  19. mick2006

    mick2006

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    with not many junior/spec coal plays on the ASX its hard to gain exposure to the rampant coal sector via a grass roots play that has enormous explorational and future production upside.

    with a huge difference in market cap between the producers MCC,GCL,FLX,RIV,CEY etc and the next up and comer COK, CDS is the only real serious spec coal play that has enormous short/medium term upward potential. CDS is likely to see a COK style re-rating as we get closer to exploration/production news from both their South African and now Tasmanian deposits.

    CDS has a massive advantage in terms of location and infrastruture making both projects extremely profitable and less capital intensive to get up and running.

    Must say I'm very impressed by the speed in which management has managed to tie up the two coal deals, it looks like they are very focussed on making CDS the stock to fill the void on the ASX left since COK has been re-rated higher.

    With talk of thermal coal prices doubling over the next two years, CDS will be in a perfect position to benefit as they release more information out of South Africa and Tasmania.

    Wouldn't rule out some broker/tip sheet coverage in the near future also drawing more attention too the company.

    with the upcoming capital raising being priced at a minimum of 15c this will create a floor for the shareprice going forward, meaning the lucky few who grab the last of the shares below that price will be getting a great bargain.
     
  20. mick2006

    mick2006

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    some very large buy orders starting to pile up right at the top of the buy depth for CDS yesterday, it may have something to do with the following article in the western australian press yesterday drawing more attention to this up and coming coal play, now with two projects one in South Africa and another in Tasmania, CDS is one to have on your watchlist if you are interested in having grass roots exposure to the rampant coal price.

    also interesting to see most of the american coal plays hitting record levels overnight, judging by the increase in buying activity yesterday maybe some of the boutique brokers are starting to have a nibble at CDS much like what happened with the rise of COK.

    Comdek sets sights on Tasmanian coal
    7-February-08 by Jenelle Carter
    Latest News


    Former satelite communications provider Comdek Ltd is expanding its coal interests into Tasmania with the acquisition of Energy Investments Ltd for $4.27 million.

    The deal comes almost three months after Comdek acquired Isicebi Mining Pty Ltd, which has the right to earn a 70 per cent interest in three coal properties in the Waterberg coalfields of South Africa.

    West Perth-based Comdek has agreed to acquire 100 per cent of the issued capital of EIL for a consideration of 28.5 million fully paid ordinary Comdek shares, with an indicative value of 15 cents per share, based on the adjusted close price for the five days trading from January 14 to January 18, 2008.

    The consideration is equivalent to 4.39 per cent of the current total issued capital of Comdek on a fully diluted basis.

    EIL has applied for the Woodbury (Turnbridge) and the Bonnie's Tier (Latrobe) thermal coal projects in Central Tasmania, close to rail and port infrastructure.

    Woodbury was the subject of extensive evaluation by three companies including The Broken Hill Pty. Co. Ltd (Now BHP Billiton) over a three year period between 1981 and 1983, but their exploration activities were ceased after plans for a thermal coal fired power station close to Campbelltown were scrapped.

    Comdek believes scope exists to significantly increase the coal target at Woodbury to 160 million tonnes of black thermal coal.

    The Bonnie's Tier project contains the area of the Mersey-Don coal field at Latrobe, near Devonport in northern Tasmania. The area is prospective for coal and Comdek intends to evaluate the tenement to establish its commercial coal potential.

    Comdek said initial phase exploration expenditure of the projects would potentially focus on upgrading and extending the existing historical tonnes of coal and completing a scoping study into potential development.

    The acquisition of the coal projects from EIL is subject to a number of conditions including regulatory approvals, completion of due diligence and EIL entering into voluntary escrow for six months with regard to 100 per cent of the issued vendor shares.

    Comdek will also issue 7.5 million shares to parties who have advised on the transaction.

    In line with its potential reinvention as a fully-fledged coal miner, the company recently appointed prominent Perth-based corporate lawyer Michael Hunt as its non-executive chairman.

    Mr Hunt is partner of Hunt & Humphrey project lawyers in Perth and is non-executive chairman of A1 Minerals Ltd and a director of Bulkans Gold Ltd and Red Back Mining Inc.
     
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