Central African Mining & Exploration (CFM), Is anyone holding these shares? Just been looking and these seem like a good investment. There is a lot of demand for Cobalt in China at the moment and this company is going to start production in Oct this year.

What are your opinions on this?

Cheers.

Central African Shares Fall as Mukondo Mine Suspended

By Antony Sguazzin

Sept. 5 (Bloomberg) -- Shares of Central African Mining & Exploration Co., a company led by former England cricket captain Phil Edmonds, fell after it said production at the Mukondo copper and cobalt mine in the Democratic Republic of Congo was suspended.

The statement to London's Regulatory News Service confirmed a Sept. 4 report in Johannesburg's Business Report newspaper. In the same statement, the company said it ``refutes'' the article, which said the closure had shut off most of Central African's revenue.

``Mining at Mukondo, where CAMEC has a 50 percent interest through its subsidiary CRJV, has been suspended until agreement can be reached with the new owners of the remaining 50 percent on how best to develop the concession,'' the company said. Its other mining concessions in Congo include those known as C19 and C21.

Shares of the company fell 1.25 pence, or 2.4 percent, to 51.5 pence in London, after earlier dropping as much as 8.1 percent. That valued the company at 569.7 million pounds ($1.08 billion).

The London-based company took total control of Congo Resources Joint Venture, which has the right to half of Mukondo's output, from Majestic Metal Trading Ltd. on July 28. Majestic's owners include Zimbabwean businessman Billy Rautenbach, an adviser to Central African.

Rautenbach is under a contract to Central African to run its 50 percent interest in Mukondo and had rented and operated the other 50 percent from John Bredenkamp, another Zimbabwean businessman, before it was sold to the Gertler Group of Israel, Business Report said. Rautenbach suspended production after the sale, the newspaper said.

Bredenkamp declined to comment when called yesterday. Hugo de Salis, a spokesman for Central African, said he couldn't say whether Mukondo had been suspended yesterday.

Because of the content contained within the above two postings (18 + 19), the share price of this company can be expected to fall quite dramatically over the coming weeks. There may be arguments and counter-arguments but as we all know there is really 'never any smoke without fire'. In January this year the share price of this company was just 12p and if the above allegations are true then it will fall below even that price. After all, if a company's scource of income is suspended then that company loses any future profits and is rendered worthless. It was only recently that iSoft also experienced company disputes - and the share price of that company went from 460p to 50p. Anyone presently holding shares in CFM should give serious consideration towards selling them.

Ah, here you are ET. Given up trying to ruin the VED party and started on CFM have we.