buy cdn now its at the start of a bull in china!

Posted: Sun, Jul 8 2007. 11:58 PM IST Delhi
Corporate News

During a recent coal sale, Bhushan Steel Ltd applied for 160,000 tonnes of coal through an intermediary. It ended up with just 7,000 tonnes, enough to last it for three days at the most.
Surging demand for coal is creating a scramble among steel producers, but proving lucrative for those in the business of coal trading.
In last months online sale of the commodity, the Rs4,200 crore Bhushan tried to book coal through two traders, Metal Scrap Trading Corp. Ltd and Coaljunction.com.
Nearly half a million tonnes (mt) were up for sale, but demand for domestic coal was nearly 20 times at 9,209,070 tonnes. Hundreds of bidders paid an average Rs7 lakhper rake (3,500 tonnes)or Rs200 per tonneas theirearnest money deposit to secure supply.
Depending on the grade, Indian coal costs Rs675-2,300 per tonne, cheaper than coal imported from Indonesia and Australia, priced an average Rs2,100 and Rs3,600 a tonne, respectively.
But in the end, steel manufacturers such as Bhushan were left with no choice but to pay a 22-33% markup to coal traders who bid for the commodity along with steel makers and acquire it the same waythrough e-trading agencies authorized by coal producer Coal India Ltd.

On the rise yet again.

Any one object to a new header been given and new thread started with a link to the old one as the header doesnt stand out on the thread list?.

Fine by me.

Cheers goal, Ill give it another 24 hours just in case we have someone who doesnt like the idea.

The header at present is easily missed on the thread list.

Ill do the change over tomorrow.

Moving up slowly but surely.

latest note from Growth Equities & Research on CDN..........

"On 13th June, Caledon requested an EGM to approve the placing of 12.5 million unsecured convertible loan notes at 8.5%. The notes have an initial conversion price of 50p, representing a 20% premium to the share price and the company has the right to force conversion if the average share price exceeds 80p over a 20 day period (following the initial 18 months after the date of issue).

Caledon is raising the money to fund its working capital requirements. The company has, since its return to AIM, carried out a number of review processes. The mining arrangements have changed as the company intends to bring its operational mining activities inhouse which should provide Caledon with significant cost savings. However, in order to obtain the cost benefits, the company requires to invest in new machinery. Caledon has faced production delays as a result of a spontaneous combustion incident at the Cook mine. The effect was a longer and more costly build up to production than had been expected, setting time schedules back by 6 - 8 weeks.

The group's working capital position has also been eroded as a result of delays in delivery of and breakdown in essential equipment.

On 25th June, the company published its final results for the year to 31st December 2006. Losses for the year totaled 2 million while the company had cash of just over 11 million at the period end. At the Cook Mine, the overall strategy for the current year remains broadly intact. The company is confident that the proposed new mining methodology will deliver the productivity improvements originally projected. At Minyango, an upgrade in resource estimate from 205 million tonnes to a JORC compliant 240 million tonnes has given the board confidence to settle the second tranche of payment - A$9.6 million in shares. Infill drilling targetted at improving the JORC estimate is scheduled for the second half of 2007. A number of holes are also scheduled for the southern section of the main tenement, which to date has not been included in the resource calculations.

The shares so far, have not reflected the positive news from both projects in Australia. However, our valuation suggests that Cook alone is worth 71p, Minyango around 3.6p (though given the SRK upgrade, this figure is likely to be increased) and the group's Chinese assets another 3.4p. On that basis, at 40.5p, the shares are undervalued and ahead of a significant ramp up in production our stance remains buy"

It's only a matter of time before CDN reaches it's true value imo.

Cant be far off Goal.

Nice tick up this afternoon.

Yes, we like that.

Caledon CEO Salamis to leave; Cook mine production 9,000 tonnes/wk by end-July
AFX


LONDON (Thomson Financial) - Caledon Resources PLC said chief executive George Salamis has decided to leave the company, adding that there is no immediate plan to replace him.

It also said production at the Cook Mine has increased to about 9,000 tonnes per week by end-July, and that the first coking coal shipment of 45,000 tonnes is scheduled to sail mid-August with the proceeds expected in the first half of September.

The company said it has signed a letter of to sell Blackwatch Resources BVI Ltd and Blackwatch Mining BVI Ltd to Indochina Minerals Limited for 250,000 aud.

Caledon added that it is working towards finding a suitable acquirer for the Mojiang project.

'A total exit from China will permit management to focus all of their attention on the production of coal in Queensland,' vice president-exploration, Paul Ingram said.



tf.TFN-Europe_newsdesk@thomson.com

jr/pmi/ajb

Media comment, click HERE

Outstanding RNS today, GET IN WHILE THEIRS TIME.
cyril

Nice new thread at the link below :

http://www.moneyam.com/InvestorsRoom/posts.php?tid=12047#lastread