Epic : CDN

Web Site : http://www.caledonresources.com

Broker Note 1st Aug 2007 : http://www.caledonresources.com/Images/FileManager/192.pdf


About Caledon: Caledon is quoted on the London AIM market (Ticker: CDN). In 2006, the Company acquired two Australian coal projects; the Cook mine and the Minyango coal project, both situated in the Bowen Basin, Queensland. The Cook mine is host to a mineable reserve of 17 Mt of coking and thermal coal with a 10 year mine plan. On 21 March 2007, Caledon announced commencement of production at the Cook mine with targeted output to reach a 100,000 tonnes per month rate by the end of 2007 and 1.5 million tonnes per annum in 2008. On 14 March 2007, the neighbouring Minyango project resource was brought to a JORC standard of 240 million tonnes which was an increase of 17% on original estimates. Caledons aim is to develop the Minyango project to potentially increase the Companys production in the near-term to accompany its already producing Cook mine project.

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Caledon Resources PLC Interview With:
Mark Trevan Managing Director

Dated September 20, 2007

http://www.wallstreetreporter.com/page.php?page=featured&id=26736

Stevo,

Respect man!

I have found the need to be very very careful when taking advice from these boards, especially when it involves AIM stocks.

I just say this from experience. - In term of the facts I really dont see why Caledon is special there are lots of other mining companies around so why should they be so undervalued.

I just dont see an argument for buying them over others in the market.

I do understand your point, maybe they are undervalued because there are just so many mining stocks around with great potential, this is a supercycle after all, hopefully it will last until my retirement 20+ years to go lol.

Or if I cock it all up 29+

steveo, given my bank balance, do not follow any of my stocks........... ;) LOL


transco, you value a company on what it has, and what it is producing. Caledon should soon be producing 100K tonnes a month, that is worth around 12 million dollars sales revenue a month.

Take that level of production and put it on a PER of say 6 to 8 and what do you have ?

You have CDN being grossly undervalued at present.

They still have to prove the ABM25 can work a cutting coal........if they do, then the shares should rerate upwards.

Ok guys.

Let the SP show us who is correct!!

Kool

Seems to be answering the question? Up over 5% today.
cyril

Yes, rising nicely. Rumours of an ABN Ambro note out on CDN with target price of 93p.......will have to wait and see if the rumours are true.

My point exactly - Rumours!!
Be very wary of rumours because if they turn out to be false we are back to 20p or less!!

On what basis transco.

Please share your figures for revenues and production with us, such that your target of 20p is justified........thanks in advance.

LOL.:-)

Excuse me but Caledon does not pay a dividend and never has.
The value of the company is based on mythical figures that have yet to be realised.
I dont see the directors buying in!! I would have thought that a 50% potential gain would interest them? [[

Many companies do not pay a dividend. Thats not an answer.

There are only very limited times during a year that directors are allowed to buy shares, and certainly ahead of major news is not one time.

They have already sold coal in Sept.....how many tonnes was it ? Its in the RNS.

And what value was that at spot rates for coking coal ? Any idea ?

Taken the expected monthly production in 2008, what do you think of the expected revenues ?

transco, this is old news but this might answer some of your accusation's. The Board of Caledon (AIM:CDN) announces that, on 23 March 2007, it was notified
of the following transaction by Directors in the Company's ordinary shares of
0.5p each.

Glenda Trevan, wife of Mark Trevan, purchased 60,000 ordinary shares at a price
of 35p each (representing 0.04 per cent. of the issued share capital) and now
holds 60,000 ordinary shares. Following this purchase, Mark Trevan and persons
connected to him are interested in 60,000 ordinary shares, representing 0.04 per
cent. of the issued share capital of the Company.

Thanks Goal,

But by any standards these are very very small numbers to be almost insignificant.
Most bullish director deals are in the 100s of thousands.

Last friday it was 35,25p now 42p, thats almost 20% in a week, nice.
cyril

Yep, lovely rises of late, and plenty more to come in the months ahead, imo.

The selling should start soon........ if I am correct!!

Lots more buying coming in and moving up after a small shake.

Resistance at 39p and 42p.......if we can break up through 45p bid price then its blue sky.

Given the rise of late, its doing well to keep going.

LOL, you were not correct. Don't you think its a bit silly to pick a share thats given over a 20% rise in a short term, and then say there is going to be selling ? Of course there will be, its normal for profit taking to cut in, however, what we have seen so far, the rise is sustaining itself.

A good consolidation period of selling after a good rise is also healthy, it marks the base for another move up again in the future.


transco - 19 Oct 2007 12:53 - 69 of 70
The selling should start soon........ if I am correct!!

The day is not done yet Papal!
Dont call me silly I respect your comments. Please respect mine.
I will give you credit if I am wrong.

transco, not calling you silly, hence it was a question as such, "dont you think its a bit silly".

Up again.......if we can stay blue on a Friday (where profit taking normally happens) it will be a good sign imv.