Oh dear!

seawallwalker - 11 Jan 2007 23:32 - 93 of 99
I did at 8p sold at 12p ands watched it go, I was thinking of retuning, but didn't, I wanted less than 8p, mind you it looks like it will get there of less easily now.

BTW I suspect that I smell a rat!

The recent fund raising and acquisition was a smoke screen imo, as they knew there may be trouble ahead!

Lucky boy wasn't I?

Other were luckier who sold higher, I am not greedy tough and take smaller amounts where I can.

I am gald I am out, sorry for those still in.

Smoke and mirrors.

"A disappointing drilling update from South China Resources (SCR) left shares in the junior resource group trading 1.75p lower at 5.75p. The company said that while it had encountered good copper grades at the Danfeng project in the Shaanxi Province of China, there was limited potential for the project to sustain a bulk tonnage, high-grade molybdenum mine at the current level of geological understanding, given its structural complexities."

SWW,

Well I sold as soon as I read the recent RNS that they had failed to find moly, as I thought that was a curious statement to make at the time, and just before theAGM too!

I attended the AGM, with a view to making a decision afterwards, based on a more informed view,but decided against buying as Ac didn't convince me, and he became quite aggressive (IMO) with one or two people that asked the sort of probing questions that needed to be asked.

Well I know some that held SCR as a tip from a Broker, and like you saw the RNS read between the lines and told them to sell then.

They saved a fortune!

This Company has had it as far as I am concerned, even if they turned around their fortune there appears to have been a smoke screen, in my opinion they knew what was going on, did they mislead shareholders concerning Darfang?

I ask the question, I'll let someone else answer.

For the more patient of us there is still Zhunuo to be evaluated. It is time for the company to change and focus on this resource. There may still be something for SCR holders to benefit from in the near future.

oilyrag,

Zhunuo is years away!

Director buying 350K on the 14th, reported after hours on FRIDAY............

16 February 2007

South China Resources plc

Director's dealing

South China Resources plc was today advised by Nathan McMahon, a director of the
Company that on 14 February 2007 he purchased 350,000 ordinary shares in the
Company. Following this purchase, Mr McMahon is interested in 18,350,000
ordinary shares in the Company, representing 11.5 per cent. of the issued share
capital of the Company.

Masre RSi,

That's peanuts for him, just a token gesture IMO.

The market will see right through that .

oh yummy yummy! ....what a juicy investment opportunity (not!!)

Price hike, to tempt sellers out? Why, is there a buyer mopping up?

Good morning

"UPS" (Added by Master RSI on Sun 22 Apr 10:05 pm)

SCR - Mid 6.75p
Reason - Rumours of news soon as volume has been good last week, and share price has been risng from lows lately. On the Chart an Inverted Head and Shoulders has developed and now on the BREAKOUT. Metal prices at record levels at the moment

Well, Master, it didn't quite come right after your prediction of 23rd April. Could today's price rise (upon which you kindly commented in your "UPS" post on today's TRAD thread) be a different kettle of fish?

SCR Bid: 3.5p Offer: 4p Change: 0.5, 2.5 mil traded.

My point being that the Zhunuo project is estimated, on the basis of prelim drilling plus contains the following:

China Resource Category Copper Silver
333 (Inferred) 346,200 tonnes 131 tonnes
334 (Predicted) 948,500 tonnes 267 tonnes
Total 333 + 334 1,294,700 tonnes 398 tonnes


Just taking 346,000t of Cu, that's a value of $1.73bn at a conservative long-term Cu price of $5,000/t, of which 53% accrues to SCR, or $917m/458m. If you put an value that at 1% for the exploration potential, that gives you an NPV of 4.5 million. This doesn't sound like much, but the directors (see below) reckon there could be at least ten times the amount of copper over the whole of the licence, which makes 45 million.

These resources have to be proved by drilling but, unlike the moly at Danfeng, if copper is there to be found, at least it won't disappear.

Why does molybdenum disappear? According to proactiveinvestors, moly can be very difficult to get at, as it is friable and "escapes" from drill cores when sampling.

Read full article

Sounds like a bit of a b*lls-up, and no mistake. Danfeng has now been relinquished by SCR.

But that leaves Zhunuo, which is hopefully a different case altogether.

The directors point out that sampling at Zhunuo has taken place across only a small area of the license:

"ZHUNUO PROJECT POTENTIAL

"The Directors' estimate set out above is based on areas of drilling which
measures 700m x 800m. The Directors have noted that the area of surface
mineralisation extends to 4km x 3km and believe that if drilling results in this
larger area follow the results of the area already drilled, the Project has the
potential to host a significant resource of between 3 and 5 million tonnes of
contained copper metal with credits of molybdenum, gold and silver."

3 million t Cu = $15bn or 7.5 bn, NPV 1% = 75 million, which is 12 times the current market cap.


Currently the market cap of SCR is a mere 6 million. At year-end 2006, they had 3.3 mil cash, no debt and HY losses of 900K, implying that they could trade until mid-2008 without needing to raise further funds.

3 million t Cu = $15bn or 7.5 bn, NPV 1% = 75 million, which is 12 times the current market cap.

I'm not saying anybody should buy this stock right now - that's up to each individual investor (although arguably it must be somewhere near the bottom, cos if it gets any cheaper, the SP will barely cover the cash in the bank).

I would, however, like to persuade people to revisit this stock, give their views and contribute to the debate. The stock could clearly be worth a huge amount more if drilling confirms that the copper resources are worthwhile. Could this be your next ten-bagger?

PDYOR. Brickbats and suggestions are all welcome.