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CRC, CORTONA RESOURCES LIMITED
wolverine
post Posted: Nov 12 2012, 08:57 PM
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I believe a serial pest is objecting to the treatment at Parkes. We will see soon enough if there is any merit.



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TOO MANY CHIEFS

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wolverine
post Posted: Oct 29 2012, 02:20 PM
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from Hartleys

In our opinion the merger looks attractive, providing some development
certainty for Cortona, production diversification for Unity and complimentary
skill-sets to crystallise production expansions and to unlock exploration
potential of ground holdings in Eastern Australia. We expect that synergy
benefits will be derived from the Unity’s experience in gold project
development, financial capacity, along with underground mining expertise
and Cortona’s production and exploration upside (near mine and regionally).
We expect that the increased market capitalisation and improved production
profile will provide for market re-ratings over time.

31c valuation merged company or comparatively 23c CRC



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Said 'Thanks' for this post: nifty49  
 
nifty49
post Posted: Sep 30 2012, 09:12 PM
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In Reply To: wolverine's post @ Sep 28 2012, 11:35 AM

Well I am an happy Cortona holder!

Funding issues appear to be resolved with this merger and I will be the holder of a producer with an apppreciating gold price.

Nifty

 
wolverine
post Posted: Sep 28 2012, 11:35 AM
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In Reply To: wolverine's post @ Sep 28 2012, 11:34 AM

..but the capex is definitely higher



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wolverine
post Posted: Sep 28 2012, 11:34 AM
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In Reply To: triage's post @ Sep 28 2012, 11:23 AM

The capex blowout is overstated, the last update included $11m opex and also the capex for Parkes was never included in the original DFS.



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Said 'Thanks' for this post: triage  
 
triage
post Posted: Sep 28 2012, 11:23 AM
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In Reply To: wolverine's post @ Sep 28 2012, 10:53 AM

Thanks w.

Yes it is often only history that decides whether a manager has shown steely determination or simply been pig-headed. Chris Cairns at Integra is another who appeared set to always chase the over-the-horizon stuff rather than systematically JORC up what he already had. Not sure whether they get carried away with the thrill of the chase or whether they don't want it proven that the bird in the hand is not really that flash after all. In contrast I like how workman-like the managers at Troy Resources have been in JORCing up more near-mine resources at the Argentina mine (Persius in Ghana is another that seems to understand the good sense in incremental progress).

Perhaps these blokes mix all the time with rock-kickers who have had the skill and luck and persistence to stumble onto a monster field which has been the making of them (and I guess at after-work drinks the pissing competitions are about the size of the finds rather than how much money they've made for investors).

Just reading some of the commentary around, it seems that the capex got away on Cortona a bit and perhaps this merger move may have been semi-forced on management. Notwithstanding the background to the move, I still reckon they look a hundred times more attractive than before now that they have some cashflow to back them up.



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 


wolverine
post Posted: Sep 28 2012, 10:53 AM
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In Reply To: triage's post @ Sep 28 2012, 10:18 AM

Hi Triage

I have just been trawling through some UML reports trying to get a feel for them. On the face of things applying their cashflows to Dargues Reef should be win-win.

PvB is quite approachable. I connected him with another source of finance that didn't work out for various reasons (not solely related to project economics for the record) and the feedback from them was that they felt more resource oz's would be helpful. PvB is dogged in his belief they have enough. Myself and a few other shareholders were pushing for more holes in Ruby Lode to get a resource booked there. He resisted this and continued on other regional stuff. I am not privy to their requirements for regional exploration nor do I have a great technical knowledge on issues drilling RL but as a market participant a junior with 250,000oz inventory isn't as sexy as one with 350,000-400,000oz's. The recent drill results show what I mean. Fat holes in RL but only 2 of them and "encouraging" results (but bugger all to get wet over) in regional exploration.

Anyway, it's water under the bridge now so we will see what they can do once they get stuck into Dargues.



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triage
post Posted: Sep 28 2012, 10:18 AM
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In Reply To: wolverine's post @ Sep 28 2012, 09:44 AM

Wolvie

Don't know very much about Unity but I think in the current circumstances this is a very cluey move by the Cortona management. I strongly suspect that any juniors that don't have a solid positive cashflow or at least a trunk load of cash equivalents on hand will be very exposed to what could be some more inclement economic times in the near term. Also I worry when I read stuff about how at current valuations the Australian banks have a greater market cap than of those EU banks that are listed - surely that is a red flag that things are out of kilter? - and wonder what they would do with loans to junior developers should they lose some access to foreign borrowings.

As a generalisation it seems Tasmanian goldies are not much better bets than Victorian ones - if the fickle gold seams don't get them the ballooning costs will - but the announcement states that current cash costs before royalties at the Unity mine are around $900 so there is good margin there by the looks of it.

I don't currently follow CRC but to me this deal appears to fundamentally change the nature of the beast. Full marks to the managers.

Out of interest, have you had much dealings with the CRC management team and if so how do you rate them?

TIA



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
wolverine
post Posted: Sep 28 2012, 09:44 AM
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Merger with UML...

no disastrous capital raising.



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wolverine
post Posted: Jul 9 2012, 09:52 PM
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In Reply To: mistagear's post @ Jul 9 2012, 08:58 PM

Tell me about it.



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