RE: Anyone read over the MD&A & Financials??
Posted By: drox2000
Post Time: 3/14/2008 10:37:29 PM 22:37
To address the concerns you raised re: MD&A (which I have read as well)...
1. "Burned through $3 million last year. Marketing costs have doubled." -- In the past 12 months, The stock hit a high of $1.80 (from a low of 0.10, two years back), average trading volume has very significantly increased (from almost no liquidity, to a 3-month daily trading average of 170,000) , the Blue River property has gone from exploratory to advanced development with an ever expanding resource; environmental study ongoing, leading into pre-feasibility, and the company has tripled the land package to take advantage of any possibility of further mineralization on the farther outskirts of the property.
On the marketing side -- the company went from an unknown little tantalum explorer in Vancouver to a global presence commanding respect from the largest Ta companies on the planet -- the proof of this being the fact that the international annual Tantalum conference has asked CCE to host the next annual event - Very Significant!! CE is also on the screens of several major analysts and institutions in Europe, Canada and America. Last, and of course not least, they raised almost $40 million last year.
ALL EXPENSES JUSTIFIED.
2. "Hodge is making $174,000 a year." This is a high salary for a Vancouver promoter; however with all that has been accomplished, as mentioned above, I am of the opinion that this salary is fully justified. I have seen other executives accomplishing next to nothing, getting paid more, in the name of "working on it". CCE has not only "worked on it", but accomplished what they set out to do; and continue to plow forward relentlessly on the road toward being the next major tantalum supplier.
3. "$8.2 million in ABCP with a 20% write-down." I spoke to Chris about this, and he assured me that because these funds are not required this year, they took the liberty in taking a 20% write-down. I don't fully understand the vehicle they used with this money, however it might be worth a call to the company and have them explain the strategy.
4. Strategy moving forward, what's in store. On one end, marketing efforts continue to attract institutional interest here and abroad. CCE is going to the investment show in Munich next month, and will be meeting several significant investors and potential investors. Educating the public on tantalum has been a challenging endeavor - once which CCE has accomplished with strength and thoroughness. On the exploration / development side, we can expect a series of news on both properties, and the speculation is that CCE will eventually attract senior talent to guide the company through the final stages of development to production.
Like everyone else, I too am hoping for the best of course, and expect the best from this group. This is a mature project, very advanced stage, with a strong balance sheet and high reputation in the industry. I believe the share price will reflect it's true value as we navigate the final stages toward production or take-over.
In otherwords, I believe it's time to buy more stock and hang onto your hats when the ride begins.
Rohstoffaktien RT
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