Ann: Patersons Resources Review - March 2015, page-5

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mainholm

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24/03/15

14:53

Post #: 14970321
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Originally posted by longwalker ↑

Not much of a poster on HC but coincidently today i caught up with what i term my "resource guy" who although not affiliated with any broking house had this report. A few weeks ago he wanted to catch up with me to discuss this company with me. He touched base today and showed me how it was in this report.

In the past he has put me on to other resource stocks early such as ATU and a few years ago Regis which he then said to sell in 2013 when he noted gold had turned bearish. When we caught up a while back he said his next play is Cradle which when i ask what metal, he said Niobium , i said Ni what? So he sat me down and went through what it is used for and how valuable it is in strengthening alloys. he showed me Cradle past announcements and analysed it for me.

His summary points (no particular order);
•Stock held tight with the top 20 owning a large proportion (annual report)
•Yet to move up in price so its market cap is low and you wont get overhead selling from people who previously paid higher prices for it, so blue sky potential
•He showed me his numbers based from scoping study , previous announcements and the wider industry norms and said the NPV was circa $800M.
•Unlike commodity prices of the last few years , Niobium has been stable and forecast to rise in price. There are also only 3 producers of it worldwide and no new entrants in 25 years.
•IAMGOLD sold its mine for $500M and it only had 8 years left with expansion of 30 plus years going to cost the new buyer circa $900M CAPEX.
•Cradle has open pit mining with 120mt depth of mining so low cost operation and low cost CAPEX of less than $200M to build making finance easy to source
•They have a JV with Tremont which is headed by Rob Still, my friend said this name is well known to him and throughout Africa he is a successful track record of resource project development. the JV means Tremont raise half the costs for the rest of the project which makes finance a smooth process.
•PFS is due to be released soon based on the company timeline so best to get in before it comes out.

I followed his lead and bought .

and was happy to see it in the pattersons report has a rising star.

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Nice post Longwalker. Your "resource guy" might as well been reading some of our posts on HC. It is what we have been saying too.

Cheers

CXX Price at posting: 21.0¢ Sentiment: Hold Disclosure: Held
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Ann: Patersons Resources Review - March 2015, page-5

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