CMC Metals Ltd V.CMB

Alternate Symbol(s): CMCXF

Metals & Mining Industrial Metals & Minerals

CMC Metals Ltd. is a Canada-based growth stage exploration company. The Company is focused on opportunities for high grade polymetallic deposits in the Yukon, British Columbia and Newfoundland. Its polymetallic silver-lead-zinc CRD prospects in the Rancheria Silver District include the Silver Hart Deposit and Blue Heaven claims (Yukon), Amy and Silverknife claims (British Columbia). Its polymetallic projects with the potential for copper-silver-gold and other metals include Bridal Veil (central Newfoundland) and Logjam (Yukon). Its flagship property is the Silver Hart property, covering over 116 claims, 2,017 hectares, located in the south-central Yukon. It has an 80 % interest in Blue Heaven Property, which consists of over 121 contiguous mineral claims located in southern Yukon. The Silverknife Property comprises two mineral tenures covering approximately 538.3 hectares. The Amy claims comprising 16 mineral tenures (approximately 908.4 hectares) cover part of the Cassiar Batholith.

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CMC Metals Ltd

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Post by Scorison May 01, 2011 9:39am

583 Views

Post# 18513839

Rally time again in CMC?

There was a news realse from CMC Metals on Wednesday evening which made the shares rally on Thursday. You can read it here:

Final-Payment-received-on-2010-Bulk Sample
https://www.cmcmetals.ca/s/NewsReleases.asp?ReportID=453639&_Type=News-Releases&_Title=Final-Payment-received-on-2010-Bulk-Sample

CMChas announced that it received final payment of the first bulk samplewith 215 000 USD which makes the total 445 000 USD for131 tons. They also report that they arecurrently evaluating a few different buyers for the upcoming bulksample, which begins in ~ 1 months I believe. Last time they sold the bulk sample to a Chinese buyer, which of course led to relatively high freight costs. This time they look at buyers closer to Silver Hart to lower this cost.

They have really incredible grades at the Silver Hart, the bulk sample (andremember, this is not in any way processed, they just put the shovel in the ground) containing 4568 g / t Ag + 20% lead.Quite amazing grades, to say the least.

Well, if we calculate a bit on the next bulk sample we get some really interesting numbers:

A direct comparison of the levels in the last shipment would provide:

445 000 / 131 t = 3400 USD / t
With a bulk sample of 2500 tonnes it would give 2500 x 3400 = 8.5 million.
However,this was based on a silver price at 23.73 USD/oz so in otherwords, we can take the above sum x 2 and then have approximately $ 16million, which is todays MCAP.

If we instead dissect it down a bit we can get something like this:

Tobegin with, I assume lower levels in the next bulk samples, I do not knowif it will be lower but as a precaution, so I assume 3500 g/t Aginstead of 4500 g/t.
Silver, I assume to 45 USD/oz.
Bulk sample to 2500 tons.
Cost I assume to 25% of sales value.
This gives: (2500 tons x 3500 g/t) / 1.31 = 280 000 oz
280 000 oz Ag x 45 USD/oz = 12.6 million
Minus cost of 25% = 9.4 million
This would mean approximately $9 million before tax.
Market capitalization is now 16 MCAD.

NowI do not even take into account their Bishop Mill in California whichwill be able to generate cash flow as well (I expect the tailings pond to be built in July and August). The mill is expected to be ready for production around September as I understand it. Previously I had the answer 4-5 million net per year from the mill. It is a very good addition.

Anyone else think CMC looks very cheap..?

I see at least an easy double in the stock short term.

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