A lot has changed at CDY in the last year...
I shifted my outlook from considering their prior track record in reselling properties to China at a big mark up... to considering that China was shifting their own focus to buying properties themselves, and much earlier in the development cycle...
It didn't help them much this year, that CDY's focus in major projects has centered on iron and coal required to feed China's growing steel demand... in a period of time when that demand was being deliberately squashed by a combination of tight money intended to slow growth and inflationary pressures, and throttled by a deliberate slow down in the pace of growth paired with and a restructuring of China's steel manufacturing industry...
That means CDY will likely need to be shifting from a focus on "flipping" properties... to becoming a producer ?
And that... meant a need for financing the project themselves, during a period while metallurgical coal clearly has been "under-performing"...
That the market hasn't been loving them doesn't change the reality that CDY is a well managed company.
Now, a year later... and they've just completed a financing... raising $1 million from Sprott... at an average of $0.45 a share, with warrants at $0.50... which should get them through completion of the BFS on Coal Creek.
And, then, in Ghana, they've announced an (estimated inferred mineral resource of) 1.3 billion tons of 33.8% iron...
Given the nature of the source, fascinating to note that they showed up on the radar, here: theflyonthewall.com
Remarkably enough, it looks like they were being subjected to dirty tricks back in June, just before heading into a financing ? Yeah. Probably just coincidence ?
The company handled the situation exactly right...
However... the share price is now below the recent offering price...
If CDY hasn't been on your radar before now... it should be now... |
