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CDN - Unearthing China's Multi-Million Gold Deposits
pretax - Sun, 18 Dec 05 :
Wendy,
It's rare that I disagree with you, but regarding your last post.. well let's say there's a first time for everything.
My spin...
The presentation comes across as though CDN are batting for the same side as the Chinese, purposefully IMO. For example, Salamis's 'perception vs reality' statement: "no legal deals have actually been reneged (by the Chinese)".. even the jolly picture of the western guy being pally with a dragon (Final slide). Basically, CDN isn't just seeking to work with the Chinese, it's actively developing a longterm working partnership. Meanwhile, other Western companies are made out to appear mistrustful and unprepared to get involved. In short, this is shrewd, veiled politics; and I love it.
So why is CDN aligning itself with the Chinese.
The purpose:
1/ To maintain 'deal flow' amid competition from Chinese miners (Slide 7).
2/ To act as a consultancy service to help develop the Chinese resource sector, (i.e. to have the ear of the Chinese mining industry; not a bad thing, and it's already happening for CDN (Slide 8)).
3/ To secure Chinese investment in the absense of Western funding? "Future resource deals outside China to be funded by Chinese (Chinese FUNDING JUNIORS, Chinese TAKING OVER majors) in the thirst for resources." "New acquisitions...will be big...(and) funded from the current balance sheet and EXTERNAL SOURCES."
The following quotes are also relevant:
1/ "Western markets maintain a 'show me' attitude with respect to China delivering on resource discoveries."
2/ "Western juniors are being starved of cash, major discovery required to fuel this industry subset."
The lack of a major 'proven' discovery might account for CDN's current SP doldrums; along with Dattells and Co selling into 'weakness'.
But
"Mojiang Gold Project, advanced exploration, - highly promising." (Slide 23) (Nice to hear that GS is still happy with progress).
Could positive bankable results from Mojaing be the spark to get the SP moving. The message is deeply embedded in the presentation, but it is there.
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