Shares on issue – 625m
Share price now – $0.44
Market Capitalisation – $275m
Main Commodities – Iron (mainly in Congo), Gold, Rock phosphate and base metals.
Strategy - To acquire and invest in undervalued and distressed mineral assets and companies, and to add value to those Assets through a hands on approach to management, exploration and evaluation to enable the Assets to be monetised at a multiple. As Assets are monetised, the Company’s Board intends to follow a policy of distributing surplus cash to Shareholders.
Why i like this company is the strategy....in the past this company has returned quite some cash dividends to the shareholders once it find a seller for its assets, in fact the first time I bought this share at $0.385 on 11 June 2010, I received a dividend of 7 cents fully franked dividend a few weeks later. What was surprising is the share price actually rebounded back to $0.40 a few weeks ex-dividend! Pretty good dividend yield for such a cheap share. Since that first purchase i have continually topped up during the past few months.
What was impressive is that they took over DMM only in August 2010 for around $55m and recently signed a contract to sell DMM for $83m plus royalty from the production.....NOT bad for such a short holding period....
Tony Sage as chairman has indicated recently in news that he wanted to grow CFE to be a company with a billion sized company (around 3.6 times current market cap) http://www.theaustralian.com.au/news/arts/mining-magnate-plans-his-next-role-hollywood-producer/story-e6frg8pf-1225949108880
DJ Carmichael had a buy recommendation and a target price of $0.80 in July 2010, and calculated the sum of parts valuation to be significantly more than the share price. (http://www.capelam.com.au/IRM/Company/ShowPage.aspx?CPID=2025&EID=10216652&PageName=Carmichael%20Research%20-%20CFE%20Buy%20Recommendation%20AUD$0.80)
DYOR (Do your own research) and let me know if any thoughts. J
Happy Investing!
Irene
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