Posted in | News | Copper | Mining Business | Earnings

CuDeCo Market Value Halves in One Day

In a reminder of just how fast things can fall apart in the business world CuDeCo (ASX:CDU), a Queensland based mining company saw half its market value drop in one day.

The sell off wiped away $320 million from the company's market capitilisation. The drastic selling of shares was a result of an announcement made by company Chairman Wayne McCrae which caused investors to dump the shares.

The bad news was related to the copper project called Rocklands which the junior miner is currently focused on. Initially it was believed that the project resources were worth 100 million tonnes with 2% copper. Yesterday CuDeCo said that it was just 30 million tonnes with 1.24% copper.

The Gold Coast based CuDeCo plans to start mining at Rocklands near Cloncurry in 2012. The initial grades are enough to sustain a 10 year mining operation producing 3 million tonnes a year. However transactions of large number of shares yesterday has weakened the company and it could now become a takeover target.

The share dumping is being seen thanks to a website called HotCopper which allegedly misled investors. The company is filing legal action against them.

CuDeCo, according to documents filed with the Australian Stock Exchange, bought back 1 million of its own shares in the June quarter at $4.17.

Shares closed Thursday at $2.32 down from $4.79 on the 13th August 2010.

Joel Scanlon

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    CuDECO Ltd.. (2019, March 19). CuDeCo Market Value Halves in One Day. AZoMining. Retrieved on June 22, 2024 from https://www.azomining.com/News.aspx?newsID=232.

  • MLA

    CuDECO Ltd.. "CuDeCo Market Value Halves in One Day". AZoMining. 22 June 2024. <https://www.azomining.com/News.aspx?newsID=232>.

  • Chicago

    CuDECO Ltd.. "CuDeCo Market Value Halves in One Day". AZoMining. https://www.azomining.com/News.aspx?newsID=232. (accessed June 22, 2024).

  • Harvard

    CuDECO Ltd.. 2019. CuDeCo Market Value Halves in One Day. AZoMining, viewed 22 June 2024, https://www.azomining.com/News.aspx?newsID=232.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.