I will stop posting as I am no longer objective even though still very curious to see how this plays out and whether i should reinvest. Like most investors I was hoping for a BFS better or the same as the PFS. I was hoping for a definitive BFS that could lead to a construction decision and would force Teck, through the threat of other bidders, to back-in or buy us out. Instead we got a delayed BFS just over the required 8% that requires a lot of arm waving and weakly supported arguments to justify its valuation. I don't buy the conservative argument since management has little control over cost estimates done by independent consultants and while Teck imposed certain requirements none seem out of line with a standard FS. Besides $3.25/lb Cu (versus Galore's $2.60) doesn't strike me as conservative.

If you read my previous posts you can see I tried to do the math like any sell side analyst would and the numbers don't add up at this point even if you include the inferred. I still think there is a lot of upside but it will take time that I don't feel many investors here have. This PP was the final straw and demonstrates weak corporate governance and lack of strategy. Anyways I will stop my rant and good luck I guess.

But why does CUU need money now?? To finance an EA? But assuming Teck backs-in they would pay 100% of these costs.

And offering a full warrant exercisable at $1.00 only available to an insider with a controlling block...pretty apparent they don't have any non-public material information.

I find this PP very telling. If CUU honestly believes Teck will back-in (under the same terms as the 2002 Option Agreement) why not let Teck finance the EA 100% as they would if they backed-in?

You could argue they lose ~60 days of EA work but why would Teck wait 60 days to make a decision if they like SC? If CUU waits 2 weeks they will have delivered the BFS and Teck would likely indicate its interest in SC! Surely they must have some cash on their BS.

Full-disclosure: I no longer own any CUU (reasons below) but will buy back in at the right price/time/convincing argument. Reasons (IMHO):

1. 
   No chance of a buy-out until a new FS is published - regardless of the upside we see at SC there is no way Teck's investors would be supportive of spending +$400M (shares or cash) for any % interest in an unknown project with a worse FS than Galore Creek. The street (buy-side and sell-side) would crucify Lindsay if he did this in this environment and given the NPV is only currently $67M - it should be +$5B IMO!!


2. 
   Teck's unlikely to agree to a JV under the same terms as were agreed upon in 2002. First point, 4 year production clause. Why would Teck risk $ if the estimated construction time is 5 years? Also the 1x, 3x, 4x expenditure arrangement only makes sense for construction capex. SC probably needs $20-40M in drilling, FS work, EA work to get to a construction decision. It seems unlikely Teck would risk $20-40M if SC doesn't get the green light right away and is delayed.

I am not trying to bash CUU it just doesn't fit my risk/reward profile post-BFS at these prices. I still like SC but from reading this forum I am not convinced CUU will meet many retail investors expectations in the next year or so. My guess is Teck enters a completely new, less exciting JV arrangement with CUU and you see a reoptimized FS in the next 12-18 months.

Another interesting point on GUY was it was SRK who did both FS. It is not like some companies who don't like the economics and try again with a 'less conservative' consultanting firm (e.g. Keegan...).

IMO - all CUU needs to do is demonstrate SC is better than Galore Creek. Can anyone see a reason why Teck would build both projects simutaneously?

Guyana Goldfields published its ammended FS on the Aurora project on Friday after market close. While not a comparable project (high(ish) grade Au, O/P+U/G project in Guyana) it is interesting to see how much an effect a reoptimized mine plan had on its economics.

Feb 2012 - FS
IRR (after-tax) - 13%
NPV (after-tax) - $476M
Initial (total) capex - $525M ($1.3B)

Jan 2013 - Ammended FS
IRR (after-tax) - 38%
NPV (after-tax) - $800M
Initial (total) capex - $205M ($714M)

All pricing assumptions look to be the same ($1300/oz).

Going from 13% IRR to 38% is no small feat. It looks like GUY did it by changing its U/G mining method and gradually ramping up production.

It would be nice to see CUU better describe how the economics on SC could similarily improve. Adding the inferred won't really matter unless capacity is expanded or there is higher grade mineralization near surface. And even this needs to be better described if CUU wants to get value for it.

Can someone explain how anyone is manipulating CUU stock? Unless I am mistaken you can't naked short anymore and you also can't get a borrow for stocks under a dollar (i.e. forced to cover your short with X days after it falls below a dollar...).