The copper explorer Cudeco appears to have been desexed. It is three years since its executive chairman, Wayne McCrae, assured a Sydney Mining Club lunch that his main Rocklands deposit was "as good as a dog with two dicks".
Yesterday Cudeco finally released its long-awaited Joint Ore Resource Committee update, which came up far short of what the market was expecting.
"Well, the new updated resource has been completed ... What does it mean for Cudeco?" McCrae asked in an announcement to shareholders.
It meant a 49 per cent plunge in the company's share price.
At least McCrae has thick skin. "I couldn't give a cold pie what anyone says or thinks about me. I just do the best job I can for shareholders and if shareholders don't like what I do, the best thing to do is just for them to move on," McCrae recently told the Gold Coast Business News.
SPEAKING OF ...
The chairman of the National Broadband Network Company, Harrison Young, has picked the least topical subject to give a speech on before Saturday's election: the riveting issue of financial regulation in Britain.
The US-born Young, who is also a Commonwealth Bank director, has a reasonable chance of losing one of his board seats after the election, and seems to think it is too touchy to talk about fast internet connections. His original talk to the Australia British Chamber of Commerce lunch in Melbourne today was titled: "NBNCo: Connecting Australia?" It is now: "UK Financial Regulation: the Return of Judgment."
BOSOM BUDDIES
The former Ten Network director and Equitilink co-founder Laurence Freedman has found a new twin. After a three-year break, Freedman trumpeted his return as a director of a public company yesterday by joining the boards of two mineral explorers he has sizeable stakes in: Carrick Gold and Condor Nickel.
Freedman's appointment comes after the executive chairman of Carrick and Condor, Frank Carr, died in June.
Freedman said he initially had no interest in becoming a director of the companies. Until he recently dined with Carrick's and Condor's new chairman, Ian Burston.
"We just hit it off from day one. You bond or you don't bond," Freedman said. "You can sit around a boardroom table with someone for 10 years and you wouldn't necessarily bond. We sort of looked at each other and said, 'Mmmm, I'd like to be involved more.' "
Freedman said that the former Portman managing director is "a super guy" and "a lion of the industry".
His former business twin was his co-founder of Equitilink, Brian Sherman. They both made a squillion when they sold the
funds management business to Aberdeen Asset Management nearly a decade ago.
BE NOT AFRAID
The former Commonwealth Bank boss David Murray says "the rest of the world looks very smelly". The Future Fund chairman has also provided a comment befitting a bank boss. "It should be scary not for the bankers. It should be scary for the customers and the economy," he told the Perrett Report on the Sky network about the mooted banking super profits tax.
LOWY HIGH
The managing director of Westfield Group, Peter Lowy, welcomed some of the tough questions thrown his way in a phone hook-up with analysts yesterday.
"Hello, gentlemen. My questions have actually already been answered so you can move on to the next one," probed Matt Nacard of Macquarie. Lowy responded: "That's the best question we've had all day."
SWEET SUCCESS
CSL seems to stand for Cashed-up Sugardaddies Limited. The company managed to produce enough plasma last year to award
its managing director, Brian McNamee, an incy-wincy $9043 lift in pay to $6.08 million. McNamee's $2.2 million base wage was topped up with a $1.26 million cash bonus and $1.8 million of performance rights and options. He also exercised $8.45 million of performance rights during the financial year. He still holds 835,669 CSL shares worth $26.7 million.
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Frequently Asked Questions about this Article…
Why did Cudeco's share price plunge after its recent JORC update?
Cudeco released a long‑awaited Joint Ore Resource Committee (JORC) update that fell well short of market expectations. The weaker-than-expected resource update triggered a sharp market reaction, with the company's share price plunging about 49%.
What is a JORC update and why should copper explorer investors care?
A JORC update (Joint Ore Resource Committee update) reports a miner's assessed ore resources. For copper explorers like Cudeco, an updated resource estimate directly affects market expectations, project valuation and the share price — which is why investors pay close attention to these updates.
How did Cudeco's chairman Wayne McCrae react to the market response?
Wayne McCrae showed a robust public response: after the disappointing JORC update and the 49% share fall, he told shareholders he’d 'do the best job I can' and that he 'couldn't give a cold pie' what people think of him — indicating he was unfazed by criticism.
What director changes happened at Carrick Gold and Condor Nickel that investors should note?
Laurence Freedman, a former Ten Network director and Equitilink co‑founder with sizeable stakes in both companies, joined the boards of Carrick Gold and Condor Nickel. His appointment follows the death of executive chairman Frank Carr and came after Freedman formed a rapport with new chairman Ian Burston.
What did Future Fund chair David Murray say about a proposed banking 'super profits' tax?
David Murray warned that the rest of the world 'looks very smelly' and said the idea of a banking super profits tax 'should be scary not for the bankers. It should be scary for the customers and the economy.' His comment highlights potential wider economic concerns investors might consider.
Were there any notable comments from Westfield management that matter to investors?
Westfield Group managing director Peter Lowy was engaging with analysts and welcomed tough questions. In a phone briefing he responded confidently to an analyst’s query, suggesting management was prepared to discuss the business with investors and market watchers.
What does the article report about CSL executive pay and what might investors take from it?
CSL's managing director Brian McNamee received a modest pay rise of $9,043 to $6.08 million, including a $2.2 million base, $1.26 million cash bonus and $1.8 million in performance rights and options; he also exercised $8.45 million of performance rights and still holds 835,669 CSL shares (valued at about $26.7 million). Investors may want to note both the level and the structure of executive pay and the extent of share ownership when assessing alignment with shareholder interests.
How can readers send investment tips or contact the author mentioned in the article?
The article suggests using the publication's online tips box or emailing the reporter at srochfort@smh.com.au to send tips or information.
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