Australian Mining Investments and CuDeco: Share Price

Submitted by Craig Strzelecki on 9 August, 2006 - 23:01

Shareholders in Australian Mining Investments (AUM) last week approved a name change to CuDeco (CDU)

Shareholders in Australian Mining Investments (AUM) last week approved a name change to CuDeco (CDU). At one point, the share price in AUM rose 2200 percent, at which point the shares were taken off market and suspended for a while. Class action specialists are looking into the wheelings and dealing's of Wayne McCrae's CuDeco as the company has been forced to admit it seriously overstated the size of its Rocklands copper discovery in outback Queensland. CuDeco admitted 34 million tonnes of its claimed 59 million tonne inferred resource at Rocklands should have been classified as "target" mineralisation. More than $340 million was wiped from the company's market value upon resuming trading, plunging $3.55, or 50 per cent, from $7.11 to $3.56, with $7.11 being the last sale price ahead of the ASX's suspension on July 5. The shares briefly touched $10 on that date, valuing the company at close to $1 billion - a level reached after Rocklands was heavily promoted as a major discovery by the company, its associates and sections of the print media. The exchange suspended the stock while an independent expert it appointed vetted the company's announcements on Rocklands to ensure they complied with the strict listing requirements for the reporting of mineral discoveries.

CuDeco Limited is listed on the Australian Stock Exchange (ASX) under stock code CDU. The company is principally involved in mining and mining investments. The company specialises in production of high quality, high purity copper sulphate pentahydrate. CDU was listed on the ASX on 2 August, 1971. Wayne McCrae is the Chairman of the mining company. View their investor website. Check your charts!