CCH.TO

CBLRF.OB

http://www.campbellanalysis.com

Weekly chart:

http://stockcharts.com/h-sc/ui?s=CCH.TO&p=W&yr=3&mn=0&dy=0&id=p89746929767

(This chart is for the Canadian symbol.  The United States symbol is CBLRF)

Note the powerful uptrend in the accumulation indicator (Accum/Dist)

TinyURL link to the same weekly chart (If the long link doesn’t work for you):

http://tinyurl.com/2eha5m

Our Key Points (opinions):

1) We Campbell is being “downplayed” by Management while Institutions and Insiders accumulate.  Numerous examples on our website – read the “Chronicles of the Downplay”.  Management has been reluctant to promote their company while this accumulation is taking place

2) Insiders may be enabling/cooperating with a plan for Nuinsco Resources to buy Campbell. Nuinsco (NWI.TO) now owns about 25% of CCH, fully diluted (see early warning report in Sedar.com).  There may be an even bigger plan in the works that we don’t know about. 

3) The Copper Rand mine

On-going production costs at the Copper Rand copper/gold mine (now producing) should be about:

- $1.25 USD per pound copper
- Gold byproduct will be “free” (its byproduct)
- Early 2004 slide show showed production projections of 50,000 ounces gold per year and 18 million pounds copper (just that one mine).   Numerous press articles in the 2002 to 2004 timeframe substantiate this 50,000 ounces gold per year figure (Copper Rand alone).  Many of these articles are listed n the website home page.

http://www.campbellanalysis.com/files/Campbell Investor Slideshow (Powerpoint file).ppt

Note the cash flow projections made for the Copper Rand mine in 2004.  The 2004 projections assumed a copper selling price of around $1.00 per pound (see slide #18), and a gold selling price of around $400.  At today’s metal prices, we should see cash flow increase of 5x – 10x over these models.  But the company has recently produced losses, with insufficient explanation.

- Even the 2006 Prospectus (downplayed) shows around 26,000 ounces gold production per year (from just Copper Rand, just that one mine).  The Campbell Prospectus is in Sedar, filed around September 2006.  A copy is available here:

http://www.campbellanalysis.com/files/GeologistReports/

Message board post: 

Last two quarters in 2005 --- Very important to analyze

http://www1.investorvillage.com/smbd.asp?mb=9985&mn=1882&pt=msg&mid=2829385

Just 2 years ago, the Copper Rand mine was starting production, and was able to generate around 80% cash flow margins, when the copper price was under $2 and the gold price was much lower.   It is simply outrageous (in our opinion) for the company to be producing the quarterly losses they have recently produced, and we are highly suspicious of the situation.  (Each quarterly loss has been followed by a small share dilution).

4) Corner Bay Mine

Campbell is now starting production from the “Corner Bay" mine.  I estimate that ongoing production costs will be around $0.75 per pound copper, simply because of the shallow depths and high grades.  Grades are 5% - 7% copper for the whole deposit (250 million lbs of copper resource). 

Corner Bay and Copper Rand are 43-101 compliant.  Corner Bay has a resource, while Copper Rand has both a resources and reserves.  But Copper Rand is 43-101 complaint, I believe.  Both mines have Geologist Technical Reports in Sedar, filed around September 2006, and available in the website.

Message board post: 

My estimate of Corner Bay production costs (under $0.75 per pound copper)

http://www1.investorvillage.com/smbd.asp?mb=9985&mn=1891&pt=msg&mid=2837036

5) They are now producing from Merrill Island, a smaller open pit copper mine.  Analysis and comment on Merrill are available on the Investor Village message board (the “Serious Board”).

That’s 3 mines in production by end of 2007, and they have other projects after that.  Campbell also have between 5 and 9 royalties (future income), depending on how you count

We are estimating a forward PE ration of just 1 or 2, based on our expectations for 2008 earnings.  We think Campbell can earn $80 million per year at full production (3 mines producing). More projects *like Cedar Bay) will come online after that.  Total shares outstanding (fully diluted) is about 600 million.

http://www.campbellanalysis.com