Shares of CD International Enterprises Inc(OTCMKTS:CDII) are up an incredible 3600% today after news broke that the company’s subsidiary Capital Resources Management Corporation has just signed a contract to supply 240,000 tons of copper concentrate to a buyer over a period of 24 months. The contract calls for 10,000 tons per month for the life of the agreement, and would be worth an approximate $350 million according to the company. Delivery is expected to start in 2016 and the copper will be sourced from Peru and Chile.
Dr. James Wang, Chairman and CEO of CD International commented on the agreement: “We are very excited with this purchase order. We have delivered copper concentrate from Chile and Bolivia to China in the past several years. In order to fulfill a niche market and facilitate smooth transactions, we have been working very hard in the past several years to strategically place ourselves between our suppliers in South America and our buyers in China. We believe a successful completion of this transaction will fundamentally change our company’s future for years to come.”
The stock opened the day trading at just $0.003, and at approximately 1 p.m. ET traded at a high of $0.07. The current market cap of CD International Enterprises Inc is $4.15 million, with 85.61 million shares currently outstanding according to Google. This would mean that the outstanding shares have traded more than 3 times a piece today alone, which certainly brings up some caution on our part. If this contract is legit, shares are greatly undervalued here, but until we see proof and a filing to indicate that this contract actually was signed, we urge caution.
We find it a bit discouraging that Dr. Wang has not named the other party in this deal, as of yet. It will be very interesting to follow trading of this stock over the next few days and see if any filings are released by the company.
CD International Enterprises, Inc. is in the business of sourcing and distributing industrial products in Asia and the Americas. The Company also is said to provide business and management consulting services to public and private American and Chinese firms. It currently operates through two segments: Mineral Trading segment and consulting segment. The Mineral Trading segment sources, finances, manage logistics and sells industrial commodities from North and South America for the distribution in China.