CD International Enterprises Inc (OTCMKTS:CDII) witnessed a massive sell-off during Friday’s trading session plunging by 32% on heavy volumes, which were 2.5 times the daily turnover. The stock has witnessed two continuous days of sell-offs after it has been unable to move above the resistance zone at $0.700, which is being seen as a huge negative. CD International currently trades below all moving averages. The MACD oscillator is showing signs of an intermediate bearish reversal. The RSI indicator has given a fresh sell signal, which is a huge negative. Traders believe the stock could trend lower towards levels of $0.0070.
CD International Enterprises Inc (OTCMKTS:CDII) announced the receipt of a PO (purchase order) by its wholly owned subsidiary Capital Resources Management Corporation. As per the reports, the PO worth $350 million is for 240,000 tons of copper concentrate.
The duration of the purchase order is 24 months. As per the terms and conditions agreed upon by both the companies, CD International will look forward to sourcing a net quantity of 10,000 tons of copper concentrate every month for the coming 24 months. The total worth of $350 million was decided based on the spot price of the copper.
If everything goes as per plans, the delivery of the copper concentration will start early next year. The management of the company has already started planning the primary areas that are likely to be used for the sourcing. As of now, Peru and Chile are the two most voted areas where CD International will source the copper concentration.
Arranging finance for sourcing activities is going to be a difficult task for the management; therefore, CD International will use the LOC (letter of credit) that’s issued by the buyer. A portion of this LOC will be transferred to the suppliers to earn their confidence and execute all the necessary tasks well in time. There’s no need for additional financing to carry out this transaction.
All the senior management officials of the company are delighted to announce this transaction. They hope that it will help them in the long term. According to Dr. James Wang, Chief Executive Officer & Chairman, CD International, it’s a proud moment for the company. CD International has delivered copper concentration to China from areas like Bolivia and Chile in the past and has the confidence to do it again.
CD International has been preparing itself for such moments for a very long period. All the investors, shareholders and key account holders will be kept informed about the progress of this purchase order in the future.