I don't really expect anything a month or 2 from here, except the documentation for the rights issue which may contain more information on the assets, etc.
There was always going to be government risk and infrastructure risk being landlocked, and proper export operations were not possible until way out. However, they had created an impression a while ago that a 1 - 2mtpa operations was possible through Maputo, and that hasn't been mentioned since. Even if it failed, it should be mentioned instead of leaving it to silence. Instead I felt that the company tried to generate interest instead from the purchase of additional assets, which even though might be the right thing to do to take advantage of low coal prices, but still they should address what they had said before. If it's not possible, just say it is a work in progress, delays, etc. Now it is not possible to even guess when is the first positive cash flow going to come from. Even if they are successful in the bid, construction will take a few years, and there will be no inflows going to the company until such time.
AFR Price at posting:
8.0¢ Sentiment: Hold Disclosure: Held
