A thing about activism is that -- you have to be loud and noisy to make your voice hear to some company management. I have heard personally from a few people here who told me - it seems the management took my comments seriously and decided to act. Whatever the truth behind that, atleast the management has done what they should have done 18 months back -- lease barges, if they cant buy, instead of endlessly waiting for the customer to come with their barges and pick up coal.
Positive news flow (I bought some) -- but company no where close to out of the woods yet. Still lots of issues to resolve and cash flow bridge to solidify before things turn around. In 2-3 months, river runs dry for barges to come to Batu Tuhup.
2 barges running 2 loads a month = 15,000 tonnes a months. Do that over 3-4 months before barging stops = 50-60k tonnes of coal. At $40/t pre-tax margin (remember early coal costs will be very very high, inefficient coal transport, high OBR, inefficient barging, higher loading/unloading costs etct ect) = ~US$2 million in next cash inflow. Nice to have cash flow, but not nearly enough to complete the conveyor, road etc.
IF barging stops between June - November (which most likely it will) then the stock will continue to be around 10cents.
So back to saying -- good updates on getting the barges leased and first coal on its way out. Lots lots more to do.
CKA Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
