socius and their modus operandi, page-15

Shock ! Horror ! Listed junior coal producer issues shares to raise finances.

No offence but I do think some of you guys need to have a proper think on why equity markets exist.

During the worst financial crisis in most people’s living memories, Continental Coal built a portfolio of assets and brought a $40M project to fruition. Well, we know how they did it and I suppose this forum was awash at the time with whizzy alternative ideas and invitations of cheap money from investors, was it ? Just like it is now on how to take forward their other projects…. I wish.

I’m tempted to talk about magic beans, money trees and geese of the golden egg laying variety but I’m scared some of you will take me seriously. What did shareholders here expect the company to do ?

Am I the only one that remembers watching the share prices of some of the worlds largest mining companies nose dive and saw shareholders and bond markets being tapped for literally Billions of $$$’s to bolster balance sheets bloated with debt ? The financial crisis wasn’t Conti managements fault, nor was the fall in coal prices and they could never have had access to the financial options that the larger companies had.

I can see that it’s been painful for long term holders here but they are far from alone and with Penumbra now ramping up production and other projects in advanced talks perhaps this is the start of a reversal of fortunes. I don’t ignore the ongoing risks and potential for set backs but the potential rewards are just as real in my opinion.