RES and the big 1 4, page-23

Hey Pinnell,

I had a similar conversation with PJ a few weeks back. He is such a great guy & very easy to talk to. He's always more than happy to discuss issues with shareholders.

What worries me the most is the very weak price of coal and the fact that China & India are making efforts to ramp up domestic production. Did anyone see the article about India stopping all coal imports within 2-3 years? Even if it's a wild idea, it's certainly not good for sentiment!

We all know how much (or little) RES will make from domestic sales in South Africa, so export is really our bread and butter. Whilst Stage 1 production is all but sold (0.5Mtpa still available), profit margins are very thin. RES will have large debt repayments over the first several years of production and after operating costs may actually run at a loss unless coal prices bounce back ... There just doesn't seem to be anything on the horizon to suggest coal will bounce???

Australia via Tony Abbott seems to be the only country left who thinks climate change is a scam! Maybe that's because our "growth & jobs agenda" rely so heavily on coal exports?