bargain, page-4

dbrassp - The current shareprice has to be seen in the context of where it has been and where it has come from.

Remember that late last year they were having their Rights issue and trying to get a response by offering conversion at NZ$0.90. Even after their successful capital raising from that the share price in the early part of this year struggled to get up to around NZ$1.00.

As progress on the mine became more certain then it began to lift. Then we had negotiations over coal price going on and the sp began to lift up towards NZ$1.50.

In the last couple of months, but especially in this last month, as various things have fallen into place and the new levels of coal prices have been revealed then the sp has shot up to over NZ$2.00. In fact just over a week ago it hit the high of NZ$2.50.

Now perhaps the rise was too quick. Perhaps some holders have decided to sell at such a rapid gain in profit (especially if they got in at 90 cents.). And of course the NZX has dropped to a 3 year low point so even shares like NZOG have been pegged back from recent highs.

There has also been a bit of publicity about some drop in coal prices overseas. Now I am not sure that we are talking about the same type of coal but the mere talk and headlins have also had an impact. Even though PRC now has contracts to sell its coal at US$300 a tonne I believe for at least the next year ( or is it longer - need to check that)

So current price is still a very good price compared to early in the year. To pick up again it just need to have a more settled sharemarket and also get into the beginning of its production.