coal announcement today, page-27

If a prudent investor is given the opportunity to buy shares, at a significant discount to market, in a somewhat risky share it makes sense to stag the majority of the shares and leave the others as free carry.

In the case of CCC you could sell the shares at, or slightly above, the issue price. This would leave the investor with no downside risk at all and a large upside potential.

What we need to see as shareholders is profitable production. This placement is designed to increase the profit. If CCC is not cashflow positive by the end of Q1 2010, then we have problems.

Will we be producing coal by the end of this month? Probably, but not in commercial quantity, it will more likely be done simply so management can spin it out as successfully meeting an advertised target.

The share price will not take off until profitable commercial production is a demonstrable fact. At that stage a large part of the risk is removed and the share can be priced on fundamentals. Fundamental analysis has been undertaken but is now out of date because of the dilution caused by recent and proposed placements.