There has been the indication that PRC will be looking for at least another $20 million to see it through to a more productive phase next year.
So that is probably having a bit of an impact.
I suspect also that there are also some ripples affecting sentiment about PRC from the current concerns about how solid the global recovery is and the potential for things to fall apart again.
Therefore a collapse on the global scene would see the markets for PRC coal get hit a bit and perhaps a reduction both in demand and also in projected price.
There has also been a recent comment sheet put out by stockbroking firm Forsyth Barr in NZ which, while indicating that if all went smoothly then the future could be quite good for PRC but........ there are also a number of potential "pitfalls" (if you will pardon the expression) that have to be got through. In other words there is still risk. If progress is made and the possible risks of the "unexpected" is gradually removed then well and good.
So there is general global negative feeling about and that has combined with a certain level of uncertainty about how far PRC has got through its teething problems and discovering of the real nature of the coal seam / seams that it is dealing with (the underground geology)
Those are my thoughts and comments for they are worth there onyx. Probably worth a further dabble if you want to take the risk. Are you brave enough !???????
PRC Price at posting:
83.4¢ Sentiment: Hold Disclosure: Held
