Investors sucked into this opaque scheme with blind faith in the PJ God.
I recall PJ being able to answer my most basic questions about the tiny margins I gleaned from the current only producer, namely, Xxaro. Never trust God.
The coal recovery after extracting the shale content is around 27%. So much for the billions of tonnes of coal.
The margins, currently, based on FSE, are $11 a tonne. Capex is a whopping $800M.
There is currently no power station RES can supply coal to. So much for the ready market.
Share price tells the story.
RES is a very long term and highly speculative story.
Fallen from a high of $4+ to 40 cents.
This is on the basis of its same project, which is progressing according to plan.
It is not like a company that failed to deliver. It is delivering and the quality of the product it is delivering is indicated by the share price.
