As a very long standing holder of CXY shares, and before that...

As a very long standing holder of CXY shares, and before that PCE, I sense some analysis is required of the recent events today. The following is made from a straightforward point of view, i.e. has shareholder value been maximised, and if not, will it be?

There's one statement that needs to be made, and that is, that this company in all of its former guises has failed shareholders in one way or another. I say that without inferring any particular criticism of the intent of sucessive mangements down the age. The company has had various technologies, VRB and UCG in particular, that have appeared to possess very persuasive and potentially economically exciting goals. The fact is they haven't achieved.

In the case of UCG, thats not to say that it won't achieve. Indeed, I remain convinced it will, but that doesn't mean I blindly support the expending of thousands of shareholder dollars on its pursual.

Cougar Energy, Len's vehicle at the time, was bought by PCE in Aug 2006, 6.5 years ago. By the time Kingaroy was shut down in July 2010, it could be argued we were on the verge of a "technical" achievement but a questionable economic one, as the QLD Gov hadn't a policy on its commercial use. In other words, we had promise, but not an assured financial gain.

Other UCG projects were continuously announced, Pakistan May 2007 - nil happened so far; Victoria Brown Coal Sept 2007 - nil happened now dead; Essar (India) March 2008 - nil happened and now dead?; China/Mongolia Dec 2009 - nil so far; Indonesia - nil so far.

Clearly Kingaroys events have affected progress, but plain fact over six and a half years we haven't got a project earning revenue. This despite UCG having been already successful before Cougar Energy was bought by PCE, and supposedly therefore it being "easier and quicker" second time around. Source: ASIC docos from the period.

My investment in CXY, and pre-decessors, owes me over half a million dollars, for which I have seen no return. I supported UCG, and as mentioned above, still believe it will earn excellent returns. Yet I sense is hindsight that one of its problems is a simple human frailty. That is, that we understand (and usually trust) how and what happens when you "mine" something from a hole, whether open cast or underground tunnel. However we fail to trust something where the processing is carried out many tens of meters underground. In short, its too easy to "fear" UCG. CSG doesn't have that problem, as it is understood to be merely the removal of something, without the processing elements. Frankly I'm not sure I appreciated that until today when thinking about this post.

Len had a dream. A dream that got blown apart by Bond in his Linc days, and has now disappeared again in CXY. As a professional investor he will understand the sentiment I express here regarding a return on shareholdings. As a man, he will be bitter, angry and no doubt "fired-up" to achieve his dream. I sincerely wish you the best Len, and I hope to get an opportunity again to invest in your dream.

But today, as a simple shareholder, I sense that there may actually be a chance I could not only get my investment back, but make a few dollars as well. At that level, and bearing in mind its my super fund, I'm happy.

Sentiment changed from LTerm Buy to Buy.