re: Ann: 500% JORC Resource Upgrade at Rockwo...
David,
The company has had 6 drilling rigs employed over the drilling period, that's definitely going to chew up some serious cash.
As a comparison, Carabella (another Bowen Basin coal explorer), a company which I do like, has a MCap of $180 million and had 3 rigs, with a 4th rig soon to be added over a similar drilling period.
Endocoal has been drilling very aggressively and it is sure to require alot of expenditure. The Quarterly will reveal the current cashflow situation, however I believe there should still be alot left in the kitty.
I'm not at all worried about potential capital raisings with EOC. As long as Endocoal aren't wasting money then I'm more than happy to cough up some further dilution to a company I hold stock in, in order for them to achieve a much more valuable resource base + mine development activities (negotiating rail + port access, Bankable Feasibility Studies, mine development plans etc.)
It's these kind of financially intensive activities which add value to coal explorers.
EOC Price at posting:
37.5¢ Sentiment: Hold Disclosure: Held
