Downside in this announcement is clear; haven’t sold any coal yet!
On the upside though, a number of positives are in the announcement:
Pit 3 is starting to look like a proper mine. Once the two exposed areas are joined by the removal of the overburden, there will be a significant area of coal to work. Roads around the pit also look to be well established.
2 round trips to Batu Tuhup by the barges means there should be enough coal at Batu Tuhup for a full load to be sold. Just a matter of when they can get the buyer and a barge sorted!
They have more barges lined up to be purchased be speed up the barging from Krajan to Batu Tuhup. Whilst it’s debatable whether this is the best se of resources, it should result in more coal getting to Batu Tuhup for sale.
I still am keen to see the Mohing access road completion as this imo will be the cheapest and fastest way to ramp up coal delivery to Batu Tuhup. Of course arranging logistics and sales will be the next big hurdle so fingers crossed that they are further down that road in terms of making the arrangements than they are reporting.
CKA Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
