Drawing parallels to pdy... Cpl has funding by eig for most of...

Drawing parallels to pdy...

Cpl has funding by eig for most of the requirement .. Are we hanging on to an ideal?

Positives:
1. Hinton needs the project to go ahead to resurrect a town that is losing residents with little prospect of economic revival.
2. It is a good asset, a good blending coal
3. Costs of production are quite reasonable
4. Eig a major fund must believe in the quality of the project as it has released funds - an must be satisfied as you would assume they have done a stack of research.
5. Eig must still believe in long term thermal coal price recovery - otherwise they wouldn't have allowed the first and subsequent drawdown.
6. Eig must be constantly undertaking due diligence in the approval process - and they have a board observer etc..
7. I am sure that eig would have considered the balance of funding - eg why front up the cash with the risk of not securing the final 25%
8. Gas prices are 4.7$+ bpu and likely to hit $6... Switching coal to gas happened when gas fell to 2.75$.. When the f will the switch back to coal happen.

Negatives:
1. crap coal price killing current sentiment, no upswing in sight.
2. Approval processes taking longer (though not out of the ordinary).
3. Company promised full funding solution over a year ago and hasn't happened.
4. Promise of approval, construction start etc by management - hurting the company by not hitting milestones promised.
5. Cash burn (I suppose some of this burn is part of the project budget)
6. Poor promotion of company- no support for stock.

Each major step down in SP I have had to consider with my advisors getting out and moving to the next investment - like so many I keep pointing to the positives and downplay the negatives...

Right now i am considering letting the stock go - but just can't bring myself to do it because I still believe a small trending increase in thermal coal prices things will improve... The sp can't support any more bad news, the company needs some luck over the next few months...

Yes eig can walk away despite the draw downs...yes approvals can take much longer

I just hope with the performance rights in the notice -!management have something up their sleeve..

Excuse the spelling and grammar - typing this much on an iphone is a killer..

Good luck to all..