Some solid progress. Well done.A few points below for discussion...

Some solid progress. Well done.

A few points below for discussion that aren't in the Qtrly. There are negatives and positives below, as I think it is best we get a balanced and realistic picture.

1) while the studies are for 4mt, the chpp is only approved for 2.1 mt as far as i can see - does anyone else have any insight on this?
The resulting CHPP design can wash 2.1 million tonnes per annum (Mtpa) of ROM coal feed at a
baseline forecast of 6,000 operating hours per annum. Sedgman note that good maintenance and
operating practices could see the plant operate at more than 7,200 hours per annum treating 2.5 Mtpa
of raw coal with a minimum 20-year lifespan.

2) I have a fear that because the asset is land locked and China is the only buyer at this stage, they will get a discount as China likes screwing companies. So I had a quick look at a peer, Mongolian Mining Corporation
https://www.mmc.mn/public/storage/announcements/September2023/M27XT44cdO8KRrOFDXX2.pdf .
Their average selling price for the first half 23 was $161.8 a tonne for HCC. Over the same period the SGX coking coal (just using this as a bench) was a minimum of $196 and a max of $374. There was a similiar significant discount for the corresponding period in 22 So there is a significant discount this company is getting. I know Fat coal gets a premium to hcc. Does anyone know the discount is because of the quality of the coal or is it China screwing them on price as they are the only buyer? Does anyone have any comparison of what we should get compared to a published index?

3) Funding, here is an excerpt from a release after Mr T became a 51% shareholder. This is a massive positive.


4) if adjusted for inflation the road costs say $200m in capex and they get a Chinese developer to fund it at say 14% over 10 years (i picked 14% out of my hat and it could be more but it could also be a lot less), and they ship 2mt a month (CHPP approval max), then it would cost approx $18.60 usd a tonne to pay back. A lot better for shareholders then raising capex from the market. CGCC has already said that of the original road cost of $165m, up to 75% would/could be sourced from Chinese commercial banks.


I'd be keen for anyone's input on any of the above. Many thanks and GLTAH.