PRC 0.00% 61.0¢ pike river coal limited

"is this any good, market doesn't semm very impressed ."The...

  1. 8,066 Posts.
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    "is this any good, market doesn't semm very impressed ."
    The market may not be impressed but that does not equate to meaning that PRC is no good.

    Obviously the market has been hoping that progress in getting through the Graben problem would have been quicker and therefore that coal production would be able to be increased.

    The cutting through the Graben obstacle has proven more time consuming and so there is not the amount of coal coming out at this stage that would get PRC closer to making more money.

    In fact it looks as though things are a bit more behind than hoped at this stage.
    So the market does not like that. Delays mean longer to getting to cashflow.

    " comments here seem to indicate its a bit of a dog "
    Depends whose posts you are reading and how you interpret them.
    I hope I have not suggested that I view PRC as a dog. Far from it.
    There are teething difficulties to overcome. They are working in a difficult geological area which has posed challenges but they are getting there.
    "not sure what the comments re: financing mean. "
    Well, obviously, they originally had a plan to be fully operational by a certain date but there have been a number of problems that have delayed operations and therefore delayed any shipment of coal and therfore meant there has been no anticipated income.
    The cost of getting the operation going has continued with no cashflow to counter the costs. So therfore PRC will need to raise some further funds (which it should not have any difficulty doing) in order to fund its ongoing operations.
    Once it gets into full operation (probably about September-December quarter) then cashflow will pick up and it can then adress its debt situation as it moves to profitability.
    The big plus in PRC's favour is that coking coal prices are likely to rise substantailly for this finacial year ahead. And that will aid cashflow.

    It is not a dog. But there are still some risks that you have to be mindful of and accept.
 
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