I think the whole idea of the stages was to give them a minimal start (or version of a Demo production plant in reality if one wanted to look at it that way) prior to venturing on Stage 3. To meet that criteria they will need panels 3 and 4 finished and producing IMO. Stage 3 will require China State Bureaucratic approval for the commercial aspects and licenses. We have no model to go off concerning that in timelines, so the processes involved remain to be seen. However a operating 4 panel plant along with the A-Z of UCG and environmental impact along with decommissioning plans and even CO2 storage possibilities for cavern, may put us on a faster track with any luck. As I've said, China need energy, China has massive coal deposits, China has numerous deposits not suitable to mining but suitable to UCG.
I think CNX's business plan is smart for UCG in it's present stage of infancy. Up front costs are minimal and if the product doesn't succeed, we won't succeed. From my standpoint CNX is putting their tech where their mouth is and letting the results speak for themselves. I'd love to know what the prospective royalties percentage in the deal is.
I doubt Zhengzhou CIG went into this blind and did their due diligence and are aware of the prospective profits to be made. It's just that we now appear to have to be dealing with new management and possibly a company that is in the processes of major restructuring. Palming delays off for the employment of a new CEO was not unreasonable in any business book, neither is the employment of a PCM, the latest possibly being a saving face delay whilst they sort their own house out. However it is getting long in the tooth. This is all my speculation based on what limited info I could find, whether or not I'm on the right track also remains to be seen. I'm happy to read any other suppositions.
CNX Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
