Two things have held them back the GFC as coal is traded in US dollars and production. When Gujarat took over the NRE #1 colliery it was in a run down state, the machinery was old and the methods of mining the coal out were slow in comparison to long wall. The belt systems to carry the coal out were limited, lots of issues with falls on the belts and break downs with equipment. This is what they inherited with buying the mine, but, this was the mining that had to take place while the future of the mine was developed. They now have opened up a new area to mine for longwall production, there are new machines, new miners new belt systems the works. It has cost money. but it is setting up for an exiting future. The SP? well punters want to see the runs on the board, they want to see production. It WILL happen and those who get in at this price will not be dissapointed IMO.
GNM Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
