The start of production at Kanagala has been taking a while..
More investors will enter once production starts; and then more will enter once cash flow comes in... There is not much value for the assets in the share price yet..
It has been a bit frustrating with the target date for Kangala being moved back numerous times [near term producer]... as suggested in a broker report an enhanced bfs and negotiations with neighbours and eskom will make the project more profitable and lower the capex costs.
Reading back it looks as though Kangala may recieve an upgrade this quarter.
"Universal completed drilling on areas adjacent to the planned Kangala open pit to bring 69 Mt of Inferred resources to a Measured category for inclusion into the next phase of mine development at Kangala. Forty two holes totalling 2,461 metres were completed during the quarter. Analyses and the resource update are outstanding and expected to be finalised during the March 2012 quarter
In addition, Universal Coal is engaged in discussions with third parties in the vicinity of the Kangala Project which could lead to an upward revision of the potential returns identified by the current AMEC-Minproc study. As a result, the initial mining and opening up of a box cut and proposed sale of Run-Of-Mine (ROM) coal has been delayed subject to the outcome of these ongoing discussion and related optimisation of the draft feasibility study. The Company expects to finalise these discussions as part of the optimization study." http://www.universalcoal.com/im/press/2011/quarterly-activities-report-sep-2011.pdf
UNV Price at posting:
19.5¢ Sentiment: None Disclosure: Held
