Don't buy until at least after Mongolian winter is over unless...

Don't buy until at least after Mongolian winter is over unless you can afford the capital to sit idle. Just my opinion but i don't see it heading anywhere for at least the next 6 months unless someone (Russians, Noble, Banpu or Chinese) raid it. Also the political situation (like everywhere else) has taken on a more protectionist/natinalistic flavour.

Otherwise this is the second largest known high quality coking coal reserve in Mongolia with an estimated IRR of over 40%.

The issues are:

1. Even though the resource is large it's still less than what was indicated initially by management.

2. The resource is in the middle of nowhere. Billions in infrastructure spending needed to get it to market.

3. General headwinds in the coking coal market given reduced demand for steel in China and elsewhere.

4. Ambiguous sovereing risks. They were clearer only a few years ago with Mongolia being very pro mining and foreign investment.

On the plus side if a few things go right it will fly back into the 30-50 cent range pretty quickly imho, so it offers the potential to be a 5 bagger.

Iv'e got small bids in under 8 cents as i'm alredy in and want to reduce my cost base (15 cents atm).