all coal is OUT OF FAVOUR. thats the commodity boom-bust.look at...

all coal is OUT OF FAVOUR. thats the commodity boom-bust.

look at peers! WHC hammered. Tinkler wanted this for mid $5!! Even the producing ones have been obliterated.

Global oversupply (that was driven by high coal prices)and slow down in demand from China (growth slowing - credit bubble major risks) and turn to cleaner methods has lead to rapid decrease in demand for coal.

Patience - why sell at bottom of cycle?

We have:
1. good quality coal - even in Mongolia
2. Good mix (coking PCi and thermal low ash)
3. excellent location (Mongolia - close to border)
4. low costs
5. Future potential (large tennanment area)
6. Mngt with large vested interest (chairmen et al - skin is IN THE GAME)
7. approval to mine - just waiting on TRUCKING Permit only (still think rail should b considered)
8. should be profitable at current levels
9. 5MT possibel from get go.

At these (and lower fcast) coal prices, should turn off new supply and delay existing brownfield. Thats a positive to stem downward coal price.

Coal will always be needed, and at lower prices, will prove very attractive vs substitutes!

Hold. be patient.