bright future

New here and not seeing alot of chatter on Hunnu Coal, so i thought i would throw my two cents in from the research i have done.

Gem of a stock with a good LT future IMHO. Has stabilised recently at 85cents - 90 cents. Good time to accumulate IMO (or pick some up before key announcement dates). the stock trades well on any positive sentiment.

- Very early production opportunities from their 2 lead projects in Mongolia where the regulatory and fiscal regimes are quite supportive.

- I also personally see other advantages in holding this stock LT. Australian mines are getting deeper and older. Like gold the easy, cheap coal is not there anymore. Coal in mongolia is for the most part open-cut from the surface...hence cheaper cost to produce. This offests the fact that the coal is not as high in grade as ours.


- The govt is also trying to get some rail projects off the ground which will help HUN and other juniors in Mongolia. The Tavan Tolgoi open cut mine in Mongolia is one of the oldest operating since 1967 and containing estimated 5 billion tonnes in reserves. The problem it has is that it's about 400km from the nearest rail network (it's in the desert basically). The govt wants to build a rail network to link Tavan via rail to the north of the country and also they want to link it to the Trans Siberian railway (the Russians would invest....for a return ofcourse). The idea here is to rail it to Vladivostok (a shipping hub). So it's not just all about Chinese customers....it is a very short boat ride to Japan and other customers from the port. This would make Mongolia a big threat competition wise to Australian coal as the production costs and shipping costs to some of our major customers is much less. They would be able to offer the coal (albeit it is a lower grade than ours) at much cheaper prices per tonne.


Obviously this is a LT deal. Think 5-8 years. HUN's interests are near the Tavan mine, therefore it would have access to infrastructure in the future if this were to occur as planned. It also makes HUN an obvious takeover for big established players in the region (think Ivanhoe and RIO's interests in the region).

The stock IMO can trade to $1.50 on positive sentiment alone. Long-term provided it meets goals it could be a major success story. Ofcourse this is an opinion....so do your own reserach aswell.