buyers building

Few thoughts I will share as a now very biased new shareholder;

The company is very tightly held with 82.6% of all shares being held by the original recap group and 72.6% being held by the Top 20.

Aside from this being a quality mining project, the structure of the coal deal seems to focus heavily on avoiding shareholder dilution, which to me suggests the Top 20 have a long term hold strategy. Also the new Director appointment is excellent. If this is the case, then there will be little shares available for purchase for institutionals/public wanting to take a position.

Patersons circa $700k placement and the proposed share plan (which had a closing date prior to the announcement sadly) is clearly a spread mechanism for change of nature/scale - like Resource Generation (formerly Comdek). After reading the announcement on Tuesday I contacted two brokers to get an allocation for the placement but ther book was already full.

I have noticed that the buyside depth has been consistenlty building since the recent announcement. It is my hope and suspicion that the buyers will chew through the limited sell stock and we could see some dramatic movement.