Thanks Roidz - I appreciate your input, and your experience, as well as the words of caution. I agree with your approach, regarding getting to know the people running the company. I have met the CEO, execs & managers of Conti Coal on a number of occasions, and they were (and continue to be) very forthright and open in answering the many questions I put to them. This association has continued via follow up contact via email & other discussions. They have continually impressed me with willingness to address concerns & explain thoroughly why they have undertaken such strategies & approaches to grow the business.
If you read through the asx announcements released in the last 8 months you will see how proactive, consistent and determined this company has been in achieving its goals. You can't fault their communications & PR efforts, anyway.
For those like me who have been in since the mid 5c range for heads & low 3c range for oppies, (since July 2010) the returns have been solid so far.
Don't discount the fact that they also have undisputed, genuine, true-blue, fair-dinkum world class off-take partners in EDF. EDF is the largest energy utility/trader in the world by market cap. This is the first time that EDF have invested directly into a SA coal company. I suspect that EDF have done their due diligence - enough to sign off on a 20 year offtake agreement with Conti Coal, at spot prices (and small marketing fee) plus offer a very attractive rolling credit financing deal to fund new projects.
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Roidz - can you share with us exactly what your "30 years in coal" involved or still involves? Have any of your mates worked in the SA coal sector? Forgive me if I'm prying to much, but so far you have taken a strong stand on your "30 year experience" in (Australian) coal.
Thanks,
M.
CCC Price at posting:
79.0¢ Sentiment: LT Buy Disclosure: Held
