I spoke to Rob Neil (CEO of CXY) today and I have attached a...

I spoke to Rob Neil (CEO of CXY) today and I have attached a summary of his comments for you all to read through;


· We have aligned with investor appetite on our coal story and that’s how we were able to raise funds on this round of capital raising.

· UCG has had a fair run over the years and all I am doing is securing the company’s future by looking at other value drivers in the company and leveraging off those.

· Today based on market sentiment the potential key value drivers are our coal assets and in particular our Mackenzie PCI coal tenement in the Bowen Basin of Queensland.

· We are very lucky in a sense that we now have various value levers in the company – which allows us to align with market sentiment and investor appetite depending on where the interest sits at any one point in time.

· Raising funds for a pure UCG play is difficult right now and based on a sound fundamental turnaround strategy we have secured funding to allow us to validate our Mackenzie coal asset with a drilling programmed for a maiden JORC report – this will drive value in the company and a potential re-rate in the stock.

· Once Mackenzie is validated with a JORC report it opens the company up to new investors who are waiting on that validation and are looking to take a position in the Mackenzie project – this is how you stop the dilution and raise funds into the project – but there are hurdles we need to jump first before the “big funds” get involved with us.

· It’s been years since we have any institutional investor support – they believe in a number of things: (1) Our coal story, (2) We are undervalued, (3) We represent a great buying opportunity and (4) I have a track record of company turnarounds. So they are betting we have the right ingredients to deliver value on their investment. That also means our long term shareholders come along for the ride and hopefully buy some more stock at the undervalued price.

· I am leveraging off this renewed interest in the stock to ensure we deliver on the milestones and secure the continued support of both our new shareholders and existing shareholders.

· The turnaround journey has commenced and it can’t be adhoc, that’s why its planned and measured and we are focussed on getting this company back on track to deliver real shareholder value over the next 12 months.


The future looks bright IMHO!

KEEP UP THE GOOD WORK ROB!