Backontrack. You've always been a supporter and iam not quite sure what's turned you off now.
We always knew it was only going to be a 'starter kit' for 2mpta hindered solely by the fact they can't truck any more coal straight through the town of derby.
The capex is minimal for this sort of operation compared with ALL other thermal coal projects. Hancock, waratah etc etc. Rey has the advantage of being able to use a small capex starter kit to get the project going.
If this wasn't feasible, where would REy need the normal 1.5B+ initial capex to get hte project off the ground. They couldn't and hte project would go nowhere.
This will prove that REY can get it's coal to market for SUBSTANTIALLY less than the eastern states., (think 600km by rail then 1/3 longer shipping time). When things get happening Rey will have the lowest cost per tonne of any aussie thermal coal miner.
The management have given us an honest and realistic project plan that doesn't have enough dressing up and b*llshit to get the usual hotcopper speculator excited.
As a side note, gloucester coal shipped 400k tonnes last quarter equating to roughly 1.6m tonnes a year. MCC are offering the $700m for this. OPEN YOUR EYES!! 2mpta for 100m is an absolute bargain.
companies are being started based purely on peoples confidence on REY being able to make a huge project in the Canning basin. See TPLs presentation where all confidence you could possibly have in deciding to invest in it is based on REYs results. (keep in mind Reys pegged the best ground already)http://199.236.112.189/Shell/Media/ASX/Markppt.pdf
Patience will prevail. It always does.
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