Therefore buy SRL. Good company. Solid management. Used to own shares in it. Operations close to Asian markets.
They have cheap local labour in Indonesia. Some country risk. Plenty of good steaming coal there. Huge country with massive unexplored potential.
What is SXP's coal good for?
South Australia most likely to try to develop their hot rocks for electricity generation as the cleanest solution.
Best propects for SXP is finding oil/gas. Otherwise shareholders will need to wait another 10-20 plus years for possible conversion of its low grade coal into oil or whatever, if that is allowed on environmental grounds.
There are massive quantities of low grade coal in the world, especially USA and China. Russia is likely to have far more than all others, just does not have to keep looking as it has plently of gas and oil. Even Mongolia has plently of coal and is exporting it to China.
At present SXP has a lot of real estate.
SXP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
