Apologies, that last line was meant to be deleted. UBS I think recently were badmouthing the company after helping to raise funds and recommend buying only in 2010. I guess they have the necessary justifications with the carbon tax, construction & Dev. delays and interest costs.
Frankly I think a very negative slant is being put on GNM. Practically every coal miner reports delays in production projects. Not really such a big deal. Yes there is going to be higher interest costs, carbon tax and lower production for 1-2 years. The current SP has more than fully discounted for all that.
There are a few other reasons for the low SP. With AKJ owning >60% of the company and GNM being joined at the hip to the parent co in India there is little chance for juicy takeover attempts, meaning disinterest from opportunistic strategic traders. Lack of interest from institutions as most of them are, in the current environment, desperate to nail down some dividends to shore up their results. If and when there is a whiff of dividends expect a lot more interest. I fully expect GNM to pay generous dividends once expanded production is bedded down, The reason? Gujarat Coking Coal, the parent company has a great record of generous dividend payments.
K&D66, pity you sold out today. I really think we are seeing the bottom now. I bought a few today.
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