'Credit to IMME on the ESI thread(apologies boys will stand in the corner with the dunces hat on) http://timesofindia.indiatimes.com/business/india-business/Power-projects-may-get-customs-waiver-on-coal/articleshow/11893712.cms'
ESI have proven and probable coal reserves of 0.0 tonnes. in fact they don't have so much as a tenement application in their name. on that basis ESI's chances of going into the coal export to India business are zero aren't they?
what ESI do have is 15 year old brown coal upgrade IP that nobody has ever bought despite multiple attempts to 'licence' it on multiple continents. the coldry IP is even currently subject to challenge in patent court - so they may not even have that.
anyone who has followed the two stocks for long enough knows that ESI is a P&D and convertible note show, and has been for the 6 years it has been on the asx in its current form.
a lowering of import costs into India is however great news for MNM given we have probable brown coal reserves of around 5 billion tonnes in 1000 sq km of tenements at BM and LV, and black coal reserves of upwards of a billion tonnes at Mt M and Texas.
MNM also have a series of contracts in place to facilitate BCE exports to Tata Power in JV with exergen as early as 2014.
which brown coal company is a small cap fund more likely to invest in do you think?
MNM Price at posting:
14.9¢ Sentiment: Buy Disclosure: Held
