DDzx - you need to DYOR. Revised capex is closer to 450m as per last ann with 60/40 split if I'm not mistaken. Also, comparisons between pre & post consolidation share prices are becoming tired! Consolidation was almost 2 years ago now!
In November 2007, CDS was in a trading halt at around 6.7cps when they first announced SA Coal Acquisition. The share price then traded between 12 - 18cps for months (pre Jury & Co.) In the days after announcing SARB approval and Resource Upgrade the share price peaked at .495cps (market conditions were drastically different then to now). Obviously this was sentiment based. True value at the time was still closer to 18cps and anyone with half a brain knew this!
In Aug 08 CDS raised $12M through placement at 18cps (not $1.80 as the antagonists insist). I understand the comparisons you make etc...but dismiss them based on the fact that RES/CDS is a completely different company post-consolidation. Different share structure, increased coal tonnage, land acquisition, Tassie acquisition, MRA submitted, Export COAL OFFTAKE signed, stronger management (remember Jury & Matthews were appointed 17th June 2008 and cap raising was done mid-August 2008) ... and these are only the things we know about! Imagine how far along domestic offtake discussions are, transport negotiations, funding etc!
Oh yeah...the SP never reached $4.95 either! Those comparisons are becoming ridiculous!
If you look a little deeper into RES and read between the lines, you'll quickly learn that Jury & Matthews have created an absolute world class project here with decades of mining life and the potential to create massive wealth to long term share holders.
In the meantime, allow me to complain about the shareprice!!!
RES Price at posting:
68.0¢ Sentiment: Buy Disclosure: Held
