spot on !!!! yet another bit of marketing/presentation and spruking with no announcement of a definitive plan on funding.. A wishy washy statement on progress at best.
What is really frustrating is that the perception of CPL's finances don't reflect what is actually going on. In actual fact the company is in a solid position- it is all the promising / missing deadlines etc that is killing the SP.
FACTS: -Civils are starting, -Site Mobilisation has already started -detailed engineering drawings have been finalised, -equipment selected, -key staff to run the project / construction are in the midst of being appointed. -site support in train- IT, Site Staff etc. -Accommodation has been sorted -Rail & port costs have been set and agreed (also no capex rail/port the biggest killer of these projects).' Approvals are forthcoming HP have sunk that much money in this project for it to be a disaster.
So what is the problem??? Right now CPL has made so much fuss on the importance of a JV partner so this is all the investment community is focused on.
To me, the less access to cash the better - they can scale back the level of "world class equipment/newest and best equipment to start off with"- we are coal miners- it is simple.
The company has enough funds to get through to the end of 2013- so why rush into a JV that isn't at the right terms. The problem is that CPL set the expectations so anything different and we get punished- yes by the short sellers and those that are fed up.
the company should just come out and say- "we don't need a JV partner right away". which is what they say in the presentation but without any conviction. Wishy Washy.
given this, i am sure the SP will recover by the time i finish my Ramblings.
Expect some more announcements over the next few weeks (hopefully no more bloody presentations)!!!!
Good Luck to all.
CPL Price at posting:
85.7¢ Sentiment: Buy Disclosure: Held
(20min delay)