It has been a grim 2 years for wollongong coal, formally NRE
There has been serious financial mismanagement under the old regime. These people are now gone.
The business is being very tightly controlled by Jindal Steel, who are world class players. They have made significant financial investment into WLC, as it in their best interests to have a supply of high grade coking coal.
There was a lot of hype around the Russell Vale Longwall expansion, which was held back because of due diligence issues, in mining under the cataract dam.
This situation has now been resolved, and approval will come within 2 months. The guys on the ground call this the promised land.
In the meantime, there is approval to mine about 320k high grade coal immediately, which will ally short term cash flow problems.
Once the Longwall expansion is approved, this will generate approximately 1.2m tonnes / year. This is all high grade coking coal.
As a departure to previous methods, WLC are constructing a watery. Previously shipments were run of mine, which included rock, sediment and high ash. From the onset of the Longwall approval - the washery will be in action.
Once the process of the long wall and washery running, given the backing of a major multinational, the MC of 137m will be a tiny for a potential 2-3b MC
I have been watching this stock for a number of years.
I have no association with Wollongong Coal, whatsoever.
Expect a significant ANN soon
Expand
