I am extremely bullish on CLR and Coking Coal in particular but I think caution needs to be exercised until the coal quality analysis / washability results are made public this month or January. They are crucial to the project economics and company valuation. CLR have been adament for 1 year that they have a high quality coking coal resource (but I think that was based on minimal testing on 3 old drill results). Once known, valuing CLR becomes a whole lot more certain - begs the question does some parties have a heads up on the quality results???? - I hope not. I dont believe it is the role of management / directors to find a home for shares that a major shareholder wants to sell but I am astounded that 1) they didnt raise funds at $1.60 a few weeks earlier and 2) media reports that Helmsec are spinning a $800m - $1b Capex for the project need to be addressed by CLR. Surely that number is not correct or has been taken out of context (ie in anticipation of significant further tonnages being proven up). That I guess is our problem - directors are largely corporate bankers and so is our major shareholder. Vicious selling has occurred over the past few weeks but insto's were on the buy side soaking it up.
CLR Price at posting:
$1.15 Sentiment: Hold Disclosure: Held
