Anyway as exciting as oppies are.... Here's some interesting food for thought:
Coal prices have continued to move on a steadily rising trend in the Chinese domestic market: "NDRC has also earmarked railroad wagons, with a combined transportation capacity of 834.6 million mt, for cross-provincial coal transportation in 2012, down from 932 million mt in 2011 and 906.5 million mt in 2010.
Medium and long-term coal supply contracts will be given priority while allocating the rail wagons.
Of the 834.6 million mt of railing capacity, 775.06 million mt will be for power coal in 2012, slightly up from 769 million mt in 2011; 28.74 million mt will be for coal used in the fertilizer sector, down from 34.84 million mt in 2011; and 30.80 million mt will be for household-use coal, down from 33.63 million mt in 2011." - China mining.org http://www.chinamining.org/News/2011-12-16/1323998436d52499.html
China's coking coal market still rises and I think will continue to rise this decade.
"China will continue to face coal shortages in 2012, amid strong local demand and limited coal transportation capacity, said Huang Qing, board secretary of China Shenhua Energy Co." - Huang was addressing the 2012 China Galaxy Securities Investment Strategy Seminar held in Sanya City of Hainan Province
Huang said; "Coal demand looks set to grow steadily in line with China's urbanization, industrial growth and its reliance on thermal power. China's urbanization rate grew from 19.4% in 1980 to 46.6% in 2010 and is expected to grow to about 51% by 2015." - Key figures in understanding the Demand at play here.
Key factors outlined by Huang from the UOB Kay Hian Report are; "China's coal imports to remain resilient in the first quarter of 2012, as coal traders have already started to inquire about coal shipments for Q1 2012.
Estimated China's annual coal imports would reach 200 million mt in 2012. China's annual coal imports may reach 300 million mt by 2015, growing at about 15% annually." - 2012 China Galaxy Securities Investment Strategy Seminar held in Sanya City of Hainan Province
China Shenhua Energy plans to acquire more coal reserves from Mongolia and Africa. Mongolia is a key strategic asset of China and gaining these licenses for ROB is a very large and outstanding investment in my opinion.
Excellent mineralization and licenses are only assets if the Demand and Capital support its exploration. In this case ROB is on to a winner here in my opinion and if they can successful position themselves with more licenses this is going to be a great year for the company!
Have a great XMAS everyone!
PS - DYOR! Knowledge is power, this research could all be wrong! DYOR!
Kind Regards
ROB Price at posting:
1.9¢ Sentiment: LT Buy Disclosure: Held
