on a rope, page-3

Hi banron, it's Saturday and I'm enjoying a coffee so here's my 2 cent speculation, some of which I've stated before.

UCG has certainly hit some hurdles over the years. I don't blame you for being fed up, I certainly would be if in your boat. But at least UCG wise generally there is now light at the end of the tunnel, albeit not as bright as we would like, but IMO (for my money) UCG is getting quite close. I think it's more a matter of UCG finally getting a Commercial start and being able to produce a comprehensive costing analysis and EIS.

I tend to think that another particular company (which I hold shares) may be first cab off the rank for that. I don't really care who is first, just that it cracks the UCG Dam and the UCG world wide flood begins.

As far as I see it for CXY, is that they appear to be concentrating mainly in Indonesia for their advancement at this time, with a HOA with Medco. Medco have the money and resources to advance such a project should the go ahead be given.

As you'd know, in the mean time CXY is progressing with the maiden JORC for MacKenzie. Which gives CXY direction in the shorter term and potential SP rise.

As for the Court case, for myself, I've always considered the Arbitration process doomed to failure as there are considerable monies involved. However one must still go through the processes required. I've always thought even if the contentious points could be resolved, I would have been pleasantly surprised if the compensation point could reach the same. Not an impossibility, just low on probability IMO.

Hopefully on the 2 May we should have better indication of where this is heading. Aside from a suitable settlement, my best case scenario is that a full hearing date is set in the near future. I would not only like to hear a judgement in CXY's favour, but a public clearing of it's name and suitable compensation awarded. Either way, IMO we are getting towards the final leg of this race which will hopefully be concluded sometime in 2013.

My speculation for on back of envelope figures at present (for tangible Thermal and PCI coal assets), I consider that CXY may be worth 5-6 cents per share. Fire sale wise, around 2-3 cents. The Maiden JORC may improve that. The QLD Gov. and JV rail extension for infrastructure for the Surat Basin may also be a value add. What the UCG licencing is worth I have no idea. Would someone offer a small amount for takeover to gain that if worse came to worse? (would it even be applicable) Again, no idea. But I really don't think we're anywhere near that. As an amateur it's just something I keep at the back of my mind when I'm judging a high risk high reward probabilities when comparing a SP purchase. Others may have differing opinions on that.

Whilst after many setbacks, CXY appears to still be moving forward, which bodes well for their tenacity. Hopefully this year will supply us all with a good start in the reversal of CXY's fortunes. That's what I put my money on anyway, I like the odds of it doing so.

Things I'm looking forward to in 2013 :-

1. Mackenzie JORC
2. Final Court Hearing date and good result.
3. New Qld Gov. UCG Policy.
4. JV investment for Thermal and PCI Coal tenements.
5. My wife going the rest of the year without 'nagging' about something or other.

No scratch that last, we don't want to ask for the impossible. ;-)