Franky1. You ask whether the company will be forced to go...

Franky

1. You ask whether the company will be forced to go overseas. The company has already gone overseas. Its got a project underway in Chile, and it has vast coal resources in the US and Turkey which it is actively developing.

3. You ask about the prospects of the decision by DERM. If you are referring to the approval required to begin generating electricity from syngas, it is just a few weeks away. If you are referring to the prospects of longer-term expansion beyond the trial at Bloodwood Creek, this is uncertain. The Independent Scientific Panel has already offered LNC and CNX qualified support. My guess (and its only that) is that provided that the trial goes as planned from here, it will be difficult for the government to do anything other than approve an extension of the trial for a further 25MW without its motives appearing baldly political.

4. Of course, the above distracts from the essential point. Its far from clear that Queensland is even the company's first preference for the next plant. From this point, a scaled-up commercial operation could probably be delivered just as quickly in Wyoming as in Queensland. That is why Incitec Pivot has exclusive international rights to CNX technology for fertilizer. Your concern about DERM (as a relatively uninformed invester) probably tells us a great deal about why the SP has been so weak of late. There is a corrosive misperception that Queensland is somehow critical to the company's growth prospects. Don't discount a correction as the broader market clues into the activity in other countries. This may occur in the second half of 2011 as north/south American operations move forward.

5. Don't quit your day job just yet. CNX is a potential 10-bagger, but it won't happen overnight. It's still trading well below its average range of recent years, but there are several major milestones over coming months. It's difficult to believe that the SP can remain sluggish for too much longer provided the company continues to deliver on its strategy for the remainder of the year.

Hope this helps.