asteroider the coal's issues lie not with transport and port access but in its high ash content (it needs washing). Tasmania has great infrastructure and there are three ports available to take the coal should it get to production stage. What Spitfire has to do is do a diamond drilling program to get a sample of cores from the Langloh project initially (most advanced resource), do the met work to see how much washing is needed to bring it to export standard and then they can talk to offtake parties. I dont think it is going to be a project killer at this stage as there is still a huge level of demand from asia for thermal coal to run power plants and Langloh looks like it would fit this bill well. The issues for me on the coal side are 1) metallurgical - probably solvable and 2) the coal price - in the lap of the gods at present and 3) funding - hopefully this will be available although at present it is a horrible market to do a financing into. I think the commodities are all violently oversold and there will be an equilibrium found in the next six months albeit at lower levels than people have experienced in the last few years. But Langloh should work at this A$ rate and current coal prices, assuming no bureaucratic slipup happens in Tasmania (not looking likely at present according to management).
The manganese is the real deal though and one good hole will give the share price a real goose. I am hopeful that this round will give us this.
SPI Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
