reading between the lines

Hi all

Reading between the lines of this latest announcement from RES has got me thinking......We RES have just taken our 1st step in becoming a coal mining company in the Waterberg coalfields, just like JS twins who one day will take their 1st step, we (RES) have just taken our 1st step in becoming a coal company.

This is a GREAT DAY FOR RES and its shareholders, most of us have been in this since the OLD CDS DAYS, some shareholders are new to RES, but one thing that we all have in common is this, we all know of the potential of what we have over in the Waterburg coalfields.

A mine life of 100 years, a 38 year contract with India’s 3rd largest power company (CESC) for 139 Million tonnes of thermal coal, a 2nd contract with Bhushan Steel for 20 years of between 0.5-1 Million tonnes per year, with a mutual options to increase this amount even further, CESC will be building a 2x660MW coal-fired power station adjacent to our mine, a 10 year rail haulage contract with Transnet for 4MT in the 1st year and 5MT in the 2nd year, 6MT of coal for the next 8 years and more than likely a extension of the haulage contract with Transnet.

Also don’t forget of who we have behind us (PJ & SM) they both have shown of what they can do, what they have done since coming on board on RES. During the last 5 years we have had the GFC, doing business was hard enough with the GFC, but when you think about this, not only did we have the GCF, but also we were doing business in SA, to which is a very difficult country to do business in.

They have achieve a lot when you think about it, from a DREAM of mining coal in SA in under 5 years to becoming a company that is starting to move forward, with its plans of becoming just that (a coal mining company in SA)

I’m very confidence that we will get the finance for our mine, and then once we do the sp will be a lot higher than today’s sp.

The future indeed is starting to look a whole lot better now than the last few years.


Good luck to all that hold RES