Extract below from salamans- and they are one of our more...

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    Extract below from salamans- and they are one of our more positive supporters......

    Also look at the Dundee report...
    http://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32484423&l=0&r=0&s=CPT&t=LIST

    In their opinion the decision to begin construction prior to securing fuLl funding is high risk!!!!!! Bloody hell, our risk profile has worsened not improved....

    350 from eig, + 70 from hp (here I assume the 80m was always going to be repaid on securing of funding- now it stays in the company) = 420m ... Out of 520m say, leaving a gap of 100M before any capex savings which keeps getting alluded to... I don't see the gap of 100M a huge problem, and I am sure some of us long term holders don't either who really understand the project.

    However the market as a whole doesn't like it, risk appetite is less... Management set the expectation of full funding, I won't say they failed with funding, as raising 80M will be easy later, especially if eig have tipped in their cash.... they were strong enough to walk away from the traders/off take parties/JV partners that were holding the co over a barrel...my biggest criticism of management is the fact they didn't manage the expectations of our "once friendly" analysts, this could have been done since nov last year... They could have been peddling the story of their approach a lot earlier. Again I will come back to earlier posts, what has the company spent on protecting our market cap!!

    We did not end up with the large scale dilution everyone was worried about which would have seen our shares price tank, instead we tanked anyway because for over 1 year the company has not fully delivered on markets expectation of funding....

    The balance of funding of 80M could be easily funded through a rights issue, offer the eig deal to existing shareholders, even excluding hp we have some well funded shareholders that will tip the cash in on same terms as eig but without the interest coupon.

    Back in the long term draw, the savaging will take a long time to recover. I am bitterly disappointed as this is a class project.

    For now I will continue to believe in unicorns and leprechaun's - you would assume that with approvals it should be easier to get a better deal on offtake funding and or another interested party.... I would pitch to rio Tinto, their planned expansion in the hunter valley has been blocked by the government, invest in cpl, in the same timeframe they will get coal from cpl at a much lower cost... In fact I a, sending mr Walsh an email!!.

    All this dilution should be offset through defining a larger resource which is on the cards but not for much later.

    Dear Gill, please spend some time with the analysts, make them believe again....

    The problem with having emotions mixed up in investing, should have jumped a long time ago!!!!

    You can see the tmx wasn't well informed, last night 1.6M shares traded... On the asx those close to the funding gave the heads up to their mates to bail....

    On a positive note .... Who is buying???

    SALAMANS
    Valuation & Recommendation
    The decision to begin construction prior to securing full project funding is a higher risk approach, in our view. We expect the market's concerns of financing risk and the potential for further equity dilution could remain an overhang for the stock going forward. However, on a positive note, it should allow Coalspur to move forward with the development of Vista (pending regulatory approvals), which should help to build value for shareholders who are willing to take a longer-term view. Incorporating the additional warrants granted with these funding arrangements, along with contract mining in the initial years, our NAVPS is reduced by $0.22 to $1.18. Our target price drops to $1.05 per share (at 0.9x NAVPS, down from 1.0x) from $1.40. We maintain our SPECULATIVE BUY rating.

    Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32481086&l=0&r=0&s=CPT&t=LIST#C3f4do9hekrG8bv0.99
 
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