"Smoke and mirrors, nothing but an attempt to distract the market from what is really going on within the company. Firstly, the announcement is nothing more than a vague proposal to possibly do something with the coal sometime in the future. It's like a thought bubble on paper and similar to so many past announcements from this mob that never eventuate."
More importantly there are some very serious matters to take into account.
At this stage the NT Government has not yet determined if CSG is to come under one of three Acts,that in itslf causes uncertainty as to the legalities.
Alo according to the ANN, the market currently assigns little value to them (ie Coal) .
So it appears that they are going to start up a new company, with additional expenses (Directors , managerial staff etc) for the Coal, which according to them "has little value".
It would be far better to farm out and JV the Coal, and let the Farmin JV partner pay for all up to a JORC, that would probably prove up the coal in value and then the market could imput the value to the balance of the Coal .
Not a good move, but all smoke and mirrors to defend the board members position, and marginalise CP.
CB
CTP Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
