New thread seeing as the other thread title seems no longer to be the case.
As mentioned
here by scatterpult
So things have plateaued out a bit and the meteoric rise of ESI overnight is no longer looming.
It may come eventually, but there is nothing to indicate it is going to be tomorrow. It's had a good run up to this point all things considered.
So now that the sobering fact of the matter has hit home. Perhaps we can re-spark some conversation about the company and why we feel it is is a good or bad investment.
Having only just bought in, I don't exactly share your frustration at the delay of news, in this company at least. I can say that I have shared it with NSL for the past 10 months, so I know a little bit about the pain it can be waiting for the news that is finally going to kick things off.
What drew me to ESI as an investment was two things. India and cleaner fossil fuels.
India as you are probably all aware has quickly becoming the worlds fastest growing economy. With it, there will be a massive expansion of infrastructure. It is unlikely that a country such as India will be too quick to invest in green energy, specifically on the scale that is required) such as wind power or solar and it is far more likely that to keep costs down, they will attempt to preserve their existing power generating infrastructure which is predominately coal power plants.
As India doesn't have a very large amount of domestic sourced coal, it currently imports a great deal of it. If a domestic solution was to be provided (such as Coldry) , it would make perfect sense for the country to invest money into it, thus reducing it's current reliance on imports.
Much like NSL are turning low grade iron ore into high grade using benefecation, ESI are performing a similar process by turning lignite into coldry pellets. The problem that both companies face, is that things really do move slow in India. Up until the point that they finally start that is.
This similarity in the companies process in this simple regard is one of the reasons I was drawn to ESI. Taking something that is near useless and turning it into something of value is one of the best possible things a company can do in my opinion. There is always bound to be a good supply of crappy material just waiting to be turned into a product that is not only high quality, but entirely usable.
Does it make sense to continue to use coal fire plants? Not at all. Will the world change overnight and stop using coal? Not at all. Too many economies rely on it heavily in my opinion for anything to change quickly. Even Australia, with the means to go solar is still sourcing 65% of its energy needs from coal.
The long term future (30-50 years) for coal is bleak. The short to midterm future for cleaner coal is bright.
That's my thoughts at least and I'm looking forward to hearing some of yours.
