No, but seriously uniqque, EER is a waiting game. They have the resource and no doubt they will soon have the appropriate approvals to mine it. What they don't have any clarity over however is the availability of transport to get the coal to the port.
With the Hancock rail link now approved and going ahead no doubt EER will be in negotiations to get aggrement to use this line. If they get said agreement, and one assumes it a simple question of how much, then EER will need to figure out the final pice of the puzzel, which is the line extension to Blackall, and related financing.
Hancock are quoted in The Age today as saying they expect coal prices to be back over $US100 a tonne by second half of next year. When prices recover (and they will recover) that is when the investment activity int he sector hots up. I suspect that EER will be trying to get their ducks in a row with a deal to access the Hancock rail line. With such a deal in place EER's deposit can be valued whereas as the moment it cannot.
Until then its a waiting game but if the prices move as expected next year and if EER gets approvals for MDL and Hancock rail access then I would expect EER will be in play with a number of potential bidders looking to secure such a massive and relatively cheap asset. Sure there will be the usual crowd telling us that its not premium quality coal but its exactly the sort of coal being purchased by for use in some Indian and Chinese power stations who need good long term supply. Its not a matter of if they want it but rather what it is worth to them.
EER Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
