Agree with you JX. In this fledgling company the sale of coal from Mamahak, and issues to do with sale of coal generally and rights to tenements, are certainly material events. It is disappointing that the company is not making announcements directly through the usual channels.
If it was not for the newspaper we would not have known GPK was up for sale. If it was not for a major shareholder on hotcopper we would not know much of the due diligence is done and final bids for GPK are in the process of being made. If it was not for that shareholder with a presence (at least occasionally) on the ground in Kalimantan we would not know the river was down and coal movement had stopped.
I don't know why GPK is on care and maintenance. If it is profitable surely the company would keep producing? I just have to guess that it is because the river is down? GPK was touted (in stockbroker reports - not any information provided by the company directly to shareholders mind you) as a major hub for surrounding developments. Surely this now has to all be revised?
We are jumping up and down about a 49% interest in less than 300million tonnes of thermal coal at TJ, on which we need to spend money to get into production, while also jumping up and down about selling GPK with 248million tonnes of thermal coal and already producing. I don't get it... It would help if KRL management explained why 150million tonnes at TJ (half of 300million tonnes) which needs expenditure, is a better prospect to hang on to than 248million tonnes at GPK, which is meant to also become a central processing hub for other tenements.
I have hope for this company and still rate it as a buy, but only because I bought in at lower levels. I feel sorry for those who bought in at levels above this.
KRL Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
