1/2 yearly out monday, page-5

re: 1/2 yearly - comment roidz ? Izalokar, Well once again a CEY report with lots of froth and not much substance. The loss on Newtsan was always expected but they continue to gloss over the fact that there is still fundamental problems at the mine. I walked off the face at 6am this morning after watching the roof fall in again this just after we completed a component change out that was needed because it was so worn out it we were going to leave it in the goaf buried forever. Result more lost production.
The gas problem has not gone away we are spending $500k a week pumping NO2 down the mine, Basically Newstan is a basket case It needs a major injection of capital and more experienced management. Unfortunately CEY had neither the experience or deep enough pockets to take on Powercoal and make the whole company run more efficiently they have had to cherry pick the easy gains and apply the capital to those mines Mandalong, Angus Place, Anvil Hill. The report hints at this with the reference to the Mac Bank involvement all the mines mentioned are near the end of their life or need large licks of capital in Newstans case around $50 mill for a new set of supports plus general upgrading of mine plant It would be easier tp package the lot and sell remembering that when the group was bought it was for only $330mill and that was when coal was in the doldrums. So watch this space a salr now would reduce debt and fund Anvil Hill development and ill probably end up with a new boss. Cheers roidz.