well you have been spot on so far in your assessments and on your good advice l am please to say that l have sold 90% of my CEY, but was still not prepared for the 35 mil loss on Newstan - even Kerry Packer would baulk at that kind of expenditure! Moving forwards, they say:
"Centennial considers Newstan to be a good asset because it produces high-quality thermal and semi-soft coking coal.
But because Newstan has key infrastructure linked to underperforming mines Centennial owns in the area, the company has hired Macquarie Bank to advise on the sale of the Newstan, Awaba, Myuna, Mannering and Berrima mines.
Mr Cameron said Centennial had already been approached by possible buyers. It is believed Centennial would consider offers above $200 million"
**** If Newstan is such a basket case can they really get 200 mil or is that overly optimistic ? l was not happy to see the quote from Gloucester: " But Gloucester Coal yesterday said it was "actively pursuing growth opportunities".
"We've embarked on a growth strategy," Gloucester chief executive Gavin May said. "We'll explore any options that are out there."
*** Since l also own GCL l dont want them buying Newstan, as they have no underground experience. l was expecting them to bought out by a larger player! **** Also, with the thermal contracts back to $47 this seems to be as high as it will get for the time being and likely downside later in the year. Do you think it wise to wait for sale of Newstan or get out now ? Are you following the EXL debarcle at Millenium with 65 mil cost blowout ? They have trumped CEY - is there some sort of competition to see who can lose money the fastest ? Is there a prize ? Cant see one for the shareholders !
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