Thanks for the assistance – I cant see them getting anywhere...

Thanks for the assistance –

I cant see them getting anywhere near $30m (cumulatively) over the next 5 years from the coal mine, including any repayment of their loan.

Director and KMP salaries are c$800k p.a and they appear to be running a decent overhead which puts them at c$2m total cash burn p.a.

My gut feel is that they will need to raise money before they start seeing enough money from the coal asset to cover overheads and even then they wont be able to make a meaningful dent in the $30m required for the trials.

Market announcements from the company are also a bit too wishy washy for my liking and too many unknowns around the coal quality and the financial metrics of the mine for me to be comfortable having a punt.

Im also really not sure what level of planning (if any) they are able to credibly do with respect to the trials and what calibre CEO would come into the company based on what’s known publicly.

Will definitely keep a watching brief on the stock though…. I think there is something there, the biggest concern I have is that unless coal really spikes in the short term (not a view I hold) they will need to raise money to fund the overheads and any trials.

Am not wanting to be overly pessimistic and I reiterate that there are a number of things which I may be misreading or which may be ‘commercial in confidence’ and therefore not able to be disclosed.

Hope it all works out for those long term holders.