This announcement is significant, and appears to have gone under the radar.
Despite the low CP, the need/market for coking coal has always been strong, and would expect this type of coal to be the first to see price rebound.
Jindal know this, and as the coal asset is sold to a sister company, there will always be the market.
It appears that the dust is settling on the activity of former owners, although there are still potential twists in the tale.
There is a great resource here, excellent shipping logistics, and ready market. 1m mt / year is a significant market share in the Illawarra region, that exports about 10m TPA, mostly BHP.
The SP spread between buyers/sellers is immense (sellers at 0.092 and buyers at 0.02) so next to impossible to buy in at present. When there is share price activity, (if sellers start to come in lower) then some fireworks could inevitably follow.
This one also looks ripe for a pump and dump sometime in 2015, but, with a basic decent fundamental behind the company, then could well be a very interesting ride.
WLC Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
