short position, page-6

Hi QuarryST,

Although your numbers look good, BTU is not cash positive on current production.

IMO, the market has a negative sentiment until after the following:
1. Confirmation of what impact the final ruling has on Escarpment Mine Project “EMP” fundamentals; and
2. How BTU will finance the EMP ramp up and how painful will these terms be to the shareholders


However what puzzles me is that if EMP is the jewel (with the limited money they have), why are they purchasing Coal next to Takitimu Mine (“BTU’s domestic coal strategy”) and spending money relocating.

We will find out their end of March 2013 cash position in the next three weeks or so

Also re: share price, we can't forget that BTU got kicked out of the S&P/ASX 200 from 15 March 2013 and therefore institutions/superfund may have been unloading them to meet their risk weightings.