Thankyou for your concern cashew. Its a confusing time to be a CEY employee at present. But one thing has not changed and you picked up on it in the last report. The true state of affairs are never quite revealed! Heres the heads up on what we see as employees. As far as ramping up Manadalong to 6mill plus production within 2 years forget it! They have neither the equipment nor the abilityunderground to make it happen. There is limited compatability with the longwall equipment from Newstan, shearer, 5 chocks out of 146 and two drives the rest is obsolete. mining approvals dont permit them to increase the width of blocks to allow the extra production and the local residents have already beaten them once on that count. As for Newstan the plan is to shift a third of the workforce over to Mandalong to help with the increase development needed to increase production. From the announcement they left a few holes being that from somewhere they have to find around 2.5 mill tonnes of coal to meet existing contracts until around 2012 so even if Mandalong increase production it will be eaten up by that low paying contract there will be none for export. But the plot does thicken! Presently underground at Newstan we are 1/3 thru 23 block. We are 1/3 developed in 24 block and starting 25. The miner that is to go to Manadalong 1st will finish the set up of 25 then go with around 65 employees. We will finish off 24 and that miner and another another 40 men will go leaving enough to pull 24 block. Then we will be retrenched. So the company then applys to extinguish the existing contracts as mine is technically closed which removes the major impediment that stopped the sale process this time. It will cost them in short term but they have a buyer willing to pay what they want provided the contracts are gone. And i am staying put they can pay me out if they like or i learn how to speak Chinese for the new owners. So at around 2.70 is it a buy may be for a long term hold but there is more pain i think to come in the next 18mths -2 years before we get to see real upside. Cheers roidz.
CEY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
