The market did not like the reduced output of saleable coal in the 4th quarter of 2004 - it was down some 25% compared to that produced in the 3rd quarter, 2003. Longwall issues were apparently responsible for the reduced output.
That said it is worthy of note that Mandalong began to produce in late January this year. This, coupled with the startup production from the Mannering Colliery should ensure that CEY will either meet or exceed its 2005 Financial Year forecasts.
CEY is a strong growth company and in my opinion any share price weakness below $4.00 represents a buying opportunity.
Moving into 2006 and beyond I do not believe CEY will be available for purchase below $4.00 - I would expect it to be upwards of $5.00 by then.
CEY Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
