why did i sell., page-8

re: coal Bello,the report paints a rosy picture but also look at the time frame we're talking out to 25 hence. If you were to apply that time frame to the life of CEYs currrent assets most of the underground pits apart from Mandalong would be mine out, that would leave the only other producing mine as Anvil Hill. And that is why i dont hold CEY anymore. It is a very small player that can never run up against the majors because they will win every time Competition for new leases over the next few years will increase and CEY cannot match the fire power or resources of the RIOS or BHPs. I have spoken before about coal cycles the last one we had in the 80s provides good examples. Back then there was a myriad of small producers both listed and unlisted RW Miller, Buchannon Borehole,Coal and Allied who were all good well managed miners.but eventually they were swallowed up by the big boys because reserves were used up and they did not have access to cheaper capital or they just faded away as the coal ran out. Also at the same time it was the begining of the push for more higher production open cuts which gave the big boys a price advantage. Fast forward to today now its not the open cuts setting the records its the highwalls with longwall faces running off them.CEY gets exited by chasing 4 million tons annually for Mandalong, where 100k up the valley they are looking for 10-12 million from one mine, thats almost as much as CEY will produce as a company for 6 months. For a true investor you have to look at the big picture unfortunately not every does nor for that matter do they know where to look. I have watch analyst come down a mine they get shepherded by senior management they aren't taken any where near any problems and they dont talk to any or ask any questions that could highlight future problems they rely purely on what the management want them and the market to know. By the way i am not a greenie and i have been in the industry for 26 years the last 4 under CEYs ownership for how much longer i dont know the rumours are coming thick and fast but as yet we have seen no site visits which contrasts with the Powercoal sale when they crawled all over the place but we have been told that manangement want the new face installed on the next block by 1 July for the new owners maybe then all will be revealed. Cheers roidz.