GREY:CPYCF - Post by User
Comment by
The_Shadowon Jun 21, 2014 3:02am
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Post# 22682270
RE:Quinsam lays off 1/2 workforce: Aus. scraps coal expansions
RE:Quinsam lays off 1/2 workforce: Aus. scraps coal expansionsLOL!
Mokita you are obviously too ignorant about how commodity cycles always have moved for 100s of years as you think that your post is negative news for us actual CEC investors!
What you have posted is actually positive, good news for coal since this is the way commodity cycles have always worked. When there is too much supply vs demand, then the price of the commodity comes down so much that many producers are forced to reduce production and/or even cease altogether. Then with significantly reduced production the commodity supply/demand comes back into the necessay match which then allows the commodity price to start rising quickly, especially if the worldwide economies are heating up at the same time.
So Mokita you can absolutely count on the price of coal making a significant recovery before the end of the decade. And CEC will be extremely well positioned to take full advantage of this having basically gone into hibernation the past few years riding out the bottom of the coal cycle.