RE: The big boys are going to clean up here The following article basically hits the point home as to why this, why that.....in fact it has nothing to do with what type of coking coal CMK has, but rather no steel company currently cares to buy due to supply exceeding demand and unproven production record of Cline........Until the supply/demand dynamics change companies like CMK struggle to get noticed in the market place!
FP says Cline Mining have a hard time of it
2012-07-12 06:22 ET - In the News
The Financial Post reports in its Thursday, July 12, edition that on Wednesday, Cline Mining (34.5 cents) announced a shutdown of its New Elk mine after failing to find near-term buyers for its product. The Post's Peter Koven writes that two days earlier, U.S. miner Patriot Coal filed for bankruptcy protection. While each of the stories is unique, they point to weakening markets for both metallurgical coal (used in steelmaking) and lower-grade thermal coal (used in power generation). Cline was forced to shut down New Elk to preserve its financial condition. Cline has produced a saleable metallurgical-coal product from the Colorado-based mine, and is trying to negotiate overseas sales contracts. However, it has been unable to finalize them as Asian demand becomes more choppy. Cline hopes the shutdown lasts only 60 days, but the company could make no promises. "It's difficult to introduce a new product to market when pricing is weak and customers are not necessarily looking for a new source of coal," says Fraser Mackenzie analyst Wojtek Nowak. RBC's Robin Kozar says the challenging environment is compounded by the fact that Cline "is a new entrant into the coal market with an unproven production record."