RE: RE: Too Much Pumping
Given that power plants want the lowest price for coal and for the longest period of time, one should be cautioned as to the high prices being tossed around. In addition, the recent PP points toward Russian interests trying to low ball the coal numbers thinking PCY is both desperate for cash and cash flow given that it was underfunded. With the PP now in place, more rooted discussions can now progress. Here too, I caution on optimistic time tables as to the off-takes. Given that power plants have been indicated by PCY with respect to off-takes, one MUST assume said plants currently have ample supply and contracts in place. Hence, they either have expansion plans to take on more coal and or we knock someone else out of the running (ie: like a contract set to expire) based on price. But make no mistake. Any news on "off takes" will be a positive event but the game changer, imo, will be the MOU's where Chandgana in concerned. Like the "off takes" that involve Russian interests, those MOU's that involve Mongolia and a new power plant can come at anytime.