Checking in....Access to the Port of Sovgaven is a significant event that was totally dismissed by investors. Until port access was obtained, everything else was for not when trying to service the Asian market(s). With port access and just as important, a coal storage area, it will not be much longer til an Asian related off-take is embarked upon.
An initial 25,000 tonnes a month that can potentially be expanded to 50,000 tonnes a month coincides well in regards to PCY's indicated production numbers in regards to Ulaan Ovoo. Not having these numbers in front of me, I think PCY indicated production of 50,000 tonnes a month starting in July that grows to 70,000 tonnes a month by year end. Hence, and if port access is expanded to 50,000 tonnes a month, initial production looks to be absorbed by the Asian markets to the tune of 70%+ in regards to current production capacity. As for excess production tonnage, I would not expect a longer term secondary off-take to lets say Russian power plants as PCY would most likely embark upon shorter term arrangements so as to retain maximum production output availability to the Asian market(s).
In doing some initial D&D on the Port of Sovgaven, there are major initiatives in place to expand and as such, the opportunity to grow coal access beyond 50,000 tonnes come late 2012. But hey, first things first.
To close, we will have to see how things shake out over the coming weeks but last I looked, the coal markets are starting to heat up once again as customers elbow for supply. Meanwhile, lets not forget about the Chandgana permit. IMO, I think we might have word sometime in July. Hence, maybe the planets will line up once again as to a major move upward in stock price.