RE: RE: RE: RE: Questions to the IR "Could this be why the stock price at this point isnt moving. The fact that 300 million tons of coal will be mined (UO, Chandgana Tal) and not the 1.5 billion tons that PCY advertises on their website has in their portfolio. PCY should re do their speel on the website and corporate presentation as it is inaccurate. Wouldnt exporting coal to China from Khavtgai help in providing income to the PP and the 10% interest loan faster? PCY should be clearer on what the plan for Khavtgai is. To leave 1.03 billion tons of coal in the ground when as the company says is what China wants is a complete farce."
Chandgana Tal and Chandgana Khatgal would have NO current economic value if not for the power plant. A simple review of the website would reveal that despite all this coal, there is no immediate means to get the coal to market. In addition, there is much more coal than indicated at these two coal deposits. But why spend millions to drill and prove up additional resource when you obviously have more coal than needed? Chandgana Tal alone has enough coal proven to fuel the proposed power plant for the next 50 years and then some.
Chandgana Tal and Khavtgal are two distinct properties that are part of the same thermal coal basin 9km's apart from one another. Given current infrastructure, it is cheaper to place Chandgana Tal into production. Why spend millions more to bypass Tal to place Khavtgal into production just because the deposit hosts more in measured and indicated resources when Tal has more than enough to supply a power plant?
The nearest railraod is 160 km's away from Chandgana. Hence, how are you going to get the coal into China? There is a proposed railway to be built that is 45 km's away from Chandgana and if built, you will still need a 45 km road, rail station and rail wagons to move the coal (not to mention a border post). As us longtermers of PCY have learned the hard way, it takes more than coal to make a market.
PCY undertook the road least traveled. That is, they made and created their own market for this coal via a power plant. Had they been unsuccessful (ie: many thought this was a pipe dream), than that 1.2 Billion tonnes of coal would be worthless (ie: no short, immediate and or long term economic value). But PCY was successful. As to why there has been no real investor reaction to the same is rooted in the fact that coal is "taboo" in Canada and the US Markets. Asian investors, however, understand the significance (ie: know and advocate coal). But they are sleeping when our markets are open and awake when our markets are closed. With the exception of participating in private placements, its very difficult to get involved with PCY. Mr. Lee knows this and has said as much. That is why I strongly contend an HK listing (or IPO) is in our future. Equity wise, Asia is where the money is going to be found. Not Canada and Not the US.
But I digress.....
If the power plant is successful, then lowered costs and continued demand will exist to build another one. This, of course, is very long term but that's part of the unfolding story. Another side story is coal to liquids where deisel is hard to find and import into Mongolia. Last I looked, the very best CTL process would require 350 megawatts of input to make 80,000 gallons of fuel where the current process uses more than 1000 megawatts. Hence, not only does exporting electricity to China becomes a market possibility with a power plant, so does CTL.
But you got to build the power plant first.....