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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by mr1derfulon Jun 27, 2012 2:29pm
349 Views
Post# 20060610

RE: RE: Waiting for...

RE: RE: Waiting for...

Good for you, lobo, for actually contacting Sean Casey. I don't think it is a very good sign that there are delays in negotiating a spot sale for 1 shipment of coal. I suspect the macro environment is not good for semi soft coking and it is probably reflected in pricing. I wouldn't be surprised if the Chinese entity with whom Cline is negotiating with is low balling them on the price they are willing to pay for mediocre coal especially when there is soft demand for their product. Also, any buyer knows that Cline is desperate for sales. Does any buyer even really want to do business with a coal producer who is unreliable and unstable? If Cline produced a premium hard coking coal I suspect there would be more buyers willing to step up and buy their product. Cline is going to need more working capital and I could see them being forced to issue equity an unfavorable prices and massively diluting existing shareholders. With so many established met  coal producers selling at ridiculous 52 week  lows I wouldn't touch this company with a 10 foot pole. Not when you have a lack of working capital and potential equity dilution overhanging at Cline.

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