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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Post by bond46on Jul 13, 2012 3:46pm
390 Views
Post# 20112260

RE: a vote of confidence for CMK

RE: a vote of confidence for CMK

Though uncertainities will prevail in the market, the liquidity concern might be overblown given that CMK has other assets which it can liquidate and meet obligations. The repayment of the loan is almost 1 and 1/2 years away and by then, if it has gone into commerial  production again, it may be able to renegotiate the loan and make it convertible into common stock. Or it might go joined venture with a major, especially if there is good prospect for a long wall production. Met coal is here to stay and the so called supercycle in commodities will last for a very long time given the urbanization process in China and India, and we have not talked yet about the basket case, Africa. Now, as far as China goes, the demand for coaking coal will not diminish since China is and will remain an export country and since it does not have capital to export, it will export labor or the products of labor. So it's important for China to secure competitive prices for raw materials in order to make a profit in its value added products of steel and so forth. But also internally China will need a lot of metal to modernize and raise the standard of living of its people.Bear in mind that the per capita income of the Chinese is $US 4K a year, well below that of the West's.

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