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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by ark88on Sep 06, 2012 1:27pm
205 Views
Post# 20326123

RE: RE: CC Under Pressure...

RE: RE: CC Under Pressure...

No need to lose sleep over supply/demand equation. Just focus on the price of metcoal and direction.

 

As for David Stone's much anticipated treatise, isn't it irrelevant given the macro environment now?

The thing that matters now is not the Mine Plan, but Management Plan to sustain the company until the market returns for their coal. If management issues a Mine Plan without a plan to sustain the company, then the SP will drop to pennies. Options are few. Their assets in NECC is pledged against the $50 mil. loan. They could try to raise capital by issuing stock/warrants, but the problem with this is that I figure they need to raise $20-30 mil. just to be safe, which makes it highly unlikley given the present SP. The best scenario short of an outright sale is some sort of a strategic partnering with a large mine or steel company for future considerations, such as an offtake etc. They have nothing else to put on the table. If they can secure a strategic agreement, the SP will soar. The best option out there, IMO.

 

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