My view is that while BB and myself are happy to share whatever info we come across (whether through speaking to management or the industry), people need to be realistic about expectations in that anything can really happen. They may get to the end of negotiations and not arrive at amicable terms, or they may reach an indicative agreement but fail to reach a commercially binding offtake with whichever party.
We are in the same boat as all other LT holders in that we are all anticipating a turnaround on the back of a financing and offtake deal. One thing I think people can reasonably conclude, even in the absence of updates from management, is that the market is significantly in Cokal's favour and on the balance of probabilities, a deal of some sort is likely. Strength in coal prices and markets has been sustained since late last year and if they are to get a deal, there is no better environment than what we are seeing in current markets to be negotiating in.
CKA Price at posting:
4.4¢ Sentiment: None Disclosure: Held
