IMO, The best way for CKA to get a favourable off take price deal is for it to demonstrate that it can deliver:
ie: mine, barge & sell at least 20K ton a month of premium quality PCI coal. This, IMO will remove some risk for the prepaid buyer.
Otherwise, CKA has to bite the bullet and forge ahead and simply sell on the spot market which, at present,
is excellent.
The speculation of a 18:1 strip rate later down the track is, IMO, premature because:
-at present the strip rate is somewhere between 5 & 6
-the has not been enough exploration done on other tenements to definitively qualify the strip rate. Again, IMO. if the strip rate is say 18:1 + it would make better mining sense to go UG if the seam is deep enough
to do so. (UG is labour intensive but Indonesian labour is cheap)
CKA Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
