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Coal Clippings.....no 2....

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barry_1
Super Contributor
I was not going to add an update till July,but some important events have occured so heres next months version.REMEMBER DO YOUR OWN RESEARCH ,ALSO I TRY TO VERIFY ALL MY FACTS,BUT GET IT WRONG SOME TIMES, ANY OPINIONS ARE ONLY MY OWN.....1. I feel it is very important to know everything there is to know about coal....A very important article on... miningweb.co.za....today is HARD TO FIND COKING COAL PRICES ROCKETS AS GLOBAL STEEL DEMAND ORBITS....Artilce by Keith Cambell 20/2/2008
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11 REPLIES 11
barry_1
Super Contributor
2.Its difficult to decide which coal shares have sufficiently large quantities of coal to generally fit into the coal section.According to JSE headings under coal we have HWANGE,KEATON and SACH only.Under ALTX we have WESCOAL,under general mining we have the diversified miners which in many instances produce more coal than those in the coal sector,some of which caol is their principle product.Under general mining are the large producers such as AGL,BIL,EXX,SOL,and smaller producers such as CZA(semi large and growing),MIRANDA,MERAFE,PETMIN,SENTULA and upand coming MVELA RES.
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barry_1
Super Contributor
3.from an article in Finweek 5 June 2008 i quote one paragraph...."Merafe has been diversifying and has a joint venture with Scharrig Mining/Merafe Coal which is also fetching record prices,however the coal will only be bought to account next year.The joint venture will produce 1m t. ".....of interest PETMIN produces anthracite of good quality....One should read the Stock exchange News Services(SENS) announcements of MMH,WSL,CZA etc.....Its a great pity that there is now a great deal of speculation in shares of MMH and WSL,i think better to ride these out,as only a few will profit from shorting these.The real profits will be made from keeping these longterm.
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striker
Super Contributor
And your stock pick is -----?????
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barry_1
Super Contributor
i provide snippets that my fellow forumites might have missed,to help them in their selection in the only section of the JSE tha has positive shares with strong growth at the moment.Read also Coal Clippings no 1...NOW U DO THE RESEARCH AND LET US KNOW WHICH U THINK IS A GOOD BUY at this moment,in this way we help each other!
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Plonky
Super Contributor
I really fancy CZA, it has improved regularly thoughout the year. I currently hold CZA and WSL, both of which has shown good returns. WSL is risky, because its price fluctuates quite a bit. I have heard projections for CZA of as high as R44.
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striker
Super Contributor
Barry - My money is also on CZA.
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barry_1
Super Contributor
Thanks Plonky,UR our roving reporter out there in the coal world! You contributed to the first coal clippings as well.I feel in my small way i also added something as i was the first forumite to pin a clipping under CZA in Feb. it is,my major holding at the moment.It has the most potential,no wonder ACL etc all hold to obtain a stake in it and are trying to get sole control over this major greenfields operation.
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Plonky
Super Contributor
Hi Barry... thanks for the mail. I must admit I have a bit of an advantage, as I work as a consultant in the mining game. Coal is the "buzz-word" as the moment, and coking coal is high in demand with news of record high prices. CZA get lots of publicity, and hold large reserves in Limpopo. They have lots of big players (mittal,merryl linch, Tokyo et al, etc) all very interested in investing in CZA. I speculate on WSL and rely on CZA.
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barry_1
Super Contributor
thanks all,my second largest holding is MRF as they use far less electricity with their Premus technology tan other chrome producers and their connection with Xstrata fot the lowest cost production in the world,it also uses about one third of te coke required by conventional technology.
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Not applicable
Barry dude...just some titbits to chew on. Recent commodity boom was brought on by emerging market demand namely China, India & the Ruskies. All currently experiencing sky high inflation and with the Chinese putting up energy prices yesterday the world's "factory" ain't gonna be el cheapo much longer...there is a chance that we will now see some demand destruction. adios amigo
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barry_1
Super Contributor
Thnks Dinen,mind u ,that might take up to a year to work its way through the system. These countries have been slowing their overheated econonmies for quite some time now,probalbly why all our resources not in great demand any more.Hopefully by that time demand will pick up from the West again as they come out of their recessions by near end of next year.
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