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On the 13 of March i mentioned a list of coal related shares....

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barry_1
Super Contributor
...(see under share discussion)i drew up a wathclist of shares on the 9/3/09....now if any one had done the same and then traded the two best capital gainers at that time the results would have been CZA +58% AND SNU +43 %....i bought both and have kept adding to them....as i see it there is still a great deal of upside left....REALLY ONLY MY OPINION!
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6 REPLIES 6
Major
Regular Contributor
There may be some upside, but we need to get clarity on production figures first. Export volumes are down. Met coal is nearly dead, and Eskom now faces reduced demand due to the economic downturn. Thermal coal prices are down 50% from their peak last year. Also look at BDM's results soon. They partly compete with SNU and if they are seeing reducing contract mining then this should be factored into any evaluations.
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SimonPB
Valued Contributor
barry, what's your take on sa coal holdings ?? they seem to have lost the plot a whole bunch ??
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barry_1
Super Contributor
Hello Simon and Major,Yes in alignment with with all the resource shares certainly all coal shares hesitated....SACoal has started producing at Mooilpaats....An important agreement has also been signed last month with Exxaro to exploit coal reserves,which shows that a major company has taken an interest in CZA....besides thermal and steamcoal,the only coal suitable for coking coal quality is found in the Limpopo province,which is now to be exploited.It is also reasonably shallow and is likely to lend itself to opencast operations,cutting down costs....This is probably why its price has taken off.... As long as it it is the top gainer i shall follow it.See my previous posts to see why i favour coal shares at this juncture....the closure of the Royal Bafo keng coal mine and other small operations will in my opinion help the surviving coal mines to thrive...Also the Canadians have deep pockets....OMO
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niemand
Contributor
Barry, any idea why the volumes just rocketed today? Seems like something is going on here...
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barry_1
Super Contributor
Sorry Simon,u were obviously referring to SAH.The coal companies have similar names.I replied about CZA which is in excellent health....as far as SAH goes they are now suspended at the moment.They were under funded from the start of their operations and listed in the last coal bull run.They did not do their homework,i'm afraid ,did not procure markets and had logistical problems....Even if they solve all problems as far as i go it would stil be a no,no!
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barry_1
Super Contributor
Two days ago there were options action on the AIM market in London,how ever i dont think that is the whole story as CZA is a very attractive entity and coal prices are starting to firm as well.
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