Forum Archive Index - December 2001

["ryanrite" <ryanrite@xtra.co.nz>]

If you want coal look no further than Centenial coal in Aussie (cen)
They have it worked out
Athol
----- Original Message -----
From: "Marilyn Munroe" <who.c@res.co.nz>
To: "Sharechat" <sharechat@sharechat.co.nz>
Sent: Monday, December 17, 2001 11:11 PM
Subject: [sharechat] N Z Oil & Gas


> There has been some recent discussion on N Z Oil & Gas's Pike River coal
> field.
>
> There is a lot of coal in the world. It is a classic commodity. Steamming
> coal, don't invest. My advice for those tempted by investments in steaming
> coal is to put their money into fast women & slow horses. At least you
will
> have fun losing it.
>
> Mining is all about production costs v market prices with exchange rate
> fluctuations to manage. Markets, currencies go up & down, production costs
> stay pretty much the same. The key question is can the mine still operate
if
> commodity prices and the exchange rate turn against you. If so good, then
you
> can sit it out hoping that commodity prices & currencies move in your
favour
> and clean up big time.
>
> Pike River coal has several things going for it. The coal is high grade
> suitable for a veriety of purposes. The coal seam is on a gently rising
> incline enabling cost effective hydraulic minning and transport to the
stock
> pile by a slurry pipeline.
>
> I suspect that the bug bear for this project is transport costs from the
> stock pile in the Grey River valley to the ships side. Their proposal to
> allow the coal to be carried in overloaded trucks suggests to me that
someone
> has been ratcheting the transport cost variables to make costs meet profit
> objectives.
>
> Boop-boop-de-do Marilyn
>
>
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