C,
1. TA: SN looks like it is in for a technical rebound, which has justed started, I think.
stockcharts.com
2. Status of Properties
First, the key paragraph from the NR:
Under the terms of these agreements DJB Coal has acquired an interest of 5% of Middlemount with the right to acquire a further 65% interest, and has acquired a 10% interest in Collingwood and Onaview, with the right to earn a further 60% in each of these two projects. DJB Coal will acquire these interests in return for payment of all present and future rental costs due on the Onaview deposit, the payment of all future rental amounts on the Collingwood and Middlemount projects, and will conduct all the required engineering work for the completion of bankable feasibility studies at their cost on each deposit within 5 years, being the term of the agreements. In the event that agreement is reached over the sale of the Middlemount coal property to a third party prior to the completion of a feasibility study, the Company and DJB Coal will each have a 50% interest in the proceeds from the sale.
sennenresources.com.
2a Middlemount Property If bids aren't good to sell the property they develop with DJB, the stock will drop. I'm worried production is too far out (in that sense, your money will work harder in PVM and WTN)
2b If they sell out, from what they've said they don't want to sell for a song, in which case they raise a bunch of cash and develop their other properties internally. BHP may put out a nice price for this property. If they sell out at a good price I might be a seller on the News Release if the stock pops.
SN collecting bids, closing Jan 21, maybe selling.
2c If they sell for a song, the stock will tank, but I seriously doubt this.
With this cash they will go forward with the other properties, I think.
3. I am thinking that if they can raise cash from Middlemount, they will have more cash to develop Onaview and Collingwood with DJB, their partner with less dilution.
To be honest, I don't like the time it takes for some of these. That is why I sold FT.TO (great coal resource, timeline too) long, NEMI (again, nothing much going on).
If a stock doesn't move, I get nervous. I am starting to think my money is better in PVM, WTN and maybe even Teck Cominco or doubling up my Sherritt coal position or more Fording.
I get worried when I see things like '5 year engineering project' which is what is being proposed by AN (and DJB) for Middlemount. I don't know about you, but I don't have 5 years!!
JMO, BWTHDIK
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