Beacon Hill Resources Forum

Dangerous game shorting at these levels

idg69 - It certainly is a long and uphill road for BHR in the coming 12 - 24 months, whether they can last the course remains to be seen, as usual us small PI's have been shafted, you are spot on with your views on coal, very unpopular, I think the carbon capture could be good if they can get the technology right, I think EON were looking at it for Kingsnorth Power Station re-build however they could not get govt funding for unproven technology. Unfortunately we are stuck at the bottom of a cycle, I often wonder what I was buying when I first bought in 3 long and painful years ago, we had no washplant, no rail, nothing really other than the mine although saying that the price of coal was over 60% higher then so we could have sent it to mport in taxi's and still made money. I'll give that Chasing Madoff a go, could do with something to take my mind of this awful share. Good luck!

bigdog - I am 100% behind you in what you say. Your summary is spot on and I am in exactly the same place - trapped here with very little of my original capital intact. The AIM market is a toxic place and not for the feint hearted private investor at all. BHR have so much stacked against them now in financial, operational and market forces that I'm getting less confident that they will pull through. Fantastic if they do but the next 12-18 months is going to be tough to say the least. To cheer myself up last night I watched a cracking documentary on Netflix - Chasing Madoff. It made me grateful for where I am. Definately worth a viewing. I have also been doing some light reading on carbon capture technology. Coal is such an unpopular fuel (but very necessary for developing nations) it would be good to see some of this technology rolled out over the next 10-20 years as it would help the coal producers no end and would help lift investor sentiment in coal stocks. Would like to think BHR can get through the next 12-24 months and then let's see what happens. All the best idg69

BHP bullish on coal demand, but says prices to remain weak

World’s No. 1 miner BHP Billiton (ASX, NYSE: BHP) (LON: BLT) said Wednesday it expected demand for coal to keep growing over the next 20 years, despite prices are likely to remain low for a while, as a consequence of oversupply. Speaking at The Committee for Economic Development of Australia (CEDA) in Brisbane, the company’s coal chief, Dean Dalla Valle, said he expects most demand growth to come from outside China, which has been the primary driver of global commodity prices in recent years. The nation currently accounts for about 50% of the world's coal consumption. “Over the next couple of decades we expect global growth in demand for both energy coal and metallurgical coal," he said. Although "the likes of India, a country not overly endowed with metallurgical coal, [is] anticipated to be the most significant source of new demand" for coal used in steelmaking, Dalla Valle added. When it comes to prices for the commodity, however, the executive provided a rather grim outlook, as China, the US, Canada and Russia have been flooding the steel-making market, and new player Indonesia has swamped the energy market, causing prices to plummet. "It's tough out there. It's hard to see any relief in the short term certainly when you have such strong supply," he said.

me - I would not write off further large drops, as it stands we are not funded to become a teir one producer, the $20m offer for the washplant is conditional, we need a further $10m for infrastructure works, if this comes from dilution then it is more than our marketcap so could be 1 for 1 so thats .25 before you start. Even if we do get to tier one then unless the commody market picks up we will struggle to get a decent margin, also while not producing they are burning through cash so anything we have at the bank which I think was $8m but the costs are $11m, you can work it out for yourselves, I've been in this for ages and am angry that the bod has lied to us and bent the truth, dog of a share which will go down with many other as AIM disasters IMO!

dont think it can go below 0.25p can it? just shows how low we are - im staying in and hoping for the recovery - who knows what will happen in a couple of years - remember wasn't it only a couple of years ago we were at +13p - in truth no one knows - that 2p could become 10p or the co. could go bust! it majorly depends on the coal price rising - as we are at give away prices at the moment - coal is too cheap due to oversupply and not enough demand - this hopefully will change

thing is when we are so low - and it suddenly surges, we will all have wished we had loaded up when the price was this cheap - its the risk we take - buy or not?

average down if your confident?

depends when - it someone goes for a T/O now im only guessing between 1-1.5p