Random Thoughts as the year ends31 Dec 2024 21:11
Hi Guys
Short term holder forced into being LTH.
Bit of a ramble, but hopefully some valid points, for new and old
investors.
Remember the company was founded in 2006 to exploit Thar coal, no revenue to date, som.e progress on MOU's but not a lot for the millions raised to date.
Only one full time employee from what the accounts say , https://shorturl.at/o3MPZ
The company has many fingers in many pies, thankfully , Australian gold seems to be progressing, positive noises, have no idea if a commercial discovery, early days as ours or rivergolds share prices are relatively static or at least undervalued if a hot prospect.the jury is out.
Thar coal, two things that will enable this project:
Firstly is an onsite Thar power plant, is listed as under CPEC, that is Chinese funded priority project, conflicting statements since, as in no more overseas coal fired power stations to be funded by China, but argument is this is pre agreed, still several years down the road and no progress.
Secondly. Islamakot to Thar railway line. Obvious, but ability to link Thar to national rail network so Thar lignite can be
blended with existing coal plants fuel, maybe with power plant reconfiguration replace imported coal altogether. remember its brown coal , between peat and the black coal we know, so less energy and more water per tonne.
So announced 2020, expected build time 12 months. re-announced multiple times, last one October 2024, may be in progress, but no news. $160m for line and $130 for rolling stock, so cost may be an issue.
On a side note the PK electricity market is a bit distorted, huge imbalance between supply and deliverable demand. Massive power shortages as the network can't deliver and huge payments to power stations for committed energy production, they can't sell. Huge theft as well by consumers so less money for energy companies to invest in infrastructure.
On the positive side for us investors , we get paid either way if we produce energy or not at least under existing contracts, so a lucrative market.
Coal to gas, possible but needs huge subsidies, not sure the IMF will allow that.
https://www.energymonitor.ai/sectors/industry/huge-setback-for-indonesias-massive-coal-gasification-plans-as-air-products-withdraws/?cf-view
Green energy, hydrogen, no real market as yet, but ideal for local creation of ammonia for fertilisers, somethng that pk is
importing and easily exportable, question is cost competitiveness.
Quicker win will be to plug solar/wind into the national grid and then use track record to raise GH/Ammomia investments.
Random thoughts, every year i look back at the share price has been less than the year before, but can only hope onwards and upwards.
GLA
