I could not agree more, particularly on the long-term outlook here. I had seen the holdings elsewhere while researching PCY but it was their presence with results in Mongolia that drew me to them.
While I had not heard of the possible IPO in Hong Kong that is great news, not just for exposure to an investor base more aware of the growth and modernization of the investment environment in Mongolia, but that also potentially answers one of my concerns with PCY, namely funding as they ramp up. There is the cost of the power plant, the electric lines, the rail spur, the initial overburden strip, further mine fleet expansion, etc.. Granted, they seem on the way to developing offtakes to build revenue stream, but a faster pace would only improve positioning in the evolution going on in Mongolia.
The company seems to have pretty good relations with the government agencies, even though they were not in the recent grants to the major coal bed (Mongolia seems to be trying to spread their risk and the rewards). The timeframes within which they have been granted resource licenses and especially the permits for moving on the second coal bed and electric plant are amazingly fast by world standards.
IIRC the direct stake retained in Prop. Pt. is 45%, but it is actually a little higher as PCY holds something like 10% of Victory Nickel, which in turn holds 10% of PCY and did before the Prop. Pt spin-out. I have not seem anything of either reducing their mutual holdings. So I guess that raises PCY direct + indirect ownership of Prop. Pt to 46%. If this stake in Prop. Pt is retained then we have three active forces to push the pps here: the Prop. Pt value growth, the coal business in Mongolia, and the development as a (the?) major electric supplier to the Mongolian region.
The only thing that bothered me most in the dd arena on this is that I have not seen where there are downsides, beyond the common need for more capital. The demand in the Mongolia area is going to be insulated from general world economic downturn, governed much by regional momentum.
Cheers, still picking up more on punishing days here.
