The latter stuff is vital for the making of steel. And steel is becoming more and more needed to feed the growth of infrastructure in developing countries, not to mention more established areas of industry. I bought the shares for about 30p and saw them rise to more than 50p, partly I suspect because two big investment institutions came on board. Then came a whammy. There is now a legal tussle with the Polish government.
When the news came the share retreated to my original buying price in a shake of a donkey’s tail. But I think the selling may well be overdone and the result might be a second chance to buy the shares cheaply.
As usual, with mining matters, the situation is complex. But as far as I can gather, the Polish government has not confirmed an environmental consent within a three month required time-frame. So Prairie has launched a legal case against the Polish Dept of the Environment to secure its position.
Now, whenever court action is mentioned a lot of investors take fright and drop the shares. But there is talk that a Polish administrative department has simply not dealt with things within a time limit. Polish politicians will, after all, want the local jobs that Prairie will bring to coal mining. And Prairie reckons that its legal action will bring the possibility of a lost opportunity to the attention of local residents who may not be pleased by the delay.
We can’t predict the end of any legal case, where we don’t know all the facts. And taking on a government is rather daunting. But I will certainly not sell my shares until we know the outcome.
And now the Punter’s Return is open.
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