Riversdale is drilling one of the worlds largest know undeveloped coking coal deposits. Its only 5 days sailing time to India and they sold a tiny fraction of their leases off to Tata Steel for $100m. They own more ground than CVRD and thats likely to mean more coal. CVRD has a current resource of 2.5 billion tonnes of coal.The current climate for coking coal is exploding with the Chinese becoming net importers of the stuff. Everyone is focused on iron ore and missing the bigger picture. Most of the listed Australian coal stocks wont be close to this resource and we dont have to worry about bottle necks etc. They have effectively done an off take to Tata. Rivs also did a power station deal a year back. The recent relentless buying has to be fund managers hoping on board and i fully expect the stock to keep motoring. DYOR.
RIV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
