under the radar and undervalued

A great chance to buy this little gem, IMO.

* Experienced directors, they are founders of Nucoal South Africa which was sold to CZA in Oct 2009 with R650 mil.

* The company has already started to develop the site, to begain operation in July once water license approved.

* Start with open pit 2 Mtpa ROM (1.25 Mtpa saleable) from July 2012 plus underground with the planned ramp up of the operation to 4 Mtpa ROM (2.5 Mtpa saleable) in Q4 2013.

* wash plant on the site and due to commission, processing capacity of 2 Mtpa ROM or approx. 1.25 Mtpa saleable product. Can be expanded to processing capacity of 4 Mtpa ROM in late 2013.

* Majority of production will be export grade thermal coal product although anthracite will also be produced for sale in local market.

* Completion of the siding is expected in 2nd half of 2012 with rail shipment made from other rail sidings available in the area in the interim.

* Transport agreement signed with TFR to provide 1.5 mtpa rail capacity to either Durban or Richards bay, account opened.

* High CV 28.2MJ/kg (around 6735 Kcal) though high sulph (1.43%), yield around 71%.

* Directors hold more than 50%, Top 20 hold 78%.

* No debt.

* Other attractive projects, including Newcastle phase 2 and Waterberg project (2-4 billion tonnes target), all close to rail.