if it breaks 20 cents then we run to 50 cents, page-26

robmillion, I doubt it will go to $2 by year ens, but hey I wouldn't complain. Coal prices have doubled since last year.

From memory profit per tonne (as quoted by directors at AGM) is $11-$12 per tonne, now I'm assuming that was when Thermal coal was $55 per tonne and Coking coal $96 per tonne. Now we have prices of $110 and $200 per tonne respectively.

So if profits become $22-$24 per tonne and lets say we end up with 560mt (800Mt x 70%)

30% coking 168Mt (profit doubled I presume for coking)
70% Thermal 392Mt

Lets say CDS mine 5Mtpa, thats a mine life of 112 years.

Thats $110m gross pa for Thermal coal.
Now if we said we have approx 700m shares fully diluted and at 17c, thats a market cap of around 115m.

110/700 = 15.7c EPS, so whats a reasonable PE ratio?
Lets take 10, 1.7 x 10 = $1.57. A lot to overcome before we get this far. Thats for only a 5mtpa operation could quite easily be mining 10Mtpa and PE could be higher.
Something to think about

Not sure how long it would take to get to production and what the CAPEX would be.

We know infrastructure isn't far away and there is a big demand for the coal within SA