excellent announcement, page-7

Firstly here is a link to WA news item which doesn't tell us anything we don't know already.

http://www.wabusinessnews.com.au/en-story/1/67442/Straits-Asia-secures-435m-loan-

Secondly, SRL does not typically trade at any premium to the SAR investment. This is somewhat of a quirk of history insofar as SAR was spun off successfully because the aussie market did not properly value it. SAR has therefore traded at a premium to what that aussie investor market has thought it was worth. Until quite recently the SAR investment value approximately equalled the SRL market cap.

Finally, there is one other major issue that requires resolution before we can be satisfied that SAR is on the way to full year production of 11mtpa. That is the extension of the mining area for its Sebuku operation (I think to the north but can't remember). That is pending decision by Indonesian authorities. Once granted then reserves can be increased and the mining area extended which will add to production. I do not believe there is an issue with selling the coal at a profit. SAR is a very low cost operation and not subject to infrastructure bottlenecks typical in Australia.

If the spot coal price does start to stabilise and increase then SAR/SRL will start to approach its fair value which for SRL is closer to $5 share. So there remains a lot of upside in my opinion. Remember we have close to 6mt of next year's production already sold at USD112t average (from memory). That's about equivalent to AUD160t.

regards
DF