Bringiton. That is a pretty mind blowing estimate of PJ's when one starts to add up the potential of CNX. Also the WA 300mt JORC inferred resource could increase, but for now we will base it on actual information provided like you have.
At present its seems hard for the market to value CNX or any UCG Co because none of them have a track record running as a profitable business, but thats all slowly about to change IMO.
On a comparison to ESG (I know its a CSG Co but its the closet that UCG can be compared to at present). And its a quick summary.
ESG: Market Cap - $691 million Cash reserves - $35 million approx Gas reserves - 21 PJs 1P or 1,195 PJs 1C-contingent resources (65% ESG - 35% Gastar) MOU: with Macquarie Generation for power generation in NSW
CNX: Market Cap - $251 million Cash reserves - $8-$11 million Gas reserves - 7,320 PJs with 4,245 PJs '1P' recoverable as syngas for power generation etc or broken down again to 2,890 PJs 1P for natural gas production(based on 3. More PJs to come soon from the WA tenements and 3rd party certification @ bloodwood creek. MOU: LONG TERM- the majors Incitect Pivot - ammonia Lyondell Basell - Plastics, methanol etc Singarini India - Power generation HOA: Short Term- 12-18 months Eneabba Gas - gas supply 168MW power station + 30MW power generation @ bloodwood creek - revenue $10-15 million per year approx.
Mineral tenements: Gold, Uranium and Magma Metals.
Wait until the market truely values CNX in the next 6-18 months. Draw your own conclusions people.
Anyone care to add to this?
CNX Price at posting:
47.7¢ Sentiment: None Disclosure: Held
