27 dollars a share - respectable bid for felix, page-23

How does a price of $27 in cash stand up ($24 in stock) with the thermal coal price trading in an AUS$75 - AUS$85 trading range per tonne.

Felix forecast coal to be mined is 9.6 - 9.8 million tonnes for year ending 2012 from Moolarben alone (3.45 million tonnes sold for the life of the mine). (Yanzhou may consider using their more intensive LTCC longwall mining method raising the underground mines proposed 4mtpa to 7mtpa).

Felix propose to raise production at the Ashton Mine to 6.5 million tonnes per annum (mtpa) (Felix 3.9mtpa) and the Yarrabee mine from 1.8mtpa to 2.8mtpa. Production at Minerva is 2.6mtpa (Felix 1.3mtpa).

This adds up to 17.6 - 17.8 mtpa for Felix Resources. (2009 was just 4.71 million tonnes)
@@@@@ this does not include production from the Harry Brandt future mine, Athena near Minerva (560 million tonnes) and Wilpeena North of Yarrabee.

Total production could easily reach over 20mtpa.
Certainly the coal price does matter her, BUT who knows what is going to happen in the years to 2035 - not worth guessing really.

YOU CAN SEE NOW WHY some see a price of $35 per share as the true price of Felix Resources: Well that is for them.

****Remain set to accept $27 a share for Felix Resources (plus share in SACCS with $20 million going to them and not just $10 million).****