rey - ready to roar, page-14

Ok here is my take on things and it’s a simple one.

REY has a resource which has a significant chance of being proven up above 1 billion tonnes.

From an earlier post of mine

JORC 511million tonnes and counting
Half the distance to india than the eastern ports
Low capex to get things started at 2mt pa
Tug of war between big boys wrestling for control
Discussions with Chineese and Indian strategic partners
Likely ramp up to 20mt pa very feasible
Thermal coal prices on the rise
Market cap currently valuing the in ground resource at 12c per tonne
No upside built into the already extremely low market cap

So even on historical transactional valuations on thermal coal in ground of 50c with a 50% discount (very conservative ) we get a sp of 45c double the current sp.

It is clear that it wont take much at all to get this off and running with blue sky potential as the JORC is upgraded and it gets closer to production.

$1 plus is extremely realistic in the short term.

This is a spec play but with capped downside risk at 19.5c

Forget the ticks here and there this could be a life changer in time

O