real bargain on this pullback, page-12

Granger

Page 21 of the recent CPL presentation shows a good comparison.

The CPL presentation showed an average developer value of A$1.13 per tonne. The producer average was $2.99 p/tonne.

At the time CPL was trading at around 45c and even then the value on a resource multiple was only 38c/tonne.

Some of the developer companies CPL was compared to are:

RCI: $2.13/tonne
BND: $1.31/tonne
COK: $0.61/tonne

Even if CPL was valued at $0.50/tonne the market cap would be somewhere aroung $200mil on current resource.

The fact that we have a significant resource upgrade due this month means that this is likely to increase even further.

On a resource basis I view this stock as very cheap and this is only based on current resource. Once JORC complete for Coalspur it will be even cheaper.

I believe if CPL can prove up resources to around the 1 bil tonne mark the company will turn a few heads and start to be seen as a major player.

The guys running the show within CPL have been there and done that. They are there to make the company a developer within the medium term.

I am not trying to be a ramper of the stock, but i just call it as i see it. In my view the stock presents an excellent buying opportunity with short/medium term upside, hence why i own it. I am happy to here alternative arguments or suggestions as to why the share price does not reflect my (and others on here) perceived value of the stock.

Bottom line is I see the stock as an absolute steal at these levels...but maybe I am the exception and not the rule.

Happy to here others thoughts.