Target $9.36, page-74

Hi folks

by my calculations, at US$200, WHC at $5 would be on a PE of3. This is at 14m tonnes with the Aussie dollar at 75 US cents and all in costs per tonne of $86. NPAT would be $1.764b for a year.

At this point in the cycle it would be a brave man to bet against US$200 not being the new base price.

So, if US200 is the new base, a PE of 6 would see WHC at $10.

If we get US$ 250 for the medium term, the NPAT would be approx $2.59b and a share price of $5 would see the PE at 2.

These are very high level estimates, but you can see how a $10 share price could easily be reached

PS. The 3 major US coal producer share prices are up around 900% to 1000% in the last 12 months (Peabody etc) (yes, 9 times from a very low base). At $4.57 WHC is up only 180%. All had very similar backdrops, high debt, near death experiences etc.

So, $10 is not a big stretch. In fact if geopolitics remain as is, then you could almost guarantee it.

Fingers crossed.