interim announcement - all good, page-5

Woa this is great news, no further rights issues (I hope) and off-take contract secured for 20 years at Richard Bay Benchmark prices! They will repay this in no time once they get into production.

Negatives:
-80m options between 5 to 10 cents which is awfully cheap, I think after this announcement CCCO will be in the money therefore further cash flow to spend on CAPEX.

Here is my rough optimistic take, probably wrong:

End of 2011:

Total Thermal Export Coal: 3.6mt
Margin: $20p/t
EBT: $72m
Tax: $21.6
Profit: $50.4m
Fully Diluted shares: 1.6B
EPS: 3 cents
PE: x15
Share Price: 47 cents!!! Most analyst looks 12 months ahead so I hope CCC will get re-rated very soon.

IMO I think the margin can be higher, if its $40 then CCC could worth $1 but Im probably dreaming.

CAPEX wont be cheap, but if further coal loans can be achieve CCC will be looking very good.

GL all!