valuation and reality, page-15

Something else that puts the significance of this deal into perspective is the fact that GCL announced today that they are to pay $269.5 million for a 27.52% interest in the Middlemount JV. On these percentages (27.52) it will give them a current JORC increase of about 16mt and about 1.5 mta in production by 2012 (note they also payed more for a royalty of sales and have options to acquire additional percentages for similar sums)

Conti just payed about $57m for resources producing 680,000 t/a now plus a resource base of 413 mt

http://www.bloomberg.com/news/2010-08-03/gloucester-coall-to-buy-noble-group-interest-in-middlemount-raise-funds.html

Middlemount JV
Mining lease granted in September 2009
Stage 1 production of 1.8Mtpa (gross) ROM coal is expected to commence in FY20127
Stage 2 approval for 5.05.4 Mtpa (gross) ROM coal production capacity is expected in the
second half of CY20128
Published JORC reserves of 57.0Mt, with further drilling work underway
Targeted product mix of c.70% semi-hard coking coal and c.30% LV PCI, at a yield of c.78%9
Construction underway - CHPP to be completed during the year ending June 2011
Gross capex of c.A$200 million has been spent to date on the project and a further A$200
million of development capex expected to be spent between now and June 201210
Rail loop is expected to be completed during FY2012, subject to regulatory approvals
Long term take or pay haulage contract with Pacific National for 3Mt from January 2010 and
3Mt port capacity at Abbot Point Coal Terminal