Going back to the Anglo American days;
Firstly during its first couple of years the Mine had 60,000,000 shares on issue , it also had a workforce of over 700 people. At its peak it traded well over $400 SP
Whilst people can say it had a very low shares on issue , what is much more relevant from then to now is, Prices for Thermal Coal have dramatically increased, production estimation costs have Dramatically decreased, also during those early years the Company Anglo were mainly in Development stage, this makes it considerably less likely to achieve High Tonnages , also during its early life the Mine was hampered by Spontaneous Combustion Problems , and Water Problems, add to this a lot of departmental restrictions and so on.
The Washery was not running at fully capacity and also had some design problems, a lot of time was lost during the first 4 years of production due to down time and safety issues.
So realistically the SOI had little to do with the high SP, what was and still is relevant to a high SP is that 80% is owned by institutional investors, who are their for the Dividend.
Compare this to now , lower numbers for workforce 720 at the time 250 now, a Mine that has done most of the development works , has remedied most if not all of the issues from back then , much higher Coal Prices with a lower number workforce will certainly enhance the SP value, also Dividend achievement will greatly assist in a higher SP the New BOD are very experienced Mining Personal I personally think this Company is in very good hands to return huge shareholder Value.
Add to this a second continuous miner and extended ML till 33. IMO if smooth transition to mining even the unwashed coal will provide a good revenue.
Thanks to Mike Ryan who was tasked with the job of care and Maintenance along with Engineering and structural changes to the Mine , I think we are in a much stronger position now , then what we were 18 years ago.
This is not financial advice , this is an opinion based solely on fundamentals and past market Technicals. My target $1 SP
GLAH
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