Just compare to CZA to see where we could be. They are clearly more advanced with their development side of things and to me UNV is about 3 years behind where CZA are, but are closing that gap.
I can't remember which one it is but CZA are ramping up to either 3mtpa or 4mtpa. They have more coking coal assets for sure and have proven these up unlike UNV, but just as an identifier as to where we could go, they are valued at just short of $800m, UNV are valued at $84m. Theres plenty of upside here, as things develop.
I expect Berenice to be upgraded soon. Theres just so much coking coal in that area (Chapudi = 1bt, Makhado = 1bt) that the small sum currently assigned will surely rise. Also, as UNV are somewhat behind the curve on the Soutpansberg field, it could be that CZA develop the infrastructure and UNV can leverage off that.
Disclosure - I have long positions in both companies.
UNV Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held
