I was just reading an acticle about adani and their purchase of a large coal resource from LNC about a year ago for 3 Billion equivalent...This was a huge resource of thermal coal of relatively poor grade....
http://news.theage.com.au/breaking-news-business/adani-to-mine-low-quality-coal-analyst-20120214-1t3uu.html
Every day we see news articles saying the demand for coal is growing, the coal prices have already started to reflect the demand surge the last few years,,,will it continue,,,IMO yes
Asian countries continue to grow,develop and their coal needs are expected to grow for many years to come...
WHAT ABOUT BM EXERGEN JV
Not many realize the actual numbers here
-Exergen are planning for 12 MTPA by 2014
-I am not sure the costs/coal prices in 2014 but lets assume we will make $70 a MT profit (very conservative IMO)
12 000 000MT X 70 = 840 000 000 per year.....
Now I realize this is an estimate BUT you can see the types of COIN we are talking about....IMO JV will go through soon...
Most small Caps struggle to get financing even if they have a positive DFS,good resource,,,,We will have plenty finance from the Exergen shareholders so that's a big hurdle already JUMPED IMO....
Even if MNM get a 20% steak in a project with this type of earning potential we will be trading at many many multiples of current MC IMO....
This is only one of the reason I hold BUT its a big one...
dyor
(these numbers are just estimates in making my point)
Add to My Watchlist
What is My Watchlist?