Short Term Trading Week Starting: 19 Sept, page-92

BRL: Break-out. I think Strauss or someone else was first one to mention about BRL. I am tempted to put in a tip but to take credits from them is not the right thing to do.

So, just to recap what BRL is about: its market cap is about $35m, FY17 EBITDA target is $13m and that is only based on 330k of thermal coal production.

Its real kicker is its coking coal with the smallest capex that i know from various small cap players within this coking coal space, only $21m to bring 500ktpa of coking coal online (with scope to increase to 750ktpa, refer to quarterly report). And the margin is extremely juicy, BRL indicated cash cost is under NZ$90/tonne, if the indicated contract price is north of US$150/t, gross margin will be over NZ$100 per tonne, multiply that by 500ktpa, we have a gross profit of about $50mln NZD. Gross profit will be higher at 750ktpa, and its coking coking project can run for plus 20 years, not a short life in itself.

An article link posted on BRL's thread stated BRL has spent $300m on its NZ coal projects, they are no greenfield but at very advanced stage already.

So IMHO, BRL is good value under 4c.