Ann: Quarterly Activities - March 2017, page-2

This is an excellent quarterly & I'm quite surprised that the SP has not already hit 5c+.

The key bits are:

Total Coal at port........................79.1 ton
Mar Coal to port.........................34.6 ton

Mix:

Low CV Thermal..........................42K ton
High CV Thermal.........................20K ton
(average 5.57 & benchmark 6000)
SS Coking.....................................17K ton

Let's suppose that April & early May add 40 K ton at the port

This would give us a total of 119 K ton at port to sell

Lets assume that blending April/early May thermal with that at the port takes to average CV to the
benchmark 6000. As times goes on the thermal grade and the mix of coking coal will improve considerably, IMO.

So:

-23K ton SS Coking coal @ say $130 /ton USD FOB= $2.99 mil USD or $3.96 mil AUD

-96K ton Thermal (average 6000) @ say $70/ton FOB = $6.72 mil USD or $8.9 mil AUD

Guesstimate: Total revenue: $12.86 mil

This is at least $3 mil more than anticipated, IMO.

I'm still 50c/share for this time next year( Mkt Cap $895 mil); otherwise a very cheap buyout, IMO.

PS: Re Trucking:

We have 8 Scania 8x4 rigid tippers (25 ton payload) operating 2 shifts a day and delivering
about 1100 ton a day to the port. Suppose they work 330 days a year on the new 12 month a year road
that would deliver 363 K ton a year to the port. To lift this to the target 600K ton a year the
company can but and kit-up 8 x tip 3 axle dog trailers . This would add another 18 ton per trip
or lift the annual trucking to port to potentially 624K ton a year without running the third shift.
If they ran the 3rd shift, this would lift tons to port a year to 936K ton ( a whisker off the million...eh!)

The company could have bought 5 x side tipper road trains doubles
( 50 ton payload) for about the same price and saved on fuel & drivers wages but I guess winter roads
can be dicey with roadtrains. MM