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30/04/09
12:21
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This company has just announced a 1.2 billion tonne JORC for steam coal but is raising capital at the same time.
I think this will bounce very hard once the capital raising is finished.
Currently, shareholders with entitlements are probably selling stock to exchange them for 1 share and two options for 10 cents.
I think the capital raising should raise between $2.5M to $3M.
Shares on issue should be around 120M and options 60M
That is 7 tonnes of coal per share.
Market cap at 25 cents fully diluted will be $45M or 4 cents a tonne of coal.
Coal is however in central QLD, with no railway. But resource should reach 2 billions tonnes, low cost mining.
Gina Reinhart has coal in the area and is pushing for railway development.
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