sleeper ??

Aviva announced Coal Resource Grades at CentralWest last week in total approximating 80 million tonne.

Now while there is pits / treatment plants etc to fund and it will be along way before any sales etc , but I thought I'd run some numbers , as they look very interesting.

My understanding is that the value of Coking Coal is currently US$95 per tonne approx.

Lets say long term it may average USD60/mt.

Lets also use an ingound value of 10% of sales price.

Therefore A$8.50 per metric tonne.

80,000,000mt x $8.50 = A$680,000,000

AVA have 240m shares on issue at present .... so the deal may be worth $2.80 per share to them , or about $2.00 per share fully diluted allowing for the 10c oppies (Dec 05)

AVA trade at about 3.5c !

Comments please.

I hold.

SALTY