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26/11/09
16:44
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Big vol today, news can’t seem to come faster enough.
While today hasn’t been a great day in the eyes of ST holders, I think long term we will see real value extracted from their SA coal mine projects.
If they can deliver what they promise, then just one mine alone will deliver us a P/E of 5 (before dilution of course).
2010:
50kt for H1 then 150kt for H2 = 1.2mt pa.
Margin: $8 a tonne.
Profit: 1.2*8 = $9.6m
2011:
150ktpm = 1.8mt pa
Margin: $8 a tonne.
Profit: 1.8*8 = $14.4m
They stated that in 2010 a further 3 mines may go into production so 2011 could be a lot higher (but then again management never delivers on time).
GL, still holding,
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