where to from here, page-2

For those thinking benny has let a good takeover get away ... here's a different view

$25m peak profit p.a.
last qtr $2.5m profit => $10m p.a.
when input coking coal prices were high and with the coke production business in oversupply, so squeezed margins

but china is by decree shutting down coking plants with < 4.3m size ovens or 3.2m with side tamping. RCI is OK with 3.2m side tamping. So things will get better with consolidation.

RCI also have $26m cash

At 24 cps the market cap is $84m
less 26m cash gives $58m value on the going concern
=> a P/E of 5.8 given the last quarter reported profit

the coal tenements are a bonus and no way Benny wants to give away his company at the bargain price the take-over was offered at

at 24cps they are maybe half where they should be on current depressed profitability for the coking operation alone

and then there is the indian project, the coking plant upgrade from 500t to 1,300 t p.a. already approved by the govt and, of course, the aussie coal tenements, which their indian partner is very keen to help them develop

Meiji aint getting their hands on this