acquiring mashala, page-39

so just to put this in perspective just a few short weeks ago conti were not producing anything and had no sales agreements officially in place.

Correct me if I'm wrong please but when this deal goes through they will be producing around 3.5mt per year (mainly export quality) from the Mashala stable (from a basic addition here> plus about 600,000 t/y from Vlakvarfortein.

As Vlakvarfortein ramps up this year and ProjectX comes on line they should be up to production rates of around 6mt per year. All this within a 6 month period from nothing.

This is not accounting for anything else that may come online from Mashala and the production ramp up scheduled on conti's assets in 2011. Plus any additional acquisitions of course.

I'm thinking Andrew is spot on - soon conti should be valued on an earnings and p/e basis rather than just on an in-ground basis.