From COK announcement of March 2, 2011 Note: MCC currently being taken over ----------------------------------------------------------- MCC the other Australian specialist ULV PCI producer MCC capitalised at ~$A950m/ 1 Mtpa production ? = $A2.67 Bn Market value on 2.8Mtpa COK equity production. COK Bowen Mine Capex = $A280M ? 50:50 debt/equity to reach 2.8Mtpa equity output COK Equity contribution = $A140m COK Issued Capital = 1.016Bn If one assumed for eg. Bowen mine capex issue = $140m @ 50c/sh = 280M shares Sustaining/ contingency capex issue = $60m @ 50c/sh = 120M shares Then COK issuance = 1.416Bn shares @ $A2.67Bn market capitalisation Would suggest ?look through? value = $A0.53/sh $A1.89/sh in 3 yrs + ?free? option on Surat Basin/NSW projects ----------------------------------------------------------- Maybe they are working on Korean equity contribution instead of capital raising for development. $1.89 in three years time looks good to me!
COK Price at posting:
42.5¢ Sentiment: Buy Disclosure: Held
