foster's broking - 50c/t coal valuations

from a Foster Stockbroking note, just in:

Coal consolidation shifts the focus onto explorers with $0.50/t as the floor for M&A.

Consolidation continues across sector: Over the past week we have seen a number of companies make key announcements regarding coal M&A and consolidation in the sector. With Yanzhou coal mulling a reverse takeover in Australia early next year and with $2b earmarked to acquire more assets in Australia and overseas, we highlight some of the explorers/developers in the space that have recently had approaches and or activity in strategic locations.

Minimum $0.50/t achievable for Thermal while Metallurgical warrants a premium: We believe the price being paid to secure assets is at significant premiums to the current sector average EV/Resource of $0.35/t for Thermal and circa $1.00/t for Metallurgical. Our analysis of M&A activity over the past 12 months indicates that a minimum of $0.50/t is achievable for any deal to be warranted.

stocks covered in note: CWK, (SA based) ZYL, EOC

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With current resources of just over 600mt (not including a Botswana JORC resource due early 2012), CCC's SA resources would be valued then at "minimum" ~$300m * 74% = $222m = 55.5c

note: if you contact Foster Stockbroking, I'm sure they'd be happy to send you a copy of the note/update