3 year outlook?, page-9

Hi Guys,

Really I would say it is difficult to tell.

I don't know if I agree that there will be no capital raising. If you listen to the AGM that Mihal so wonderfully shared with us all, you will hear a definite pause when PL was asked about this. Not to say that there definitely will be, but the Capex for fully developing DWitt alone is well over 100mill. I am sure management would prefer to fund this with debt, but you never know how available debt financing will be at the time. Having the likes of JP Morgan, EDF and Kores on board will certainly help and I think there will definitely be finance available, but it is likely they will tap equity markets IMO. Hopefully the MCap is alot higher when they do, that is all I say.

I regards to coal prices very very likely they will head north from here IMO. China, Japan and India are falling over each other head first to secure coal, and this situation is not likely to change in the foreseeable future.

I agree that a T/O is a distinct possibility, but don't forget the Don Turvey has been in this game for 25 years and it seems like he is quite keen on building a coal empire by the looks, so not so sure it will be an easy take over. I have a hunch that this management team have been planning this move for a long time. They know the area like the back of their hand, will know where the real value opportunities in Africa are right now and they know the time for coal is upon us.

I think they want to build a major coal force in the African Continent ("Conti Coal" perhaps that is a fitting name) and if I am correct, there will more major surprises coming. If this is the case, we are looking at another major resource company like FMG I reckon, and believe me, I don't take that comment lightly. I don't there are more than a handful small caps on the ASX that one could honestly say are looking the goods to go that big at this stage in their development.

Why CCC? Because if you watch the story carefully, the management are assembling a "monster" portfolio of coal assets. This is not a one trick pony, and I think they have this game worked out more than we all know (and the current broker reports are able to tell us yet by virtue of the way that they arrive at values - the practice of not valuing assets or projects where the future situation is not clear enough i.e. Botswana, where a 2-6 billion tonne resource would add over 1 billion to the value and at current capital structure another 25c+ per share)

$2 (of course with no consolidation) in three years?? Possibly, but I think that is in all honesty a stretch IMO - I don't know if I can see that happening. If they were to drive it that fast (we are talking about an $8 billion dollar company) there would have to be more Marshala's and alot more capital raising's. In fact I think that trying to drive CCC that big that fast would involve significant risks, it would involve very un-natural growth with significant debt.

I would be very very happy with 50-$1c in three years and I do think that is not out of the question.