is EOC undervalued?assuming 50% SPP take-up, it has 172m shares...

is EOC undervalued?

assuming 50% SPP take-up, it has 172m shares & options on issue, $16m in cash, $9m from options, market cap less cash & options @ 40 cents = $44m. undiluted, market cap = $61m

SYDNEY, June 15
Macarthur's third-quarter PCI coal prices were settled at $230 a tonne, down from $275 a tonne

EOC has its ROCKWOOD JORC due this month for PCI coal. next door to Macarthur coal. forecast 50% yield (sounds conservative). reasonable 12% ash content - slightly high but OK. mid-range 60mt @ 58% recoverable = 35mt saleable

plus EOC have 50mt high quality direct shipping termal coal. open pit (20mt @ 83% recoverable) + (underground 30mt @ 58% recoverable) = 35mt saleable

plus
50:50 JV between Endocoal and Carabella Resources at Pretoria Hill; 100% Endocoal owned Talwoodtenement prospective for the Rugby coking coal measures; and
Talwoodand Pretoria Hill adjoin Carabella?s Mabbin Creek tenement of 91.7Mt JORC resource at Grosvenor West project