80 cents by december...., page-16

Perhaps a simplistic approach to valuing mnm could be.

Production from the plant 12,000,000 tons per annum.Mantles share 6,000,000 tons, say a very conservative sale price of $80 per ton of coal,break even costs $55 per ton,gives $25 profit per ton multiplied by Mantles 6,000,000 tons, equates to $150,000,000 earnings per annum.

Divided by shares on issue say 200,000,0000 gives earnings per share of $0.75 multply this by the average price earnings ratio of all shares on the ASX of 14.39 gives a share price of $10.79.
This would give Mantel a market capitalisation 2.16 billion dollars.

A comparision to Coal and Allied with a market capitisation 11.25 billion and average earnings per share over the last 2 years of $5.48 with 87 million shares on issue. The average earnings for the last 2 years $476,000,000 per year divided by Mantles $150,000,000 per year projected earnings,gives 3.17 divide this into the market capitalisation of Coal and Allied of 11,250,000,000 and you come up with a comparative market capitalisation for Mantle of 3.54 billion.

These two scenarios are very simplistic as there are many variables such the performance of the plant in producing the tonnage per annum, the sale price of the coal, the number of Mantle shares on issue,the general market sentiment and the state of the global economy.

As always do your own research my posts are for entertainment and stimulation