TauriskSome figures posted by T4P some time ago:INR...Current...

Taurisk

Some figures posted by T4P some time ago:

INR...
Current market cap (55.5c)= $274m
Reserves = 35mt (proved & probable)
Resource = 324mt (inferred)
Current production = 0.5mtpa
Projected production = 4mtpa (by 2010)

GUJ...
Current market cap (33c) = $125m (fully diluted)
Reserves = 125mt (proved & probable)
Resource = 241mt (inferred)
Current production = 0.5mtpa ??
Projected production = 4mtpa (by 2009?)

Combine the two entities & you arrive at quite a sizable coal mining company with an inferred resource of over 500mt

Putting that into perspective, GUJ alone, was flagging a potential earns of about $300M per annum from the 2 mines by 2009 .... with a minelife for the next 20 years or so. Then add IRN 's No.1 Colliery, and we have a coal producer of some significance.


Dont be put off by what the "majors" give away ... some examples:

Rio sold Sepon to OXR ... "too small" for them
Newmont sold Golden Grove to OXR ... reserves were running down ..... Look at OXR now.

Then a classic comparison is BHP selling their coal mine in South Africa to RIV

Just some history on RIV ... they where basically a shell that refloated at 20 cents & purchased the South African Coal project off BHP ... BHP had mined the reserves & it no longer fit their profile ... 12 months AFTER the purchase RIV was able to confirm a coal resource of only 20mt.

Have a look at RIV today ... $4.00 SP ..... They have since got involved in a large exploration coal play in Mozambique ... but all this from an old "give away" by BHP

Dont worry, the combined entity will be more liquid and a very sound investment ... medium term!

Short-term, next few months, it will probably be fairly stagnant, albeit fairly safe!

cheers