Ann: Half Year Results and Investor Presentation, page-7

So about a 26 year mine life @ current rates of production on reserves and assuming ~60% of resources eventually convert to reserves another 180 years. 200 + year mine life or potential for considerable production expansion.

Current profits of USD468 per annum (2 months @ USD78M*6) = ~AUD670M @ 0.70 USD:AUD. PE of 3:1 @ AUD2B Mkt Cap

Assume profits going forward down bit on some met coal price weakness at say AUD400M per annum (40% decline) still a PE of 5:1

Compared to other coalers (thermal + met pulled from yahoo finance) PEs:

Peabody 3.65
Coal India: 7.87
BRL: 2.79
NHC: 8.46
YAL: 8.7
WHC: 9.2 (from last reported Fin results)
TER: 27.33
SMR: 3:1 (from last 2 months performance)


SMR despite the high royalty regime stacks up pretty well (back of the envelope) on a current and forward PE basis- Potential to double price comfortably.

Divvy machine next year:
901 M Shares on issue EPS of $0.44 maybe a $0.20-$0.25 PS divvy realistic. 10% @ current price.