Coal stocks aren't being valued on earnings two/three years from today. Therefore, I can't see how a 10-15c price is achievable in 6-9 months... but... the market can do some funny things. Reading this forum, it looks like a lot of people bought into the hype of Bluff and over estimated the ability of a new player, paid to high a price and now don't want to let it go. I do like this company, but, it's not worth 40c again anytime soon. I'm happy to watch and take my time.
Look again at the numbers in that screen grab I posted above. It uses a PE of 8x... no other coal company trades on such high multiples. Maybe Alpha Metallurgical Resources trades with a five x multiple, but, that's a special case with aggressive buybacks.
@seenitb4 makes a good case with multiples, however, while us$90/t is a reasonable standard to aim for within the industry, its on the low side for BCB. I believe that the company should be able to lower costs, but, there are inherent costs which will make that us$90 cost difficult to achieve, railing, demurrage and port logistics being one of the more difficult challenges. Is that a $34/t railing/port cost? There's no spare capacity on the peak downs rail line and the distal ports are obviously more expensive to use. The challenge of building and retaining a skilled workforce will also be a drag on costs.
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5.6¢ |
Change
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Mkt cap ! $159.4M |
Open | High | Low | Value | Volume |
5.8¢ | 5.9¢ | 5.5¢ | $519.7K | 9.206M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 143881 | 5.5¢ |
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Price($) | Vol. | No. |
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5.7¢ | 50000 | 1 |
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No. | Vol. | Price($) |
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2 | 155000 | 0.054 |
1 | 37735 | 0.053 |
2 | 210000 | 0.051 |
7 | 960000 | 0.050 |
1 | 50000 | 0.049 |
Price($) | Vol. | No. |
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0.057 | 50000 | 1 |
0.058 | 228551 | 1 |
0.062 | 397000 | 3 |
0.064 | 271000 | 3 |
0.065 | 229057 | 5 |
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