Finally bought some near the end of close yesterday. Been sitting on the sideline for the past few days researching the company. It's difficult to fathom how much value's been lost within the year.
Conservatively, with around $150 million in cash, the enterprise value is around $75m. So the market is saying all its North American projects (including its agreement with Peabody), its South Australian Coal Deposit with JORC compliant 684million tonnes of coal, potential JV within China, Mongolia and South Africa is worth a measly $75-80m? Surely if the Bayan project is terminated there is some value there such as scraping the baghouses, the power station etc. This does not even take account of the potential to find another partner(s) within Indonesia and not to mention the calibre of the management team should be worth some value given there success with Felix resources.
Even the article out today on SMH has indicated that John Kinghorn, the non-executive who spent over $19million to become a significant holder of the company a few months back "plans to concentrate on other business interests, including coal". One man's rubbish is another man's treasure and hopefully it will be more treasure.
