I do agree that the share price says these announcements were considered, to Date, as neutral at best, Just shows that market has problems understanding these transactions and ASX rules actually prevent proper explanation of the significance of the transaction. Or indeed that the writer has not alluded to the full potential of the transaction.
Tony, maybe consult with your mate to explain which one of these announcements was not positive and deserving of a share Price Increase?
In reverse order:
1) Barging and sales of first coal delivered.
2) More sales and Income
3) Clarification of customers requested by ASX. Very odd
4) More sales and income
5) Mining fleets increased by 150% 2 to 5 units. Plus more sales and income.
6) More barging, sales and income
7) Ramp up of production
8) Massive Infrastructure Joint venture with AUD$9 billion company (Petrindo) that needs us more than we need them
9) Quarterly report showing income
10) Trading Halt
11) Surprise replacement of 3rd Tier Miner with huge coal miner & mining contractor, Petrosea, controlled by Petrindo with cash inflow
12) Trading halt
13) Monday: Massive agreement with underground miner that adds 70 to 80 million tonnes of JORC Reserves Estimate. Using Rule of Thumb estimate of converting 220 million tonnes of JORC Resources Estimate to JORC Reserves Estimate. Could be a lot higher tonnage or indeed a lot lower. All in my opinion.
Monday announcement let us say it increases JORC Reserves to 70 million tonnes. A purchaser would (IMO) pay greater than US$5 per reserve tonne especially one with logistics infrastructure in place. Much more in my opinion, 70 million x 5 = US$ 350 million to BBM, Cokal share: US$210 million. Or
AUD$ 318 million to Cokal!!!!! And we would still have the BBM opencut, the West BBM super PCI (anthracite) and the very high potential TBAR.ALL IN MY OPINION BASED ON SIMILAR RESERVES PURCHASES IN INDONESIA OF THERMAL COAL MINES AT VERY MUCH LOWER THERMAL COAL PRICE IN YEARS GONE BY.
PLEASE DO YOUR OWN RESEARCH.
