The stock price is recovering strongly, now that the initial...

The stock price is recovering strongly, now that the initial teething problems associated with the new longwall appear to be being overcome.

What I find interesting for we retail investors is that there is only a 2 cent premium for the AUOG convertible notes over the ords. Given the high coupon and the lower risk profile of these notes, I would have thought the premium should be well over 5 cents. Anyway, I've been topping up on my AUO exposure through the notes recently - they went ex about 2 weeks ago.

I have said in this forum many times that this is a very good story, especially with the coking coal price being forecast to remain very strong for the foreseeable future. The only doubt was whether the expected production ramp up would occur - this is now looking very good.

The true value and selling point for me is about $1.30 imho.

Good investing !