Austral Coal, page-3

On 15 May Austral's chairman reiterated the company's forecast of 2002 earnings of $13m after tax. A p/e of 15 would value AUO at $195m. However, p/e ratios are normally based upon pre tax earnings. Therefore AUO should have a cap of perhaps $250m based upon current earnings. With 150m shares on issue a fair valuation would be $1.50-1.75 in my opinion.

Also, Tahmoor North is expected to double production in the medium term. At current coal prices-$3 in 2 years?

I hold from the recent rights issue and obviously feel that 60c is beyond a joke!

cosmos