based on the announcement at the end of June, Coal Fe is...

based on the announcement at the end of June, Coal Fe is significantly undervalued.

Announcement says will do 170,000 tonnes per month
so 2,040,000 total tonnes for the year

Assume US profit at $10/ton 20,400,000

A$ profit at 80c conversion. 25,500,000

Use debt / con notes as announced (A$) 43,750,000

Interest on debt at 8% (A$) 3,500,000

profit after interest is (A$) 22,000,000

less tax (30%) 6,600,000

NPAT (A$) 15,400,000

shares issue under acquisition 36,000,000
shares on issue prior 71,684,253
total shares on issue 107,684,253

EPS 0.143010696

P/e of 10 x (other coal miners trade on 16x) 10

Share price is $1.43