buy rating, page-3

We've seen a lot of broker reports for CCC but still it surprises me each time that they can ignore the real story so blatantly. Here there is ZERO mention of group structure which is the main issue. Particularly the problem upstreaming cash to COOL itself. The valuation seems to make no account for the structure either. I mean Vlakvark NPV $29m! Remember CCL only owns 60% and then CCC 74% of CCL so CCC share is 44%. To get to CCC value of $29m means that a 1m tonne domestic coal operation is worth $65m. Mmmm. A deduction off NPV of corporate costs of $12m. Really! They have said that just at the hold co annual costs are $6m. Similarly the net debt value deducted of $32m is farcical. The Penumbra project debt alone will be $40m. Plus all the other debt and liabilities like the royalty payments that are ignored here.

Surely this is not how markets are supposed to work. More and more brokers reports that don't tell the whole story.