Riversdale is sitting on the largest, high-quality coal resource on the ASX
First of all, the size of the total resource makes Riversdale?s the biggest coal resource figure on the ASX by a mile. What is important too is that the majority of Riversdale?s coal resource is the type of coal that we are interested in: hard coking coal. In a sense, this is like saying the resource has a very high ore grade.
Another important point is that Riversdale?s main project is strategically located. Mozambique is a coastal country on the East coast of Southern Africa, meaning it has good shipping access to the growing markets for coking coal in India and Brazil.
?Benga? project. This is a 4,024 million tonne coal resource located in this exciting location. The plan is to produce 6.2 million tonnes of coking coal, and 3.8 million tonnes of thermal coal a year from Benga by 2016, making it a globally significant producer. Having the cash to pursue development de-risks the project a great deal.
At these current proposed mining rates for the Benga project, this resource on its own would last 201 years! Make no mistake. This will be a globally significant source of coking coal for years to come, and is bigger than anything else due to come on line in the next five years.
Riversdale also has a 1,700 million tonne indicated resource in its ?Zambeze? project. This is in its early stages of exploration, but there is potential for this to have a similar production profile to Benga. Considering these two projects together, we are looking at a massive 5,700 million tonnes. The company also has 2500 square kilometres of tenements to explore. This massive resource could easily get bigger still.
RTL Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held