coal prices surged again this week.., page-5

$50 if they can hang out for two years. With the likes of BHP looking for BIG projects, I don't think they'll ignore this. With probably 10 billion tonne of coal in a few years, this is too big to ignore. The world's largest and 6th largest steel producers appear to be very interested and are absolutely desperate for coking coal. South Africa and other local nations are desperate for the thermal power. Further afield we have a city of 4 million people in China with no power for 10 days due in part to not enough coal, forcing the govt to stop exports.
When the world's largest resource and steel companies are looking at the situation around the globe they cannot ignore 10 billion tonne.
At $1/tonne for 10 billion tonne you'd get a $10 bill or $55 /share. Using $1 /tonne is ridiculously conservative, but using 10 billion tonne of coal is jumping the gun a bit so I think they even out at this stage.