What I am trying to do is get some comparative valuations between some of the coalers. Since there is not a lot known about them until they have their BFS I have just done a very quick and nasty valuation based on their reserves and resources.
The following chart shows how the other coalers at their stages of development would be valued in RES's money. Of course it doesn't take into account many things such as distance from power stations, money in the bank, if the secretary is good looking etc.
From the chart very simplistically it looks like RES is currently valued at twice FSE. Possibly a good time to buy FSE. But it is also valued much less than CZA as of course it is much more developed than RES. My gut feeling in this environment is that RES should be around the 12-14c mark which is around 40% of CZA's value.
I think we are going to have a very good week as there has not been much selling pressure compared to the last couple of months.
RES Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
