cs warrants

Thx for insights gents and I learnt same this week re CS

The muppet Warwick Grigor at Cannacord has also published a snide comment on ATU over the past week or 2 in his investment commentary letter...what most dont know is Grigor obviously is close to Jameson Resources (JAL-ASX...Cannacord have just started analyst coverage - see Jameson website) and therefore has a vested interested in promoting Jameson given they are likely going to need a capital raise soon on their current burn rate and funnily enough Cannacord want to win the fee!...mutton dressed as lamb given Jameson's published resources v ATU IMO

Regardless of derivative trades around ATU, it still does not detract from the fact that Atrum shareholders sit on a fantastic asset controlled by first class management with potential $100+ EBIT margins IMO, and the company could be producing much faster than many imagine.

ATU management have already well flagged their intention not to dilute and back ATU with their own capital ie partly paids to be paid up to the tune of $7m+ from Directors james Chisholm and Russell Moran.

That should fully fund ATU through infill drill program to realise sizable 'measured' resource upgrade by mid year based on company anncs, and complete PFS.

If ATU were to bring online an initial 1 million p.a. production pipeline, which they could possibly do via road in the short term rather than rail, that equates to $100m EBIT p.a. ... again management has flagged their intention to start small with low capex and I surmise the options around debt financing are plentiful given ATU's groundhog asset

BTW if anyone thinks Chinese demand for high grade met coal is diminishing anytime soon consider Chinese GDP numbers at absolute levels form say 5-10 years ago...also see here...

http://sg.finance.yahoo.com/news/china-coal-imports-seen-nearly-032048039.html


At 60c the fully diluted EV of ATU sits at $82m

IMO its the cheapest upcoming coal producer listed on the ASX and if an investor has a 12 mth horizon they will be well rewarded