With $0.11 per share in cash, the market is valuing MTE's entire coal portfolio and interests in port capacity at only a little over $0.30, or about $63 million.
That's 1,800 Mt in Bundi (production 2016f) plus 650 Mt (MTE's share) in Columboola (production 2017f) plus another 700 Mt elsewhere (no est date for production)
If you assume no value for "elsewhere" and no value for interests in port capacity, that's a valuation of about 2.5 cents per tonne of coal.
BND, GUF, SMR and EOC are roughly 10 to 25 cents per tonne.
The JV in Columboola is good because it means that MTE already has a partner there. And having Dadi with 20% holdings is another good sign of a tie-up with a firm with strong expertise in coal mining. So the relationships that MTE have are very encouraging.
Seems to me that MTE is very, very low...
MTE Price at posting:
42.0¢ Sentiment: LT Buy Disclosure: Held
