Laying the Foundations for Strong Growth:
Continental has laid the foundations and has funding in place for substantial growth and a forecast increase in earnings.
The company has a current run of mine production of 2 million tonnes per annum of thermal coal with sales to the international export and domestic markets.
Continental also has a third coal mine currently under development that is forecast to double export thermal coal sales and group earnings in 2012.
A fourth mine Bankable Feasibility Study has been completed confirming a technically and economically viable operation that is forecast again to again double export thermal coal sales and group earnings in 2013.
This alone has earned Continental a target price of $0.56 per share, well over double the company’s current trading price of $0.18, from a broker.
The investment dealer maintained its ‘buy’ rating on Continental and increased its price target from $0.52 after the company released the preliminary draft Bankable Feasibility Study for its De Wittekrans Coal Project.
When in operation the project is expected to produce over 0.8 million tonnes of export sales, over 1.7 million tonnes of domestic sales, and annual earnings before interest, taxes, depreciation and amortisation in excess of US$50 million.
Continental’s goal is to achieve 7 million tonnes per annum of run of mine coal production in 2013.
Laying the Foundations for Strong Growth:Continental has laid...
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