Each company is different ,but comparisons can be useful to to obtain ball park figures .There is some subjectivity in many areas ,but I like to look at coal companies that have something in common ,such as a similar production time frame ,similar resources ,or similar potential earning capacities .
There have been some good comparisons with other companies on these threads and CCC compared well in many areas to ASX coal companies in the $800m - $1.2bn market cap range ,in resources ,time frames and potential earnings capacities .
Some of these other companies need lots more funding than CCC to achieve their potential as well .
I would then use a subjective discount for the SA political risk ,possibly back to $500m -$600m mark for CCC .
Thats also without the blue sky of Botswana .
I am of the opinion that a reasonable ball park figure for CCC is currently closer to 20c ,give or take a few cents either side .
My target figures have been posted here long before the latest broker valuations ,and also the D&D valuation .
The coal price is rising strongly as we have a coal supply crunch developing and is expected to stay that way for three years , and possibly leading to "peak coal"
The days of cheap thermal coal look to be finnished for now .
CCC is well leveraged to coal price upside .
CCC Price at posting:
68.0¢ Sentiment: Buy Disclosure: Held
