G'day Nick,I have had a looked at Carabella a few times. I think...

G'day Nick,

I have had a looked at Carabella a few times. I think it is a bit over priced.

If you look at their presentations you will see they have a high ash coal ~30% raw. You will also notice the bullseyes for seam thickness and quality.

This varibility is hard to deal with as a longwall needs to be set up to cut a specific height range so some areas look a bit thin and others a bit thick to cut efficiently with one wall.

Coal quality variability as I have discussed here is also hard to deal with as you find it hard to keep a steady density that does not throw away product but also keeps you within your product specs.

Their top of coal surface also does not look as flat as you would like it. High productivity longwalls need good ground to work in.

While they can work around these things... they all detract from the resource. Varibale recources also need alot of drilling to pin them down effectively.

They may well have a longwall mine at Moranbah. But it is marginal at this stage until they answer a few more questions. With more drilling the outlook could change either way.

Monto tenements could be alright for them.

Hard to judge their clarence moreton and eromanga tenements at this stage. Bluff is unlikely to be any good.

Gaz