This is great time to buy this company before it gets re-rated....

This is great time to buy this company before it gets re-rated.

First of all it is about to kick off a drilling campaign that will last to the end of the year. No problems with grants, drill rig or labour as evidenced by its recent drill rig announcements. JORC resources should result from the drilling by early next year.

Second, targets are big. They have farmed out two of the three prospects to be drilled, keeping 10-15% ownership. The two prospects farmed out are at an early stage with deep targets and less existing infrastructure. Was a good move i believe as these targets require a lot of development and costly infrastructure which BWN could not afford by itself. The project it kept (1045) 100% ownership in is more advanced and close to existing mines. Depths of coal are also less on the lease. Seems from previous drilling on adjacent lease (RCI 60% ownership, BWN 40%) that coal is guaranteed to be present. Hence we will receive news of hits in May sometime. Quality is good making the resource very mineable.

Third, it has the cash to drill the holes to mid year where then it will raise funds via Bushan as stated in last announcement. No need to hit small shareholders which is good as it would be very hard to raise much funds in the current market. Very little dilution of the share price will occur to JORC resources announced early net year. Perhaps a 3-4 million raise would be enough.

Four, it has announced a MOU with an Indonesian company on a coal property. If the property is granted, (no reason to think it wouldn't) then BWN will have a 50% ownership of lease with potential resource of 200mt of good quality thermal coal. ( A realisitic expectation considering the other resources in that area). Not enough info is known whether coal is there or not but an announcement stating potential may see a bit of a surge in the price.

Five, broker presentations will occur in March, creating interest in the share

Six, coal prices are going up and up. It is expected big coal price increases will occur in April.

Of course there is risk, no coal is found (not likely based past drill holes), cash will be required (Bushan or Indonesian partner will likely take up holding to 19.99% limit), Indonesian permit not granted.

Upside is huge, downside minimal, no drill delays will occur from the end of this month (providing it stays dry in QLD), this is the type of spec company to be in when uncertain times are upon. Price of BWN has gone up this year 20% when markets have gone down 20%. Tightly held and people do not want to sell, signifies strong uptrend.

All this signifies that this is a great time to buy BWN before drilling starts and people wake up to this bargain.