how cheap is ord.

lets forget the LAOS project which in itself is a company making project after the PFS is completed and resource increased.

lets forget the recent JV which will see ORD pocket 3 million and Gram stump up 10 million for drilling copper Flats next year.

Today Japan's Itochu Corp stumped up $345 million for a %15 stake in the Maules Creek coal project from Ashton Resources .

http://www.theaustralian.com.au/business/city-beat/aston-confirms-345m-japanese-deal-for-coal-project/story-fn4xq4cj-1225967491277

It contains JORC Coal Reserves of 356 Mt with a mix of semi soft coking and thermal coal.

Ashton is aiming at 10.5 million tonnes from 2015.

now lets get this right if I may.

CCD is currently producing about 800t of coking and thermal coal.

CCD will be producing 5mpta by 2013-2014

CCD have a jorc resource from two deposits that is on par and even better than Ashton Resources.

CCD is 70% semi soft coking and 30% thermal

Itocho are paying $345 million for 15%, Ord is paying $40 million for 10%

although Ashton will be producing double the amount of coal than CCD.

If my numbers are correct.

Itochu Corp paid $346 million for 15%

Lets take away the 5% which leaves us with a purchase price of $328 million

So now Itochu Corp and ORD have 10% equity in their respective projects.

Since Ashton will produce double the amount of coal than CCD, we will divide the $328 million divide by two = $164 million

So now Itochu Corp and ORD have a 10% stake in a project that will produce the same amount of coal 5 mtpa.

Give CCD a few extra credits($$$$) since they are already producing circa 800 tpa.

If my eyes are not deceiving me ORD are paying $40 million for an asset that today was valued at $164 million in a similar transaction.

It doesn't matter which way you look at it, Laos, Copper Flats JV, and Coal deal.

ORD is damn damn cheap....

regards