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08/12/10
17:05
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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
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