investor roadshow

tony and the boys in oz

couple of takeaways from the new and very detailed presentation

1) make the mkt cap look like a joke, in 20 years of mining ive never seen a more undervalued relative to earnings and peers.....i just cannot believe what i see.

2) incredibly profitable, nice to see some margin analysis and detail.

3) highly leveraged to export prices now NOTE ITS $69 and rising this morning. J111 your calcs are out because you need to multiply ROM by yield (say 70%) gives 650kt saleable (not 900kt) = US$650,000 per/$ rise. at todays prices probably clearing $14m....at $75/t it clears about $20m. and that discrete operation has no debt.

4) 100-200kt coking.....say 150kt to be safe. it will gross about US$22m at US$150/t. probably net about $15-18m.

5) 2017 NPAT with effects of record production at Kangala, NCC phase 1 and then phase 2 (not in june 2016 numbers) should be in order of $35m!!!

6) Debt has been slashed....we hadnt seen anything on this before but debt paydown has been substantial and now at 1.5 x cover is low and needed to maintain a decent WACC.

7) massive coking optionality with mining app already in for 10mtpa

and all this for 13.5 f*ingcents

go figure