tony and the boys in oz couple of takeaways from the new and...

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