Hotrock1thanks for taking the time to post here - I think you...

Hotrock1

thanks for taking the time to post here - I think you may have mistaken me for 5hareholder, as I have never posted on the EGO threads, and know precious little about EGO, apart from the fact that they have more shares than CCC, the SP went ballistic recently, and this appears to have made you and others a lot of money. Congrats on that one.

It's getting a bit late in the evening for me to have to rehash all the arguments why CCC is fundamentally undervalued. But here goes:

Three professional research organisations/brokers in OPLC, Edison Investment Research and GMP Securities have conservative valuations or ST price targets of 13c, 14c and 12c respectively. Dr Alex Cowie says CCC is currently a buy up to 15c. 5hareholder's top rated post today gives a good wrap of the outlook for the next 2 years.

There is an overwhelming amount of bullish sentiment out there to indicate spot thermal coal prices are staying well above $100 for a while now. Current negotiations between XStrata and Japanese power utilities suggests that the 2011-2012 contract rate may be settled at between $125 - $145. Transnet, Eskom and RBCT are investing heavily in improving rail, power & port infrastructure in SA - this investment augers well for CCC long term. Then we have projected massive shortfalls in power coal supplies for India in 2011 & the immediate future (see articles on http://conticoalers.com/). Over 30% of coal from RBCT went to India last year, and this figure looks set to increase in 2011. With SAs entry into the BRICS, and talk of new trade deals between SA & India - one can only assume that trade levels between these countries is going to increase. Also, Coal of India has currently raised domestic grade A coal (equivalent to API4 RB coal) prices by up to 100% - which will surely make RB coal more competitive.

Then we have Botswana coal resources. CCC has a 6.6bt target in areas of Botswana which have already proven to be more than prospective for export grades of thermal coal. Look at the neighbouring leases & JORC statements/Canadian equivalent standard resources for CIC Energy & Asenjo Energy. There are reported to be Indian groups in discussion with CCC regarding the possibility of partnering in any development of these leases. Currently the market has attributed $0 value to these 3 leases over 960km2. ASX listed African Energy Resources have a market cap of over $300m (vs $238m MC for CCC) - without a JORC statement, without offtake agreements, with predominantly domestic grades of coal, and without access to export infrastructure. Perhaps you'd like to quiz them on their current valuations & prospects?

Hotrock1: "the piddly amount of coal that CCC has is amounting to be a joke" - well if 630mt JORC resources in SA (with 6 drill rigs working since Nov 2010 to upgrade resources ahead of AIM listing & BFS for DeWittekrans in June 2011), the 6.6bt target in Botswana, and other "regional consolidation opportunities" that have been well discussed here (like the strong possibility of a Kenyan coal exploration/development in partnership with Kenyan govt) are piddling then so be it.

As far as the rating of "the market" goes, you more than anyone else should know how badly the market can get it wrong, esp. after looking at EGOs SP go sideways for most of the last 2 years, in spite of your many posts on EGO's excellent fundamentals.