If Rey does not get taken out it will become a cash giant in...

If Rey does not get taken out it will become a cash giant in Coal production in OZ.

MACARTHUR Coal has a market cap of 2.5 billion and released the following profit this half year.

MACARTHUR Coal expects its profit for the first half of fiscal 2010 to be down sharply on year to between $30 million and $38 million.

Macarthur Coal chief executive Nicole Hollows said that, while the company's mines are now back to full production, there remains uncertainty about the level of sales for the second half of fiscal 2010 due to infrastructure bottlenecks and the forthcoming wet season.

Rey will have no such issues with bottlenecks as they will be the sole company trucking coal to Derby or Point Torment.

India or China will have coal delivered on time and no delays.

At 2mtpa expected net profit should come in at $60 million per annum at current thermal coal price $76.
At 20mtpa net profit should be around 600-700 million.

Rey's share price is absurd at the moment.

regards