news flow, page-22

Here is a link to the document:
https://secure.psl.com.au/publications/resources-reviews

Its obviously the one dated today.

This is an extract from the report...Market cap is wrong, again!


The Producer standouts

Cockatoo Coal (COK) $114m in cash ? BUY. COK production is finally returning to normal after
the last wet season. It has sold 49% of the Woori project to Mitsui consolidating the Collingwood,
Taroom and Woori coal projects into one joint venture. COK has increased its resources, increasing its
attractiveness on an EV/t comparison and resolved any potential cash issues due to the floods and lost
sales. Significantly, with Peabody stalking MCC again, COK will be one of the very few listed PCI
producers. It is planning to sell the Taabinga project which will add to its $12m in cash reported on
30-Jun and has since been supplemented by a $37m asset sale and a $65m debt facility.

Continental Coal (CCC) $12m in cash ? Not Covered. CCC is producing ROM from two open cut
mines, Ferreira and Vlakvarkfontein, in the South African Witbank Coalfield east of Johannesburg. It
currently sells coal from these operations to the state utility Eskom and the French utility EDF under
an offtake agreement. CCC has a number of development and exploration projects in South Africa and
it is exploring for thermal coal deposits in Botswana. CCC?s market cap is only $72m and it has
defined 64Mt of reserves, implying it trades at only $1.13/t of reserves compared to the average $5/t.

New Hope Coal (NHC) $1.5b in cash ? HOLD. New Hope is the safety play for those concerned
about market volatility. It has a good operation at New Acland, owns its own port, is sitting on $1.5b
in cash, and pays a reasonable dividend. NHC is probably the most defensive stock in the sector.