so a very good June qtr and still no interest in Stanmore - whats not to like, $27M cash in hand.
Lets look at Sept qtr based on the SMR presentation
say avg cost is $120/t (they say FY18 will average $100 so i am just down a bit on Jun qtr actual)
know the semi coking price is usd$126/t and thermal coal usd$80/t- even at current exchange rate of say 0.79 this is $159/t and $101/t respectively.
Assume 300,000t for the qtr with 225kt semi coking and 75kt thermal this will provide positive cash of around $7.3M for the qtr , or $24/t ($8.775M for the semi coking, loss of $1.425m on the thermal)
If costs can be cut by $5/t that another $1.5m.
Even if they only get costs to $110/t and average $20/t margin for the year on1.2Mt thats $24M cashflow or over 10c/share - surely SMR is worth at least 6x that with the lower cost Isaac Plains East project to take over as soon as they can get approvals.
Just my musings based on the information provided - hope others start to take more interest in this good thing. DYOR please
SMR Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
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