News: SMR Stanmore Resources Conducts Equity Raising To Fund Acquisition Of BHP's 80% Stake In BHP..., page-5

Just did some numbers and I think Stanmore's high debt to equity is a blessing in disguise. With just A$1b of equity market cap, the company is basically expected to generate free cash flow equivalent to its current market cap in less than a year if coal price stays around the current level of US$400. This puts it under a PE of 1, for a tier-one asset from BHP. Management could have raised more equity and taken on less debt but you have to give it to them for their shrewdness in deciding to have less equity funding the acquisition in the current environment.