nice day today

Nice day today with new highs. Hopefully a few more to come.

Here's my reasons for jumping on BTU.

1. Management are proving themselves, delivering on their promises. Have secured a sensible win-win situation with the purchase of the project that has good payment milestones in place.
2. Will be a 1mtpa producer very shortly (end of 2011) with upside of 2mtpa.
3. Very high quality coal which will fetch a premium and ensure the mine is profitable even with a drop in the coal price.
4. Open cut mine with easy access to transport, which will help keep operating costs low.
5. A sound strategy outlined to market for progressing to production.
6. Have a large backer supporting the project who may potentially be involved with the offtake agreement.
7. Buyers are thinning out moving the price up in the short-term.
8. The soon to be completed DFS and expected offtake agreements in the coming months provide a great opportunity for short/medium term growth.

DYOR with valuations, but 1mtpa operation at current coal prices will give BTU $US185m / annum revenue.