not checkmate simply check..., page-13

macrae12...

Sweet victory this one however...although as I suggested, we likely have more moves coming.

This is a seriously good pick-up for INR...so it is not inconceivable that on the back of a rising local market, rising Indian market and indeed, rising Metal coal prices, that we see a significant run in INR develop...and of course, resultant rise in GUJ.

On this point...the Indiam market via recent changes to international exchange investent rules by their central bank, we are likely to see the Indian influence take a stornger hold here.

Add local interest in a much stronger...larger...single entity and eventual inclusion in the ASX300, ASX200...then possibly ASX100 in as little as 2 years from now...and the attraction here is obvious.

With the assets combined, we now have a far quicker path to market...and ultimately more robust production model approaching 8mtpa in as little as 2 years...and a rapid path of just 12 months or so to as much as 3mpta.

These are significant numbers...and they are not too far away.

They mentioned a combined entity market cap of some $480m...I suggest this will not be seen for long...if at all...especially given the current market cap, production and coal reserves of their nearest peer...

WHC...
Current market cap ($1.44)= $468m
Reserves = 113mt (proved & probable)
Resource = 512mt (inferred)
Current production = 1.5mtpa
Projected production = 6.9mtps (by 2010)

INR (after GUJ acquisition)...
Current market cap ($0.59)= $480m
Reserves = 160mt (proved & probable)
Resource = 565mt (inferred)
Current production = 1mtpa
Projected production = 8mtps (by 2009)

Clearly the new INR will end up with about 1mtpa more production...and do so about 1 year earlier and at reduced cap ex.

INR (thanks to GUJ) will also have an attactrive metals resource portfolio and indeed additional coal reserves in Tasmania.

Interestingly, of the combined entities coal resources, GUJ appears to be providing the lions shares of the proved and probable with some 125mt out of a total of 160mt total.

Given this is really the main banakable component and when you consider the benefits Elouera brings with existing infrastructure include direct port rail access...I find it odd GUJ could bring so much to a combined entity an yet receive so little of the pie.

GUJ should be taking over INR...not the other way around.

Anyway...its far from over, I just wonder what they might throw up next?

Cheers!