performance

Its been an interesting week so far reading the postings on here and I can understand the anguish many of you are feeling I for one have felt it myself being heavy into CDS, watching the price go from close on Friday 1st August 23,22.5,19.5,19, to close today at 7th August 18.5 cents. Yes there were posts of joy when the shares were going like a rocket and now lots of posts about the company and management. Lets look at the facts instead of getting emotional about the shares.

Latest announcement states that:
"JORC In Situ Inferred coal resources of not less than 79 million tonnes of black (bituminous) coal either in one of the projects or across all the Projects combined".
Now Bituminous coal traded at $185 per tonne in the 2nd week of July 2008, lets say it drops to $50 per tonne: Calculation 79 Million multiply by $50 = $3.95 Billion.

Lets take Waterberg project 738 million tonnes of Thermal coal around $130 per tonne. Lets say it drops to $50 also: Calculation 738 million multiply by $50 = $36.9 billion.

All the prices per tonne can be changed to suit the individual, but I was looking at very low price extremes.

Now also take into consideration who the management are:

Paul Jury was the founder and Managing Director of Resource Pacific Holdings Limited (ASX listed RSP). RSP successfully developed the Newpac mine, expanding it from a small bord and pillar underground mine into a large scale longwall based mine over a three year period, which involved
$300m funding and completing major mine equipment and infrastructure development.
The market capitalisation of RSP upon listing in 2004 was $54 million. RSP was taken over earlier this year by
Xstrata at a value of approximately $1.081 million.

Mr Jury has over 20 years of direct experience in the development, operation and marketing of
various open-cut and underground coal mining companies, predominantly in the export market.
Prior to RSP, he was Executive Chair of Oceanic Coal Australia Limited, Finance Director of Coal
Mines Australia Limited and Chief Financial Officer of Coal & Allied Industries Limited.

Steve Matthews was the Senior Commercial Manager and Company Secretary of RSP and prior to that, Commercial Manager and
General Manager - Corporate Affairs and Company Secretary for Hunter Valley Energy Coal Limited (BHP Billiton). Prior to teaming up with Mr Jury at RSP, Mr Matthews held senior positions with international corporate finance companies overseeing a number of significant public capital raising
and takeovers totaling in excess of $1.5 billion dollars.

Now I am hoping I have calculated the figures correctly, no doubt I will be corrected if I haven't. I like all other holders of CDS feel down with the SP where it is but I am in it for the long haul and from the SP where it is now, it is an absolute bargain.

Before I do finish this long message why did they choose a name of Resources Generation Limited, it just doesnt come across as a mining company name. Something like Resources Mining Limited would have reflected the sector the company were in.