price rised

The SP of REY has risen from 20c at CR to 30.5c, a 50% increased. The following may be the reasons:

1. Flooding in central QLD and northern NSW has affected many coal mines in the region, causing 5 mines to close. Flooding will persist until the change in the ElNino/La Nina cycles. To ensure uninterrupted supply of coal, companies will need to get coal from other parts of OZ. REY coal deposit in WA is now a strategic deposit, attracting strategic premiums.

2. The company has recently announced the coal quality of its deposit, and is deemed to be export quality.

3. JORC resource is 511mt, but the target is 9-11bt. Achieving 10% of the target will double the JORC resource.

4. Thermal coal has risen from $58/t to $116/t quoted recently. A doubling of the coal price is not a doubling of the profits, it is much more. Example:
Cost $48 (example only), Price $58 = Profit $10.
Cost $48, Price $116 = Profit $68.
680% increase in profits!

5. India demand for coal is increasing and is putting pressure on India companies to ensure supply.

6. Fund managers are taking positions for an eventual takeover.

7. PFS completed, project is viable. Production in 2013.