quarterly report, page-41

Yes 99, you're right - it's very hard to put a value on the coal with the limited information available. As illiquid points out, the profit margin will determine the attractiveness or otherwise of the whole deal.

Regarding the increase in Bayan's SP on the date of the announcement, it's really not possible to judge the effect of the KRL acquisition because that appears to have been announced at the same time as they announced the purchase of the 9 Pakar leases, and that could have been a major factor in their SP lifting. However, it appears from the media release that Bayan's SP finished up 2% (after initially rising 12%), and KRL's SP finished up 16% on the day of the announcements, which suggests that the market thought that the deal benefited KRL more than Bayan.

Thanks Technique for the info about Bayan having an associated company which dries and upgrades high-moisture coal. It looks like their process is similar to Exergen's, but they are ahead of the Oz company. Exergen are about to run a test plant on their process in Victoria, but apparently Bayan's company has been in operation for at least a couple of years. Another plus for KRL if the Pakar coal requires drying.