Australia's main coal superintending company CCI Holdings (CHL)...

Australia's main coal superintending company CCI Holdings (CHL) is entering an exciting period of huge profit growth as all the major coal export ports in australia bring on stream infrastructure which will allow significantly higher tonnage volumes to be exported , and thus tested by CCI who get paid for these services on A PER TONNE BASIS, and at HIGHER PRICES PER TONNE after renegotiating contracts since the coal prices rose sharply in 2005.

Let me illustrate the enormous potential here for cashflow and profit growth, by considering the port at Gladstone.

Gladstone has a combined export capacity of 45MTpa which is currently being increased in stages to 72MTpa by the end of next year. The implications of this are huge. Let's assume currently CCI exports one third of the coal through Gladstone, and has a profit margin of 10%. This equates to CCI testing 15MTpa now throgh gladstone, with the revenue from 1.5MTpa being profit, and the revenue from 13.5MT being required to cover costs.

Now lets move forward to the end of next year. Then CCI will be testing 24MTpa (one third of 72), of which the revenue from 13.5MTpa will still be required to cover costs which are basically STATIC, due to their testing process being LARGELY AUTOMATED. This means the revenue from 11.5MTpa is then pure profit.

As you can see profit has risen by a factor of 10/1.5 = 670%.

Similar things are happening at DBTS where output will rise from 50-68MTpa over the same period.

At Hay point where CCI does 100% of the coal testing, the output is rising from 35-44MTpa, in a shorter time frame.

And down at Newcastle the increase is from 89-102MTPa.

This type of inherent growth has seen large buying by parties on and associated with members of the CCI board over the past 2 years.

Now the cash is starting to pour in. Laboratory service provider CPB would love to fit CHL into it's structure and increase it's services into the coal testing arena, their hostile t/o bid at 31c has been exposed as "grossly inadequate", and "absurdly underpriced". From the reasons above which outline spectacular growth to come, you can see why this company is worth a WORTH A WHOLE LOT MORE.

Get on for the ride.