riv valuation

Hartley's valuation at end of August: $ 18.86
Current Share Price: $ 3.79

Cash on Hand (June): $1.70 ps

Valuation of 1.9Bt coal (proven reserves - coking + thermal)
$ 2.00 ps = $ 0.50 per tonne

Current market prices (thermal coal has lower values):



You can read the full Hartley report on the RIV website:

http://www.riversdalemining.com.au/component/option,com_doclib/catid,6/Itemid,26/

Now:
1. Slash the coal price by 70%
2. Take Hartley's valuation with a grain of salt
3. Note, this resource is what RIV have drilled on only 2% of RIV leases...what's in the other 98%?

What's left is an undervalued company. DYOR

" The sharemarket is the transfer of wealth from the impatient, to the patient..."




Valuation: 1886cps
Market Cap (Full. Dil.): $1821.2m ($2002.3m)
Issued Capital (Full. Dil.): 187.4m shares (206m)
Cash (as at 30 June 2008): $347.8m
Date: 28 August 2008


Slight Valuation Reduction, But Still Dominated By Moatize – We have reduced our Moatize DCF
valuation from $5.20/share to $3.09/share on the back of higher capital expenditure expectations (now
$800m, previously $600m), and adjustments to the production profile and yields in line with Company
announcements made recently. Consequently our valuation for Riversdale has reduced to $18.86/share.
Note that we have discounted our Moatize valuation by 30%, and that at 100% of the DCF valuation, it is
worth $4.41/share.
Whilst the large profit figure is better than expected, the vast majority of our valuation for Riversdale is in
the Moatize exploration potential in Mozambique. This potential is evidenced in the 1.9bt coal resource,
which is only on a very small part of RIV’s Mozambique landholding.