strong bounce expected 2 billion tonne of coal

This company has just announced a 1.2 billion tonne JORC for steam coal but is raising capital at the same time.

I think this will bounce very hard once the capital raising is finished.

Currently, shareholders with entitlements are probably selling stock to exchange them for 1 share and two options for 10 cents.

I think the capital raising should raise between $2.5M to $3M.

Shares on issue should be around 120M and options 60M

That is 7 tonnes of coal per share.

Market cap at 25 cents fully diluted will be $45M or 4 cents a tonne of coal.

Coal is however in central QLD, with no railway. But resource should reach 2 billions tonnes, low cost mining.

Gina Reinhart has coal in the area and is pushing for railway development.