thats about $4 EPS give or take. But remember it wont be $4 EPS...

thats about $4 EPS give or take. But remember it wont be $4 EPS for ever. Coal price will revert over time just like the iron ore price did. From over $300 to $98 today.
I think realistically even when coal prices revert to normal over time (say by 50%) the company should still earn $2 per share and the company will pay out 50% in dividends , or $1.
In the short term the P/E is obviously low. 3 times. But a reduced EPS of say $2 will still equate to a price of around $15 -$16 and a div of say $1.

Of course in the mean term the $4 EPS and huge cash flow will all allow the company to shower us all with dividends and reduce shares on issue by 20% and create a lot of excitement and momentum. This reduction in shares on issue will also impact EPS favourably which i have not taken into account. These are rough numbers and thoughts. regards and good luck to all.