if we further extrapolate the price expectations once cash-flows eventuate the below is probable and highly lilkely in my view ;
even if we assume initially only coal cartage of 2mtpa x $50 margins = $100m pa free cashflow and earnings
so prospective p/e is ; p.e at .14cps / $100m net income /1,000,000,000 shares on issue = .14cps / .10 = p/e of 1.4
sooo even if we trade at a p/e of only 5 as a new miner on 2mtpa coal cartage at a net margin of $50pt
our share price should appreciate to 56cps
imagine a sustained high coal price [ like oil and iron ore at the moment ] and an expansion of coal cartage to 3mtpa or 6mtpa ?? it is very probable that dividends and a share price of $1 is attainable
keep holding tight long termers
this is an incredible growth stock coming to life
CKA Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
