things to like

Factors to like: (my collection of info -----DYOR)
------------------------------

Price -

pfs $95 coal price -spot price @ $120 with bullish forecasts from woods mackenzie and goldman sachs to stay there if not increase $10. @ 5800 calorific value we attract a %6 discount to this price

http://www.indexmundi.com/commodities/?commodity=coal-australian&months=120

Haywood

http://clientcentre.haywood.com/uploadfiles/secured_reports/CPTMay132011.pdf

sensitivity analysis by haywood (pg 2) who use a $103 coal price say a 10% increase puts 58 cents on price

-------------------------------

Yield increases -

http://clientcentre.haywood.com/uploadfiles/secured_reports/CPTMay132011.pdf

just announced 12% increase which by Haywood calculations puts extra 44 cents for every 10% gain - 52.8 cent gain

additionally -

Potential for Further Yield Increases
The analysis indicated that if the average gross energy is reduced to 5,700Kcal/kg from
5,800Kcal/kg the result would be a further 7% improvement in the clean coal yield from 56% to
63%. This increase in yield would result in a significant addition to the saleable coal reserves and
clean coal production rate on Vista.


Not sure of price for 5700 compared to 5800 Kcal/kg. Trying to find out

--------------------------------------------

Production capacity

Pre feas shows if production is increased by 20% to 10.8 this puts $724 million to NPV (over a dollar in value).
We have put on 1.08 million tonnes from yield increases already.
Gene has said on record we will be north of 10 mill tonnes per year for BFS


----------------------------------------------
Page 3 of haywood describe Vista as:

– “peerless across North America. We believe that the 9 Mtpa scale of the high energy thermal coal project is unchallenged across other development-stage company projects given the combination of scale, access to existing infrastructure, potential permitting expediency and coal quality.”
------------------------------
Management - Highland park are finance men and with other friendly holders they hold nearly 50% of company. They are known sellers of projects and with such tight control can extract maximum value for themselves (and us)
---------------------------------
Mine friendly town - Alberta was ranked number 1 in world for miner friendly town - page 18 Haywood
----------------------------------

Rail and port - Rail runs through project and excess capacity at ridely terminal. As shown in haywood article can handle 12 million p/a where there is excess capacity and can upgrade to 24 million p/a if needed.

-------------------------------

Vista south - Gene has said on record possibility for satellite mine and leverage off infrastructure from Vista

--------------------------------

Silkstone seam - Not included in pfs and lies below other coal seams. Export quality and could increase coal reserves with 16km strike length

http://www.coalspur.com/assets/release/2011/110225-SilkstoneReleaseFinal.pdf