this should make the sp go for a run, page-26

Interesting article out. The bottom line is also of interest against our peers. Does appear we are well advanced compared to others.

Firestone Energy Limited (FSE) announced that its joint venture with Sekoko Resources (Pty) Ltd has entered into exclusive negotiations with a major, international listed power company with respect to a potential transaction comprising both:

? the company becoming a cornerstone investor in the Waterberg Coal Joint Venture Project; and

? a significant coal offtake agreement for the life of the mine.

We see the potential introduction of a cornerstone investor at the joint venture level as a positive, particularly given the introduction of new funding and coal offtake at the project level.

If negotiations are successful, this should reduce the amount of funding needed at the project level, reduce the amount of equity funding and dilution by FSE, and provide further support for the development of the Project.

At this stage, our valuation remains unchanged at A$0.05/sh. Our valuation could easily grow to A$0.125/sh as it leverages its conversion to producer status into increasing sales volumes. On comparables with neighbour Resource Generation (RES), FSE should be trading at A$0.09/sh. We maintain a Speculative Buy with a 12-month price share price target of A$0.05/sh.