So based on Eskom production we are ~ 5c/Share EBITDA prior to adding in Ichor/Exarro deal. As others have suggested almost an annuity for the next 10 yrears at least.
It is reasonable to assume the new deals by management with Ichor and Exarro wouldn't have been entered into by any party unless they thought it was to their mutual advantage.
With talk of doubling coal output with international pricing + extra Eskom production then earnings of 8-10c/Share would seem reasonable longer termer for the thermal coal component. So at a SP of say 5x future earnings we might be somewhere between 40c and 50c. Oh no only ~ 10c!
Then there is coking coal. to consider where prices seem to have bottomed and is looking towards $130-135/t in future and not included yet hmmm with a Billion ton resource.
Is this company just too small for bigger players or are the analysts on holiday.
UNV Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
