we are in production 3m tpa.., page-9

Pattersons have increased their price target to $1.55/share. See below for their valuation statement.

Valuation - We have changed our assumptions surrounding the modeling of the South Gobi project as the majority of the coal produced from the South Gobi North Pit will be sold into China as wash metallurgical coal products. Using mining costs of $2.50/t bcm, toll washing and trucking costs of $40/t and a freight differential between Free-on-Rail at Ceke and Free-on-Board Newcastle of $15/t a cash cost of $80/t is calculated. This puts the South Gobi project firmly in the bottom quartile of metallurgical coal producers globally. We retain our BUY recommendation with a revised price target of $1.55/share.