worth a review, page-43

It seems everyone is discussing the tenements and quality of coal. That is a given. I totally agree the quality seems good from all indications.

However, that is irrelevent, given that it has all been promised to the Indian group under an extremely poor deal for the shareholders.

p 106 of Qld Courier Mail of 2/2/08 talked about a deal that Custom Mining did. They bought the coal deposit in 2006 for $15 million, value added via drilling, and sold last December for $275 million.

Even if BWN's coal is good, drilling now will not add substantially to the bottom line for the shareholders, and they certainly will not be getting a deal like Custom Mining's upside for the BWN shareholders.

Under the SPC formluae between Bowen and Bhushan, the maximum Bowen could get out of an operating mine (and only that after the mine is commissioned) is peanuts!!!
The agreed price only takes into consideration the JORC'd coal, and totally disregards the indicated and inferred resources.
Then it only gives a price of $1 per tonne on the JORC resources only.
As my geologists explain to me, that means a very poor price indeed for what might be a very large resource, because the price is only worked out on part of the size of the resource.
Particularly if you take into consideration that Bhushan control the JORC'ing of it!

Unbelievable, and no one on this forum seems to be batting an eyelid about it!!!!!

However, the share price has been spiralling downwards and I can see why.

Can all of you read the agreement in detail.