12m mc, 3m cash, 400mt jorc!! 2bt target!!, page-33

AVA's coal has a very low calorific value of 11MJ/kg. It also has an ash content that is way too high for my liking, 52%. Sure, the tonnages are impressive and the strip ratio is economical, but the clincher is the quality of the coal, and in AVA's case it is quite poor. Beneficating this up to 18MJ/kg for domestic sales and 23MJ/kg+ for grade C export sales will be very expensive.

HDG's coal on the other hand sits nicely just below the 20MJ/kg calorific grade. We can scoop this up for some cheap domestic sales, but our managing director believes Grade A (27.5MJ/kg) export coal quality is a chance. Having said that I personally would be satisfied with a grade B product (26MJ/kg) which currently sells at $120/t.

HDG's coal is a far better product. Period.