Well here it is. Without knowing the margins that the Bengalla...

Well here it is. Without knowing the margins that the Bengalla mine produces at I'm not sure of the value. I trust that they have thoroughly run the numbers though. NHC's share would be around 3.4m tonnes per year at around $55US or $78AUD, which puts the revenue for NHC at around $267m per year. If we assume a $60/tonne AUD cost it would generate around $61m in profits per year or 7% ROI. If the numbers are around this level or better I'd be happy with that considering the purchase is done close to the bottom of the market, and average margin is likely to increase over time as the current oversupply drys up. I also hold shares in RIO, but expect both parties could benefit from this transaction. RIO has a big portfolio which they are attempting to simplify so that they can focus more strongly on their best assets. For NHC with a smaller portfolio they may potentially be able to squeeze a few more cost savings out of it since they can devote more attention to it.