Coalworks’ Very Own DiamondPosted by BBY on 17 February 2012...

Coalworks’ Very Own Diamond

Posted by BBY on 17 February 2012

Coalworks (CWK), a company which is focused on developing coking and thermal coal projects, today provided an updated resource estimate for the Ferndale project in the Hunter Valley. The company identified open cut potential of 443Mt, well up from the previous exploration target of 50-80Mt, prompting BBY Analyst’s Kurt Worden and Mike Harrowell to upgrade their price target to A$2.00/sh. “Coalworks also reported a 300Mt inferred underground resource at Ferndale, with seam thicknesses sufficient to support an underground mine of 5Mtpa for 20yrs plus. This is confirmation of previous guidance,” Kurt and Mike wrote in a note to clients. “While the data on Ferndale’s underground and open cut potential is still very preliminary, there is clearly a lot of coal underlying the lease. Optimization is highly likely to generate a very valuable asset.” BBY retains a STRONG BUY recommendation.