Looking to build a stake in this coy excellent management and a...

Looking to build a stake in this coy excellent management and a world class project extremely profitable at any stage of the mining cycle. Granted profits are about 5 years down the road but the project fundamentals are too compelling.

The scoping study gives total operating costs at $38/t and the mix of coal at $93.6/t. I think all in costs of about $60/t are more likely and at worst $80/t average for their coal (which would render nearly every mine in the world unprofitable and remove significant amounts of supply). This gives an EBIT of $134M at 6.7Mtpa and NPAT of around $108.5M given the polish tax rate is 19%. Apply a PE ratio of 10 and you easily get a market cap above $1B. Now if we were to change the coal price to a more realistic outcome the returns become even more juicy.

The only major hurdle in the way is finding ~700$M to fund the CAPEX component of the project but with a CEO with significant investment banking experience and a pipeline of connections as well as the compelling project fundamentals I think we'll have banks lining up for us. Also it is a great vote of confidence to see management continually increasing their stake.

Cheers