I'm unwilling to paint you a picture any further that the following.
Undeveloped resources have traded for a median of A$1.35/t of resource and A$6+/t of reserves. Met coal assets have traded at a premium, with most sales occurring above A$2/t of resource, while thermal coal assets have traded largely between A$0.1-2/t of resource.
Rockwood has massive potential in terms of size and quality.
Once it is drilled out to a measured resource:
Low case = $1-2/t (assuming NO progress made on port) Base case $3-4/t (average peer) High case +$6/t (TO)
- Low case (measured) resource: 200mt - Base case (measure) resource: 400mt - High case (measured) resource: 600mt
Note: BTU is currently at $10/t of measured resource
Are you starting to get the picture of why this board, who has unparallel experience within the ASX listed junior coal space, is referring to this a potential "Tier 1" asset?
Good luck all with you investments. I'm expecting a ST bounce on a macro level and off company level news
EOC Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
