Pollystar,I'm not a market analyst so I'm out of my depth...

Pollystar,

I'm not a market analyst so I'm out of my depth discussing market caps but the main thing you need to consider IMO is not JORC tonnage but mine output.

This will probably be constrained by available infrastructure. They would need to get at least 5Mtpa to get a decent project I'd think.

Example at 5Mtpa - assume a long-term average margin of $10/t, = $50M per annum. On top of that you need to subtract capex funding costs and admin. That should be lower than, say, EER or AFR because they don't have to build huge amounts of infrastructure.

If you want to work on a valuation in the meantime, you'd probably be looking at perhaps 10c per ton of JORC, but that varies enormously depending on market perception. It can vary from a few cents to up to $1/t depending on coal quality, resource grade (inferred, indicated, measured) and how much value the fickle market places on it.

EV per ton is a flawed valuation concept anyway IMO because simply having more tons of a poor deposit doesn't make your company more valuable. If you drill around the limits of your deposit you might double the JORC tonnage (and thus the market's perception of its value) but you're not adding any potential reserves - you're scraping the bottom of the barrel with stuff that is not realistically likely to be mined.

But it's one of the few ways we have to compare apples and oranges when it comes to coal valuations, so as TVN grows and develops a JORC you will start to hear "EV of x cents per ton" thrown around.