At last some decent bid-side volume which is great, because this...

At last some decent bid-side volume which is great, because this thing is way too cheap.

Remember it has tiny cash burn and A$50M of cash, market cap A$90m. So the large assets in Indonesia and Peru are valued at A$40m. We think the combined NPV is significanlty larger, c. 3-400m - the shares could be a 5 bagger.

It appears that the management think the same way to - otherwise why did the MD Shanker Madan award himself 3 clips of 750,000 unlisted options with a EXERCISE price of $2.50, $2.75 and $3.25 by 2012 only last week?!

i.e. the stock has to rally 350% before he makes any money from these levels.

I would urge you all to look at/buy into this one, and campaign with me to get the management to:

1. Spin-off Indonesia Coal assets into a separate company in Singapore. They understand and value Indonesian assets better there. Look at Straits Resources/Straits Asia as a case-in-point, and the value that was created there, and look at what it did to the Straits Resources share price. If this project genuinely has an NPV of 200m+ then create some transparency.

2. Come clean about the major shareholders, and what their intentions are. Why do the Russians own 20% of this? What deals are the comapny doing with the Chinese? They are all in it for the Iron Ore project which is vv high quality ore, and potentially massive.

I think this thing can be A$1.20 by Christmas, and am buying more. FV on a DCF is >A$4 in my view.