In Conclusion of 5 squared
PEA looks at mining 100 million tonnes of coal. There is 480 million tonnes of coal at donking in 4101 compliant resources.
PEA looks at selling the coal and recieving $51/tonne. NPV of 200 million= 25% ERD or 50 million.
PEA gives costs of $23/ tonne
Total cash costs for coal production, transportation to the port and loading into the ocean-going vessel, and royalties are estimated to be $23.13/tonne.
So in reviewing these numbers I come to the inevitable conclusion That there if 5 times the resources. And we will have at least 5 times the net profit. Ie $220/ tonne for our 75% met coal vs $51 is $170 more so $25/ profit from the PEA times 5 is $125. That ought to be safe.
200 million NPV 10% after tax times 25%to ERD is 50 million. 50 million times 25 is? Wait for it! 1.25 billion. Lets say the market gives us 20% of that value of 10% discount after tax. 300 million. ERD share price= $3.25.
Stick around folks. No such thing as a sure thing. But this one looks a lot less risky than mining in Mongolia. Or oil in Iraq.
Disclaimer: I own ERD and some oil plays in Iraq.