Company FeedbackI spoke with the IR person today, this is the info I received. I am not a pumper, but an investor. Constructive feedback only, not interested in some of the crap that is posted here.
The company is looking to increase production immediately,(instead of waiting for second half of the year) to take advantage of the spike in Coal prices.
Going forward, CAPEX costs will be minimal, the increase in costs will be the extra labour to add. I don't know where the $180 million figure comes into play, can anyone tell me where GEEE gets this number from
There will be additional CAPEX costs to increase production to 6 million tonnes /yr - perhaps this is what is being referred too.
So,, at 3 million tonnes/ yr at a $100 profit margin (assume $200/tonne for met coal - we are looking at $600 million in cash, conservative # of $3/share cash flow. Even at $60/tonne profit margin, still looking at $1.00/share cash flow.
There is 315 million tonnes of resource there, they plan to spend the money to get that into indicated and measured, but this is a few years from now.
All in all, this looks very cheap to me, and would not be surprised to see this one taken out.
IMHO