The bottom is in. The wolves are out. Between the Russians, the Chinese, and now Mick Davis, there is 45 billion dollars in Coal under the sea, with tunnels, port, railway bed, and environmental approval at Donkin.
https://www.bloomberg.com/news/2014-01-22/ex-xstrata-ceo-davis-said-to-seek-3-billion-to-buy-mines.html
Currenty our market cap sits a 5 million. Times 4 to account for Xstrata-Glencore and we have a market cap of 20 million.
There are several ways to look at this.
NPV is about a billion dollars. So 2% of NPV.
Total Resoruce of 400 million tonnes at 20 million is 5 cents a tonne.
Total Value is 45 billion so we are .05% of total value.
Total Money spent on this project in 2014 dollars= 260 million. So 7% of money invested.
(I valued the tunnels at 230 million with a 120 million 1990 dollar plus inflation)
Peak of Market valuation in 2011(seems like a million years ago) 180 million.
Dilution (-50%).
In other words ERD traded at 1.80 based mostly on Donkin. We halved the shares. So at the
peak of the market, before we had EA approval, our shares would be worth at least 3 dollars.
A 30 bagger for the taking.
Other factors-ready work force that is tired of commuting to western Canada. No replacement for met coal on the horizon (unlike thermal). Ready and willing government. World Economy ramping up. American manufacturing taking a shot in the arm from low gas prices.
Still long, still crazy about Donkin, been right, been wrong, this story aint over and nothing matters until you sell, except when you buy