RE:RE:Maxim Power Metallurgical CoalIn the published evaluation dated March 2013, Golder provided the following valuation on page 156:
NPV ($ million) $89
NPV + 15% Realisation ($ million) $152
NPV - 15% Realisation ($ million) $24
High Peaking at $275/tonne ($ million) $160
Low Peaking at $145/tonne ($ million) $61
Golder did not anticipate the increase in demand for steel and coking coal from India and China.
The current price of coal in Australia is $250/tonne. It has been as high as $500 million a tonne. Plugging in these values would radically change the valuation.
Assuming 1.2 million tonnes per annum, $250/tonne and $100/tonne in production costs the mine would generate a gross profit of $200 million per year not including, excluding Capex and interest cost.
My bet is that Maxim takes a royalty interest of 10% and then sells the royalty to a royalty company. You could argue the asset is worth $1 a share to Maxim shareholders, if it gets into production.
Maxim's web site now includes more information on Mine 14 & mentions Vallory.