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Surf_Rat
Super Contributor
any idea where we could go to on this one 189 ???
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3 REPLIES 3
Not applicable
How much can a pile of low grade anthresite (sp) and a coal washing business really be worth?
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THRESHOLD
Super Contributor
Ther are only 143 500 000 shares in issue. She is mining at a rate of 1500 000 tons per year. No debt to speak of. cash in the bank. Her own logisitcs business has nearly a million tons per annum of in-house "small" clients. Now she has a contract to supply ESKOM. One of the directors just bought 6%+ of the share capital off the market. She has a captive rail siding and extensive small scale additional reserves. At the "bottom"? of the market she was making 8 c per share. Her normalised turnover looks as if it was around the R550 million mark. This is more than PETMIN's. So - in answer to the preceding question - PETMIN sells 220 tons of anthracite per year (and some sand) and has a market cap justifying a price 10x higher. BUT then again - who knows? (And these share should have been accumulated between 67 - 80 cents during the consoidation pjase.
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topgun
Super Contributor
The acquisition of SAH in exchange for 50.2m WSL shares values the former at R65m at the prevailing share price of 130cps. This seems like a steal given the operating mine, company-owned railway siding, RBCT export allocation and additional coal reserves procured with this acquisition - nothing is said about the liabilities though although a section 311 compromise was reached with creditors and sanctioned by the Supreme Court last year. SAH raised close to R100m which it invested before suspending operations when it ran out of cash and the bottom fell out of the coal market. Some of these shares might well find their way back to the market once the transaction is ratified which would provide a great buying opportunity provided the commodity upturn remains on track. Pity the SAH shareholders though - the transaction values their shares at 14cps compared to the last traded price of 40cps before its suspension.
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