The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Back in at last Polinex news is a real leg up as I see the US as the transformational market Europe and JApan should add a fair bit, does anyone on here agree with the 50p fair value for this with us approvals I would have thought a fair bit higher?
Interims are out tomorrow so may see upward movement also on iii they are saying shares on aussie index are up 7% cant understand why no movement here? hopefully we could get an update on negotiations fingers crossed
totally agree there are lots of stocks out there at present who have chances for a substantial sp rise but this is almost a definite. Essar and the chinese are not companies who struggle to raise money £1.50 should be a minimum in my view. Im just impatient wish they would announce something!! GLA
This board has gone quite the calm before the T/o storm hopefully!! Just used the lull to top up I hope we will know something by end of this month?
Better news, i have just looked on the Caledon website and their cost estimates to get the stuff to market are $64-67 per tonne not $100 as i had allowed for ther £500 million looks to still be a good deal for any purchaser. Once that RNS is issued then should be boom time, even better if we get a bit of a bidding war breaking out Does anyone have any fact/rumour on when announcement are due? The half year results at the end of the month look an obvious date for me?
Even better, Essar are not going to value it on current SP (much as they would like to ) They will value it on their resources and benefit to the group. The indian press have obviously got the figure from somewhere and with the chinese also a likely bidder £2 a share is easily possible. Hopefully some statements will be released soon. Interetsing that the chinese are at war with Rio tinto over being charged over the odds for their minerals i dare say they would pay a premuim to ensur ethey are not over charged on coking coal in the future as china is still the world leader in consumption of steel. One thing i hadnt realised until i looked into it is that the queensland coke is premium stuff roll on the next rns!!
I can see a purchase price of $1 billion not being to far from the truth depends what value a tonne of coking coal has. Queensland coking coal is the prime coal for the metals industry and has a value per metric tionne of $125-$150. Reserves at caledon are approx 400 million tonnes so a $1billion purchase price would mean a gross price per tonne of $2.50 !! now taking into account the staff costs and a big digger to get it out the ground and allow say $100 per tonne the purchaser at $1 billion would still be getting a huge discount to buying out coal even on a historic low spot price. £2.30 not as impossible as it seems in my view what do others think?