RE: Under 624 Jun 2021 15:07
I’ve had a listen to the recent interview again, the potential take off agreement is for 50k tonnes of Coking coal a month. I’m not clear on the current Coke prices but say we conservatively get $150 per tonne (anywhere to see the Coke real price?) that’s $7.5 m revenue a month with 70% going to Contango or round it to $5m rev. What’s the profit margin on this, 10%, 20% or 30%? with 20% that’s $1m a month profit which aligns with previous interviews mentioned.
In the interview (dated 7th June) Carl mentions 2 – 2.5 months for the formalised take-off agreement to be signed which should give us chunky Coke news in August.
At 15m cap with currently no debt, this feels somewhat undervalued the markets not picked up on and a great opportunity but it all depends on the agreements being actually signed which I’m sure investors are waiting for. Plus the Gold opportunity could surprise us in a month or so. I’m holding hard to see where the next 6 months take us, certainly won’t be 6p…