Hi DJI have no targets but looking forward to NEC proving up...

Hi DJ

I have no targets but looking forward to NEC proving up some of that resource target.

I know little about the stock.

115m shares.

Production is targeted to be 5 years away.

ELIMATTA PROJECT
Open Cut Export Thermal Coal
Established Resource,
+20years Reserves @ 5Mtpa

Were targeting 0.5mtpa coking coal production however meeting the new 60mt coking coal resource could increase this to 3mpta.

At costs of $50 tonne and revenue of $80 and $120 a tonne respectively, potential annual EBITDA is $360m pa or NPAT of $230m pa.

Not sure about capex. Could be $150m or another 50m shares. EPS could be $1.35.

50mt of coking and 100mt of thermal at current market cap is 70 cent per tonne.

At $5 a tonne in-situ, 50mt of coking is worth $2 a share.

So merely guessing, successful drillingJORC program could see NEC reach $3 after its completion.

Who knows???