Rocket,
The projects look like good quality, but the report also says they're going for more tech analysis on the reserves. SN.V looks like about 300m tons, similar in size to Western Canadian coal plays.
I am more familiar with mines in BC, for example in Tumbler Ridge, which have great quality and are close to shipping infrastructure. CN Rail is putting in a new deep water port at Prince Rupert which will really help shipments.
rupertport.com
It looks like Sennen is even closer to the port than some of the Western Canadian coal plays. I think some of the Western Canadian coal plays are still quite undervalued, considering some are already shipping and Sennen has some time to go (in fact I see no targets in any documents) before they can start shipping. I also noted in there Press Releases that that there were references to infrastructure development like railways, still required for some of the projects.
With coal prices jumping so much, shuttered mines like Tumbler Ridge, with readily available mines and infrastructure, come onstream first and start shipping quickly.
As more supply hits the market, the price drops, such that the newest players might not be able to realize the price they thought.
I own Fording Coal and I find the wording in their MD&A on coal prices cautious (management recently disclosed they never thought coal prices would go so high and are concerned about keeping their dividends stable in the future), so I prefer coal plays that are a little further along than Sennen.
I'm not saying the spec won't jump in and drive this thing wild, but I my style is different. Like uranium plays LAM.V, and SXR.TO, I am always curious as to why these cannot garner investor interest in Australia, where the reserves and infrastructure are and where at least local investors jumping in would be a proxy for due diligence.
BWTHDIK
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