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To: Land Shark who wrote (119632)6/22/2008 1:15:10 PM
From: AuBug  Respond to of 312655
 
I didn't really do anything but divide GXS market cap by the tonnes in MII between the 2 drill holes 1,640 m apart with a 22.6 m thick coal seam. Just think how fast the tonnage grows as they drill 500 m offsets!!! If you think GXS.v is undervalued now just wait until a few more drill holes come out.



To: Land Shark who wrote (119632)6/22/2008 2:24:28 PM
From: E. Charters  Read Replies (1) | Respond to of 312655
 
Not only that, but those prices are 2007. PRB coal was shipped to Canada in 2007 for 38 dollars a ton. It is very desirable as it has low sulfur. (below 0.5%).

Indonesian Steam coal sold for $39.00 a ton in 2007. It now has a price of $75 for the same calorific value as the GXS coal.

Today the prices might be closer to $75.00. GXS has to compete in that their coal may be higher sulfur, (about 1%) so they may have to sell closer to $60.00 a ton. However they can get benefit by building a power plant and desulfurizing the coal themselves.

Until we know the actual grade of the greater part of the coal deposit, and stable prices, pricing is just guesswork.

EC<:-}