AUO austral coal limited

AUO - Austral Coal

  1. 217 Posts.
    Austral has been waiting for confirmation of the funding for its Tahmoor mine and it must be a relief that it's now in place.

    Funding the expansion of a single mine (ie taking on the risk of one mine site) is not that easy for most banks so I for one am impressed that AUO has received the necessary support.

    The stock will go up when results come through ( I think doubling is possible over the next 12 months). What's holding back the share price? There is some negative sentiment about coking coal prices being expressed by some but not all analysts, though the most recent announcements from Austral's management are very bullish.

    I took some profits on AUO some 2 months ago but I remain very confident about my remaining holding. The management have proven themselves to be a class act and the prospective p/es are well south of 8x for the 2003/2004 year even if there is a modest decline in coking coal prices.

    Gung ho

 
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