Bowen Coking Coal (ASX: BCB) is up by 9.68% this evening to $0.17 per share in Australian trading where its market cap is now AUD$206 million (CAD$190 million)! Between BCB's five coking coal exploration projects the company has a measured & indicated resource of 152.79 million tonnes, but BCB has no infrastructure and no chance of any near-term production!
The Donkin Coking Coal Mine's measured & indicated resource is 48.57% larger than BCB's measured & indicated resource! This means the Donkin Mine is worth $282 million from its resource alone but including its infrastructure and the fact Donkin is already fully permitted/developed to produce 3 million tonnes of saleable coking coal per year... if Donkin's owner Kameron Coal was publicly traded it would currently have a market cap of $600-$800 million!
Generally speaking, gross production royalties are almost always worth 5-10X more than equity in the same mine. If the Donkin Coking Coal Mine is worth $600-$800 million, Morien Resources (TSXV: MOX)'s 2%-4% gross production royalty in Donkin most likely deserves a valuation equal to 20% of Donkin's equity.
MOX's Donkin Coking Coal Mine royalty should currently be valued by the market at $120-$160 million!
Including MOX's cash plus its royalty in Vulcan Materials (VMC)'s Black Point Aggregate Project, MOX deserves a current market cap of $125-$165 million!
With only 50.91 million shares outstanding, MOX should be trading today for $2.46-$3.24 per share! It won't get there overnight but will trend towards there in the weeks ahead!
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