Leading companies in the emerging coal developers and explorers sector – which has already seen $6 billion worth of merger and acquisition activity over the last 18 months – are expected to be valued at a premium to their current enterprise value of $40 per tonne of resource, the report states.

“In our view, the valuation upside for our preferred Australian Securities Exchange-listed stocks is significant given the major producers globally trade on much higher valuation multiples and longer term pricing is expected to remain robust for some time,” the report states.

“We continue to remain positive on the long-term demand for coal and believe there is enough reason globally to expect coal prices will continue to perform.”

Acacia Coal’s key Comet Ridge project in Queensland has a current JORC resource of 150 million tonnes targeting open cut coking coal.

Acacia recently entered into a binding agreement with Bandanna Energy in relation to the sharing of a train load-out facility which will be built on a portion of the Comet Ridge tenement and significantly reduces the upfront capital expenditure on the project by approximately $50 million.

“An additional infill drilling program is underway with a view Acacia will achieve a JORC indicated status within the next six months,” the report states.

“Concurrently Acacia will progress towards a scoping study by [the second quarter of 2012] with the goal of converting to a mineral development licence and completion of a bankable feasibility study by the end of 2012.”

Bandanna is a coal developer on the path to production with world-class assets across the Bowen and Galilee basins in Queensland.

Its Bowen Basin assets are all 100% owned and contain more than 1 billion tonnes of JORC resources from four key projects including export thermal and pulverised coal injection coals.

“In the Galilee, Bandanna also has a 50:50 [joint venture] interest with AMCI, with 580 million tonnes of attributable coal net to Bandanna in a growing thermal coal region,” the report states.

“Bandanna has secured both rail and port facilities targeting 4 million tonnes per annum of production from 2014.”

Guildford, in its short period since listing, is well on its way to producer status after the granting of a mining licence in South Gobi, Mongolia, according to the report.

Guildford will now move towards completion of a scoping study with the expectation of a mining contractor being selected and securing an offtake

partner by May 2012.

Management has initially flagged that mining will commence by mid-2012, targeting 2-4Mtpa.

“In Queensland, GUF is currently positioning itself to be a serious player in the thermal coal space,” the report says.

“Its large asset base and diversification potential of product and port makes GUF attractive to a number of suitors.

“It has a current 2 billion tonnes JORC and an exploration target in excess of 8 billion tonnes.”