CHPP / saleable yield100%Saleable tonnes ÷ ROM feed
Realised coal price$51/tModeled pricing point
Site cash cost$39.75/tPer saleable tonne
Cash margin$11.25/tAfter royalties and modeled deductions
Risked NPV$106m100% ownership
Investment verdict
A productive high-CV longwall mine with limited standalone public technical disclosure
B+
B+
Grade & continuity
31.5M saleable reserve tons support a compact reserve life and a differentiated high-calorific-value export product.
B+
Metallurgy
The long-running mine uses conventional underground production and coal preparation without a novel process route.
B
Mining complexity
Longwall mining is proven but exposed to face moves, geology and underground operating interruptions, with less multi-mine redundancy than PAMC.
B+
Infrastructure & power
Established Colorado mine infrastructure and export access are adequate, though inland rail distance constrains delivered-market competitiveness.
B
Permitting status
The mine is operating and permitted, but its long-run permitting, ARO and reclamation schedule is not separately disclosed.
B+
Resource confidence
The 2025 10-K reports proven and probable reserves, but Core does not treat West Elk as a material property requiring a standalone S-K 1300 report.
C
Geological upside
No separate measured, indicated or inferred resource is disclosed, so the model credits no inventory beyond reserves.
C
Expansion optionality
Current management guidance supports 5-6M tons annually, but the 31.5M-ton reserve and absent expansion study limit visible mine-life extension.
Valuation snapshot
100% NAV retained
Unrisked NPV$106m
Project DCF before the published stage and execution-risk charge.
Risk charge−$0m
Value removed by the model's project-stage and execution-risk adjustment.
Risked NPV$106m
Selected project value after risk, before ownership attribution.
Effective discount rate7%
Time-value hurdle used for the project DCF after published adjustments.
NPV at first production$106m
Production-value anchor with pre-production timing removed; used by the FSV ladder.
Annual operating profile
Spot · risked · 100% of project
Saleable coal and CHPP yieldannual ROM-to-product conversion
Mt · %
Saleable-tonne economics2026E operating row and life-of-mine cost basis
US$/t
Realised price$51/t
Site cash cost$39.75/t
Cash cost incl. sustaining$45.75/t
Cash margin$11.25/t
ROM coal31.5 Mt
Saleable coal31.5 Mt
LOM saleable yield100%
Site cost / ROM t$39.75/t
A 100% yield indicates a schedule already expressed in saleable tonnes.
Revenue and cost stackcosts and capital aligned below zero
US$m
Capital recoveryannual and cumulative project cash flow
US$m
Timeline Built from the stored anchor years: construction start, first production, and closure (or first production plus reserve life where no closure year is published). The marker is the year the current valuation is struck from.
Construction
1981–2026
Production
2026–2032
19811988199520022009201620232030
Dashed line marks 2026, the year this valuation is struck from.
Resources and reserves
Effective 31 Dec 2025 · Attributable basis
Ore reserves
Asset
Proven (Mt)
Probable (Mt)
Proven & probable (Mt)
West Elk Mine
29.8
1.70
31.5
Coal tonnes are on the disclosed source basis; no equivalent conversion is applied.
Valuation framework Fair speculative value ladderProduction →
Two valuation lenses$106m production-value OV anchors the speculative
ladder; $106m stage-risked DCF is the selected modeled project value.
Speculative value by development stage
Current model stageProduction 100%–100%
certainty
Market-implied project value$4,508m Company market capitalization