This forecast, released yesterday, follows a boardroom interview on Monday with Resource Pacific chief executive Paul Jury, in which he again encouraged shareholders to reject Xstrata's "inadequate" bid.

"We commissioned an independent valuation on the company, and the independent expert has valued the company at $3.56 to $4.09 a share," Jury said.

"A combination of factors have continued to maintain the fact that the bid by Xstrata is inadequate relative to the value that the company offers its shareholders at the moment."

In its forecast, Macquarie offered its own, slightly more modest valuation of Resource Pacific. Macquarie's risk-adjusted valuation placed the company at $3.19 per share, still more than Xstrata's bid.

However, it said that this figure would increase to $3.45 if semi-soft coal prices of $US120 per tonne and thermal coal prices of $US100/t were assumed.

One thing the two companies do agree upon is that rising coal prices will have a significant positive impact on Resource Pacific.

Macquarie predicted that for every $US5 change in the price of semi-soft coal in the 2008 financial year, there will be a 23% increase in Resource Pacific's earnings.

"The company on a stand-alone basis is certainly enhanced by these record coal prices and will generate significant revenue going forward," Jury said.

"At this stage of the game we've advised shareholders that it's really not the time to exit the coal sector.

"If Xstrata would like to talk to the company we're very happy to open a dialogue with them in relation to any discussions associated with an acquisition; however, at this point in time the $2.85 bid by them is certainly seen to be inadequate."