Colonial Coal, CAD.V

[investar]

Interesting company:

Colonial Coal ownes for 100%, 2 coking coal projects in British Columbia both with very positive economics based on a recent Preliminary Economic Assessment. Both projects are long life assets.

Together those projects represent around 700 Million Ton of Resources in the Peace River Area in B.C.

In February 2019, Colonial Coal hired Canaccord Genuity and Maxit Capital to assist the company in the monetisation of their assets. Since then, an undisclosed number of groups have signed non-disclosure agreements and have performed site visits and have done their due diligence via access to the data room of Colonial Coal.

November 2019, Colonial Coal added Mr Partha Bhattacharyya to the Board of Directors. Mr Bhattacharyya was the former Chairman of Coal India Ltd (largest coal producer globally)

The CEO, Mr Austen, has already successfully sold 2 companies in the past.

The aim is clearly to sell the company, at a minimum of 1$/tonne => minimum target price is 5$ current market cap...

Today at 0.66 CAD - last month at 0.8 CAD - in May at 0.3 CAD

[investar]

0.75 CAD now. still very cheap. Target: 5 CAD

presentation: http://ccoal.ca/wp-content/uploads/2020 ... -04-14.pdf

$2 share price is $375 value / C$0.54 / US$0.40c per ton.
$4 share price is $750m value / C$1.07 / US$0.80c per ton
$6 share price is $1.26BN value / C$1.61 / US$1.20 per ton
$8 share price is $1.5BN value / C$2.14 / US$1.60 per ton.

2 other Coal transactions done in BC in 2019 @ more than US$1.50 per ton.

[investar]

One of the insiders bought more shares, at 69c.
Stock now at 63c, thinly traded.
I believe it is a (strong) buy

[investar]

Coking coal prices up:

https://www.metalbulletin.com/Article/3 ... emand.html

Met coal producers like TECK are up +10%

[investar]

https://energy.economictimes.indiatimes ... t/77843081

CIL/ India moving up to first place as possible bidder?

"CIL is already in the process of investing a substantial amount in diversification projects namely solar power, revival of fertilizer plants, acquiring coking coal assets in Australia and Canada, coal gasification, CBM, rail wagon procurement among others in the coming years."

ex-CEO of CIL is on the BOD of Colonial Coal since last year.

[investar]

Great update from the CEO last week (via AmVest)

+ comment "sooner, rather than later"

+ insider RAM has been buying more shares at 75

+ India still looking to add strategic met coal assets

https://www.deccanherald.com/business/b ... 97022.html

[investar]

Big seller at 75 cents... possibility to build up a good chunk here (500k shares...)

[investar]

A few higher volume days have passed, now the L2 looks clear to 1$ and higher!

[investar]

Back at level below 0.8, which is strange because:

-met coal prices are on the rise
-china has put a ban on Australian coking coal, thus increasing demand in Canada

Met coal prices, and specially premium quality, will keep rising if the "commodity super cycle" is really coming.

So it is a matter of WHEN, not IF,... CAD will be sold. To the highest bidder. But not below 5 CAD, I believe.

A good position to have, and not look at, daily or even weekly, which can be difficult in a market like today with plenty of opportunities

[investar]

Heavy Insider Buying here in the 0.7 range... take a look at the recent SEDI files

This stock is a very interesting but silent long term hold.
Suddenly the assets will be sold and it will be at a price x10