CCC 0.00% 0.1¢ continental coal limited

the market won't know what has hit them

  1. 6,612 Posts.
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    At current prices CCC is trading with an enterprise value of approximately $170M.

    For that, the company has approximately 630Mt of I/I/M coal resources. On this basis alone, the stock is trading at a value of 27c/tonne. For a medium range thermal coal explorer, this value would be considered about the norm (i.e. quite a few thermal coal company's without cashflow are valued at this enterprise value relative to their coal resources).

    So on that basis, the market must be forgetting a few things...

    1. We have two producing assets.
    2. We have another asset set to commence production in the next 8-9 months.
    3. Within the next 15 months Conti's largest asset by far, De Witt, is set to hit the production line.
    4. Within 24 months the production from De Witt will be bolstered with the commencement of the complex operations.
    5. It is estimated that CCC have 2.7Bt of shallow lieing medium grade thermal coal ready to be JORC defined in Botswana.
    6. Kenya tenements are an option which will pave the way for Conti to work in a country with an expanding economy and a high demand for electricity (i.e. high demand for the coal).

    Conti is set to re-rate expotentially over the next 2 years in my opinion. You won't find a cheaper coal company on the ASX that is not only moving into production, but will increase their revenue 10 fold (at least) in the next 24-28 months.
 
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Currently unlisted public company.

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