a little light reading - the australian

This article is in The Australian, has a small blurb about PZC on the bottom line.

http://www.theaustralian.com.au/business/mining-energy/old-king-coal-still-reigning-in-the-commodities-markets/story-e6frg9ex-1225926426291

Old King Coal still reigning in the commodities markets

MONEY is blind and - we are delighted to confirm - totally politically incorrect. If it was anyone's week, it was surely good old King Coal's.

And this in a week when the White House made it known it wants people to talk about "climate disruption" instead of "global warming" -- a move akin to downgrading a hurricane to a strong wind warning.

Pure Speculation suggests that, in a year or two, we might be talking about "climate discrepancy", which would put it on a par with having $5 missing when you balance the till.

We noticed that African Energy Resources (AFR) had a 42.1 per cent pop in its share price on Friday, with good volume, after dawdling along for some time under 10c. There was no news, but perhaps a few people had taken a moment to look at an investor presentation issued on Thursday outlining the company's Sese coal project in Botswana.

The coal occurs over 80sq km and averages thicknesses of between 10m and 12m, starting just 25m below surface. The project is near the main railway line. The company is seeking a partner to finance and manage development. The plan is to split the coal and coal-seam gas potential from the uranium discoveries in the southern part of AFR's tenements.

The other interesting development on Friday came after the market closed. It was from Guildford Coal (GUF) about the involvement by the Takeovers Panel over a deal involving a private company that owns 55 per cent of Guildford and a proposed capital raising. This company debuted in mid-July, the 20c shares ending at 18c on the first trading day. The shares closed on Friday at 41c.

The company has secured tenements covering 21,000sq km of the Galilee, Eromanga, Bowen, Surat and Maryborough basins in Queensland. This will be a story to watch with interest. It would seem that interest has been growing in the coal potential of this company, and more might be revealed in the coming days.

Meanwhile, Cockatoo Coal (COK) on Friday reported it had raised $112.7 million from institutional investors. This follows a deal with Mitsui where the Japanese conglomerate has an exclusive right to negotiate a stake in Cockatoo's Surat Basin ground.

Cockatoo closed at 52.5c on Friday, way short of a recent valuation from Wilson HTM analyst Andrew Pedler of $1.01 and a 12-month price target of 87c. Development of the company's ground is dependent on rail and port projects that are due to be completed by 2014.

Back in July, Cockatoo brought in two South Korean partners, Korea Electric Power and Pohang Iron & Steel, to acquire five projects from Anglo Coal.

Pedler produced a chart that shows enterprise value per tonne of resource. Pike River Coal (PRC) was top at $5.44, followed Gloucester Coal (GCL) at $3.64. Five other companies were valued at greater than $1, but there were some interesting valuations further down the chain.

Kangaroo Resources (KRL) with its Indonesian projects came in at 41c a tonne, market darling Riversdale Mining (RIV) at 36c and Cockatoo at 31c, which the analyst said was undervaluing the last mentioned stock compared with other producing miners.

Shaw Stockbroking has put out a "buy" on Resource Generation (RES) after the company reported that India's third largest power utility had signed to both take coal for 20 years from RES's planned thermal coal project in South Africa and to pony up $10.5m for 10 per cent of the junior.

Shaw ascribes a $US1.1 billion value to the Boikarabelo coal project and a 12-month price target of $1.60 against Friday's close at 68.5c. The report says Shaw expects the stock to be re-rated before the 2011 mine start-up and, at present prices, "the stock remains exceptional value".

And now that it has well and truly left behind its old listed identity of Sam's Seafood Holdings, Pan Asia Corp (PZC) says it continues to get encouraging news from drilling at its Indonesian thermal coal project with four recent holes all returning significant intersections.