In The Australian today:Note Argonaut is suggesting Atrum is...

  1. TPK
    1,121 Posts.
    lightbulb Created with Sketch. 415

    In The Australian today:
    Note Argonaut is suggesting Atrum is ripe for a takeover as its corporate appeal is enhanced.
    Ans Argonaut would be aiming for that no doubt.

    ATRUM COAL SURGES ON REGULATORY REPEAL

    Shares in Canada-focused metallurgical coal hopeful Atrum Coal have surged on the back of the repeal of a regulatory change in Alberta, where the company’s Elan coking coal project is located.

    Shares in Atrum were up 5.5c, or 26 per cent, to 26.5c at 2pm AEST after the company said the provincial government in Alberta had repealed a 1976 coal development policy that could have made it more difficult to win approvals mining at Elan.

    The company said the land use designations under the old rules would have forced it to seek special exemptions at ministerial level for an open pit operation at the project. Removing the policy means the company can seek approvals under the same system as competitors such as Gina Rinehart’s nearby Grassy Mountain project – acquired through the $700m takeover of Riversdale Mining last year.

    In a client note released on Monday Argonaut Securities analysts said the decision represented a “significant de-risking” of Elan, opening up an easier path to permitting.

    “Argonaut believes this change of policy, and the subsequent de-risking to the permitting process, greatly increases the corporate appeal for the Elan Project,” the note said.

    “Premium coking coal projects of this scale, located in low-sovereign risk jurisdictions with access to transport infrastructure are extremely rare. We regard the project as a takeover target for a major diversified mining company.”

 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.