BBY Research - 01 April 14Cokal LimitedCKA A$0.18 TARGET PRICE...

BBY Research - 01 April 14

Cokal Limited

CKA A$0.18 TARGET PRICE A$0.30 BUY 2.0X

Authors:
Mike Harrowell | +61 2 9226 0043 | [email protected]
Kurt Worden | +61 2 9226 0100 | [email protected]

Cokal Limited (CKA) is an emerging coal company with a focus in building its portfolio of assets which will provide high value access to quality metallurgical coal. The company holds interests in coal exploration tenements in Indonesia, Australia and Tanzania.

Funding in place, awaiting the Forestry Mining Permit

Cokal (CKA target A$0.30/sh NPV A$0.36/sh) has maintained its project momentum in extraordinarily tough circumstances, with the Definitive Feasibility completed 13th February 2014, today’s announcement of the funding package (31 March 2014) and we expect the Forestry Mining Permit in the next two weeks. That permit is the last requirement before CKA can commit to start mine construction, with first production due in the March Quarter 2015. CKA has 60% of the Stage 1 2mtpa initial production. Today’s funding is sufficient for 100% of the project. The funding is expensive, but a great outcome given the current coking coal price environment.