Sources close to industry participants in the metallurgical coal...

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    Sources close to industry participants in the metallurgical coal industry are growing in their murmurs there could be some smoke smouldering away with ASX listed metallurgical coal exploration company Cokal- CKA

    CKA has ownership in metallurgical Coal tenements in Central Kalimantan, Indonesia. After 9-10 years of exploration and some years of failed attempts to become a producer, it is crystal clear to some that the company’s prospects have been quite dire and significantly desperate with equity churn and continued dilution of the registry.

    Recently however news for CKA is progressing very well with very significant appointments to their team including
    Masruri Yahya, Muhamad Arie Cahyono, Luki Wilianto, and Tee Kok Hui. All have significant industry experience and can be read in recent announcements.

    Of most significance currently is that Aahana Global Resources and Investments (AGRI) have taken a 20% stake in CKA in April 2019, reportedly providing significant resources and contacts to forward the prospects of CKA. Their reach is long and wide in the Indonesian Coal market and publicly it is not currently known the ownership structure of Aahana Global Resources and Investments (AGRI) other than its CEO Karan Bangur.

    Karan alone has a successful track record over 10 years in the industry and jurisdiction running successful heavy machinery businesses, and has provided significant and company changing support to CKA since AGRI’s acquisition. According to company sources, Karan has been extremely valuable and productive inclusion to the Cokal team in a capacity as a Director, and has worked tirelessly to provide time and resources to bring Cokal forward towards commercial production.

    Rumours circulating over a period of months suggest that ‘Eddie’ Chin Wai Fong formerly CEO, and more recently in commissioner roles of Bayan Resources, is the other publicly unknown partner in AGRI. Sources say he may now have come close to concluding his business obligations at Bayan and may be revealed as the other partner in AGRI in the near future

    Eddie as he is known, a self made billionaire largely took Bayan Resources from a prospective Thermal Coal producer throughout the late 20th century, to a circa $5billion dollar company making close to or more than 50% in profit.

    With circulating speculation that ‘Eddie’ Chin Wai Fong has potentially concluded formal business with Bayan Resources, this likely leaves the door open for a Board position made available at CKA, and joining the company in an official capacity in the near future.

    If this were to eventuate, we are talking about the Kerry Packer of Coal in Indonesia being a Director of a $40mill MC ASX listed company with the 4th or 5th largest metallurgical coal resource in Indonesia. The staff appointments being made and progress in successfully working towards powerful infrastructure and mining contractor partners can not be undervalued.

    The CKA registry is tightly held at present and many long term holders are full to the hilt and not letting go of any shares despite its mediocre price performance over the past 8 years.

    Take note of Kangaroo Resources (KRL) a previously ASX listed company with tenements in Indonesia was bought out by Bayan Resources for circa $500million or 15c/share later in 2018. Interestingly CKA has an equally great resource in Indonesia and is currently priced at less than 12 times the eventual closing value of KRL.

    You be the judge of the potential value here.

    Disclaimer.
    *This is post is my personal assessment of CKA at present and not a representation or approved by the company.
 
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