drilling commencement to start rerating

Happy to see that regulatory approvals are in place to commence drilling.
The thesis for investing in this company is very simple. It was floated a couple of years ago on the premise of drilling into historical thermal coal seams in the Canning Basin about 150 klm south of Derby in WA.
Since then the company has basically done nothing because there hasn't been any drilling. The drilling hasn't happened because the Native Title and Land Access agreements have taken a huge amount of time to be negotiated and executed.
Kevin Wilson came on board as the md last year and started the ball rolling.
I have followed Kevin for a few years and watched him do very well with MPI Mines which was eventually taken over by LionOre. They tried to raise money last year at 16c through a rights issue but the market collapsed as we all know and the shares tanked. Money eventually raised at 11c with a 1/3 of a free option exerciseable at 30c.
Now the approvals have been granted and the drilling will commence sometime next month. Yahoo. It has been a long wait for shareholders but should they firm up a resource of thermal coal near the coast of wa over the remainder of the year then the market cap of this little company should be very much higher than it is now.
Coal is a very favourable commodity right now, much more so than 2 years ago when the company floated.
The company presentation has stated a target of 1billion tonnes. Even if they get a fifth of that in shallow open cut seams then the value to shareholders will be significant.

The drilling should mark the start of a rerating.
Where it ends up is anyones guess but I am thinking that we will do very well with this company over the next 6 months. A worthy punt.


cheers
omg