Hi dmagnus, the risk is it's in South Africa. Other than that, a lot of catalysts in short term. They have 1.93 billion tonnes of thermal coal and coking coal (around 1 billion tonnes under UNV's interest), you can have a look the website, all the projects are close to rail. 3 thermal projects, 2 coking coal projects.
By this quarter, we should have several announcements (maybe not all of them on time, some maybe a little bit delay):
Thermal projects: 1. Kangala Project This is most advanced project for UNV, Mining right and environmental approval were granted, only water licence left. They expected June quarter. But it is not under their control, they submit the application more than 1 year agao, shouldn't too far way.
Offtake deals were underway with Eskom or sales to neighbouring Leeuwpan colliery (Exxaro).
Resource update-Inferred resources to a Measured category, will be released this quarter.
Final BFS result by end of March. (I guess maybe a little bit delay, maybe that's why they use "imminent")
2 Roodekop BFS should be finished by March 31.
3 Brakfontein Resource update coming soon.
Coking Projects 1.Berenice/Cygnus Scoping study result for Berenice/Cygnus project is expected by end of March 2012.
121 borehole phase 2 exploration and assay programme should commence on 1 March 2012.
This project is next to coking coal project of CZA (COAL OF AFRICA LIMITED).
2.Somerville-Donkin 274Mt Gross in-situ inferred resource. Exploration target within tenements is 800-1,000Mt.
They also several funding options in hand, they will make a dicision shortly. What I like UNV is they not only own thermeal coal also coking coal. There are some brokers' reports on their website, valued it from around 74c-1.00. I think it can't stay at this price too long, easy to bounce back to 30s on positive news. Like ZYL stay at around 13c for a while, once positive news coming, it just doubled.
Some articles you can have a look:
Kusile: Universal talks to Eskom http://www.thenewage.co.za/Detail.aspx?mid=53&news_id=42245&cat_id=9
India`s quest for coal just beginning (it mentioned Neyveli Lignite Corporation could be looking at Universal Coal for take-off agreements or investment.) http://www.mineweb.com/mineweb/view/mineweb/en/page38?oid=143448&sn=Detail
Universal seeks advice as South Africa attracts interest http://www.theaustralian.com.au/business/mergers-acquisitions/universal-seeks-advice-as-south-africa-attracts-interest/story-fn91vdzj-1226251725453
South African coal glow grows http://www.theaustralian.com.au/business/wall-street-journal/south-african-coal-glow-grows/story-fnay3vxj-1226251026999
Hope it helps.
UNV Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
