From prospectus and other media articles and interviews
http://montem-resources.com/prospectus/prospectus-disclaimer/
Montem Resources
IPO RPICE $0.25
SOI 202 mil
Mcap $50.6 mil
Shares escrowed at IPO : 63 mil shares from 12 to 24 months
Montem resources is planning to become Canada’s next steel making coal exporter
They have following assets
The Tent Mountain Mine
Chinook Project
Greenfield exploration projects (4-Stack, Oldman and Isola)
The Tent Mountain MineIt’s mine restart and will only cost $185 mil of CAPEX and yield $65 mil of EBITDA over 14 years(LOM). As it’s already been mined they only need to get approval from the State Authorities for their washing plant and a few other minor things.
- Completed drilling 7,000m, delineating 60 Mt resources
- Confirmed quality: Tier 2 Hard Coking Coal
- Mine permit and EPEA granted giving timeline advantage, de-risking the project
- Federal gov’t do not require environmental review - only need Alberta licencing
- Applications for final permits, mineral surface lease, water act and coal
- conservation act licenses well advanced
- Secured land for rail load out (option agreement)
- Port capacity reserved
- Power supply, road access and water secured
- Definitive Feasibility Study completed, showing robust financial results
- Final engineering design underway
- Licence application in Q3 2020
- Bulk sample summer 2020 to provide to customers for trials
- Pre-construction development works 2020/2021
The Chinook Project
- The Chinook project is directly adjacent to Riversdale’s Grassy Mountain, and Atrum’s Elan South
- Chinook is similar in scale to world-class steel making coal mines in British Columbia’s Elk Valley and Queensland’s Bowen Basin
- Concept study indicates potential for Chinook to host multiple large open-cut mines
- Premium Hard Coking Coal
- Power, road and rail adjacent to the mining area
- Both Chinook Vicary and Chinook South have hosted historical underground and open cut operations
- Exploration permits granted
- Exploration and environmental monitoring work over the next 2 years to produce preliminary feasibility study at end 2021
- First coal expected 2026
- JORC resource estimate 149 Mt
- Exploration targets additional 575 Mt (independently assessed)
- Tier 1 Hard Coking Coal
- Previously mined and sold to Japans largest steel companies
- Rail access and capacity available
- Port secured
- Power supply and road access secured
- Concept study shows potential for multiple large open-cut mines
Other Greenfield assets
Isola
• Hosts a JORC Exploration Target of 275 - 900Mt1
• Located 45km north-northeast of Coleman, directly north of ATU (Mcap 160 mil kiIsolation South Project
• Historical coal quality suggests Isola has a reasonable possibility of producing a coking coal product
• The property hosts both open-cut and underground mining potential
4–Stack
• Hosts a JORC Exploration Target of 65 – 125Mt2
• Located 30km north of Coleman, and is the same trend as the Chinook Project
• Geological interpretation suggests coal seams have been fault repeated numerous times at 4-Stack
• The property host open-cut mining potential Oldman
• Located 40km north of Coleman
• Geological interpretation anticipates a continuation of the coal measures encountered at the 4-Stack property
• The property hosts open-cut mining potential
Management
MARK LOCHTENBERG
ChairmanPreviously the co-head ofGlencore International AG'sworldwide coal division
PETER DOYLEManaging Director & Chief ExecutiveOfficer
25 years coal industry experience
Conclusion
Ok ,I know it is a coal company and It is not going to be a preferred company to invest for some but I am discussing financial and investment aspects of this company and not the political or climate change implications.
I like and invested in Montem resources for following reasons
Near-term production – Tent Mountain Mine Feasibility Study completed and shows a fast re-start with first coal shipments occurring H1 2022, capable of annual EBITDA of A$65m
Long-term scale upside – Potential to self-fund the Chinook Project, targeting world class scale open-cut mines
Favorable steel making market conditions – Historical 10-year average hard coking coal price of US$180/t with post-COVID recovery to be led by infrastructure spending, increasing steel and coking coal demandHard coking coal – High-quality Tier 1 and Tier 2 hard coking coalExperienced board and management – High quality board and management team with significant global coal market experience
I have no idea how it will trade on day one or week one or 1st Month but I am very optimistic for Montem Resources future prospects.
Coronado raised money at 60c and the raise was managed by the same broker of Montem ( Morgans ) and it is trading at 82c today and it is 1.3 Billion dollars company.
Atrum coal ATU is way behind Montem in terms of permitting work etc and still trading at 163 mil Mcap and it also did very well in last few weeks.
Montem Mcap is 50 mil at 25c IPO price
GLTAH
ALL IMO
Please DYOR
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