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
It’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.
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
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 Chairman
Previously 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 demand
Hard coking coal – High-quality Tier 1 and Tier 2 hard coking coal
Experienced 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
MR1 Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
