STTCOMP CKA FA LONG
MC $37.6m
Cash $51k (as per last quarterly) + company has drawn down $2m from convertible notes = $2.51m - expenses since last quarterly
From today's announcement:
Highlights:
>> Terms negotiated to provide 2.5 million tonnes of coal through an offtake agreement.
>> Cokal to potentially receive three months’ coal sales in advance, providing pre-sale funding § Sale of 10,000 tonnes of BBM Anak coal at USD96.60 per tonne
>> Final two tranches under Magna Convertible Note Agreement not to be drawn
"The coal will be supplied in shipments of 50,000 tonnes per month. The total value of this coal off-take is approximately A$400 million over the term."
"Cokal will receive funding equivalent to three months (150,000 tonnes) of coal sales, totalling approximately A$25,000,000 (the “Initial Prepayment”), to be repaid by Cokal via the delivery of ULV PCI coal."
Red flag (not big)
Convertible note of $500,000 was converted into 17,250,055 equity shares on 4.12.17, so there will be some selling pressure, so time your entry properly...
Also, from announcement " The coal offtake proposal is non-binding and conditional in nature and may or may not result in a transaction that is acceptable to the Company." which is standard practice IMO, however invest what you can afford to lose or afford to wait to mature...
