Hi fellow short termers. Here is my idea. I only have two.
It's about a Queensland coaler. But hey, Nathan Tinkler just obtained funding to buy a thermal coal mine, so perhaps being contrarian is correct.
Look at the map of the tenement AQC was recently granted, South Clermont EPC 2011 (sorry I don't have J435's mapping skills - just read the ASX announcement). It's huge, south east of the Blair Athol mine and immediately south of the Clermont coal mine, sold to Glencore by Rio Tinto last year.
AQC have a JV with Rio Tinto over a coking coal tenement next to Rio's Hail Creek coking coal mine. So the two companies talk to each other. Is it a coincidence that AQC is granted EPC 2011 after Rio drops out (due to selling the mine)? I think maybe not.
EPC 2011 contains +6,000 kcal thermal coal that doesn't need to be washed (an extra expense). AQC say they have a JV with a financier called Linchpin Capital, which, in return for vending 50% into the JV, involves AQC being paid a monthly management fee AND Linchpin paying to drill EPC 2011. IF there is a decent resource, then EPC 2011 could be sold to Glencore or developed in it's own right, as the area is infrastructure rich.
What is interesting in my mind is that AQC only has a market cap of $4.3 million. IMO the financing deal will turn out to be worth more than the market cap. That's the value case for buying the shares.
The details of the funding should be released next week.
