short term trading - week starting 26th august, page-52

Entry for STT List MOU

Market Cap $7m Cash $1M

Mongolian Coal explorer


Almost Half a Billion Tonnes JORC resource with the bulk in the highest confidence level of Measured so ready to go

Mining Licenses recently granted so getting ready to mine

Rail line within 6kms so transport infrastructure not a problem

"Nuurst is 6 km from existing rail infrastructure allowing direct access onto the existing Trans-Mongolian Railway line providing low cost access to the key thermal coal export markets in China."

Power lines within 6kms too so power not a problem

The only box that remains un ticked is the funding/offtake box but it looks like they are working on a plan to start up with the sale of coal briquettes to the Government and even this small operation could generate around $25M per annum in PROFITS by my rough calculations

The funding/offtake with the Government will be a big catalyst for a rerating but given how far along the company has come Im surprised they haven been rerated a little higher already

The wild card is the MOU's Nuurst project surrounds Coal Giant Peabodys permit

Reminds me of a mini FAS before all the pieces fell into place and low risk punt given 52 week low is 0.6c vs current price 0.7c