Mentioned coking coal a while back and said that it was ready for a serious breakout
There has been next to no new investment in the space in years since it tanked from $330/t. Majors are actually curtailing production and the Chinese and Indians are ramping up buying big time !
http://www.hellenicshippingnews.com/coking-coal-price-shoot-to-a-20-months-high/
Coking coal prices have hit a 20 months-high at USD121/mt on Tuesday, an increase of 5.7% at a level not seen since December 2014.
The spikes are linked to the demand push by Chinese and Indian buyers which prompted the price movement to rise by
USD6.50/mt on a single day, 16 August 2016.
“The Chinese buyers are absorbing supply availability from the international markets with higher bids than those from India and Japan,” said a trade source.
The first 5 years DFS figures were $85/t and we can realistically shave 20+% off that IMO given the lack of investment in recent years, the cost of labor, parts, diesel etc
Expect that
CKA will shoot to between 5-10c in the coming weeks/months
- $18M market cap
- $1.5M+ cash
- no debt
- 270Mt+ resource
- all licenses in place to commence mine construction and production
IMO the only reason it ever got flogged so low was the $15M of debt the funders had around it's neck, which kept it technically insolvent and a risk of VA for years. They've since written off all of the debt in return for a production royalty
The other interesting play is that the major holder has escrowed all their stock and options for 2 years, however they are closing their major fund and must start making redemption's next year. Rumor is they will be shopping this around for a T/O
