Yesterday I highlighted an article by Frank Gomez in both the...

Yesterday I highlighted an article by Frank Gomez in both the Australian Energy Report and the Eureka Report, which outlined Rey Resources as a candidate for the next ten bagger. I for one agree and provide eleven factors why there is a good chance this will prove to be the case.

1. Rey has established ownership of 8,000 square kilometers of the Canning Basin. This is most of the basin and puts it in a rare position as holder of one of the last major under-explored mineral and oil provinces in Australia.

2. These leases have a huge thermal coal deposit estimated at 30 to 36 billion tones of potential coal. This includes 9 to 11 billion tones of near surface coal and is supported by previous drilling by Thies and A.I.E. in the 1970s.

3. Rey has established feasibility for the timely export of 2Mtpa thermal open operation cut through Derby. Longer term includes multi mine basin, thin seam longwall, shallow open cut, UCG/ CBM.

4. Reys 2009 development scenario completed, as planned, e.g. pre-feasibility, environmental studies, secured port facility.

5. Reys 2010 development scenario completed as planned, e.g. permitting, native title etc carried out, new shallow coal exploration targets of 1 to 2 billion tones of coal identified, reserve drilling about to commence, as planned.

6. Reys leases additionally incorporate Gas and Uranium Projects that are currently being developed by other parties.

7. There is a massive demand from India and China for thermal coal and this is seen to be ongoing well into the future.

8. Rey has a resource that makes them a potentially a huge thermal coal supplier to these markets and is not infrastructure constrained.

9. The thermal coal resource is in a premium location to supply export markets by sea transport in nearly half the time, when compared to eastern seaboard suppliers.

10. Rey is under the markets radar, potentially undervalued and likely to soon capture global interest, if not already the case.

11. Reys Management has a large shareholding in the Company, which is an incentive for success.

Finally, ten baggers take time to realize and require shareholder that see the big picture and have great patience. Losers, of course, expect huge undertakings requiring complex planning, negotiations and the like to be put in place overnight. Do your own research with specific caution and dont be fooled by losers, whose impatience makes them quick to sell out or unfairly negate on un-researched and off the mark supposition.