What is Aspire (AKM)

To all LT holders & Believers : Apologies for repeating same FA that has been discussed here for a while but just wanted to put this down for new hunters .

I guess, small market currently only looking at Rail Project and recent LOI signed with CDB (which is a huge bonus for the company); while ignoring the main fundamental/projects of the company (i.e. Second Largest COKING COAL). AKM currently trading at $27m MC.

Let me try to put down some details here :

Exclusive Summary:
Aspire Mining Limited (AKM) is the largest coal tenement holder in Mongolia’s Northern provinces and is focused on identifying, exploring and developing quality coking coal assets.

Aspire is the 100% owner of the world class Ovoot Coking Coal Project (Ovoot) which is the second largest coking coal project by reserves in Mongolia. The Ovoot project development is dependent on the construction of the Erdenet to Ovoot railway which is being progressed by Aspire’s subsidiary Northern Railways LLC (Northern Railways).


Production from the Ovoot project can coincide with the commissioning of the Erdenet to Ovoot railway.

Aspire also currently owns a 50% interest in and is the operator of the Ekhgoviin Chuluu Joint Venture (ECJV), and has an option to increase its ownership to 100% of the ECJV. The ECJV owns a 90% interest in the Nuurstei Coking Coal Project which has a 12.85 million tonne JORC resource.


Now the Bonus:
Aspire’s rail subsidiary, Northern Railways LLC received the green light to build and operate a 547 kilometre railway to extend Mongolia’s national rail network from the city of Erdenet to its flagship Ovoot Coking Coal Project in Mongolia.

Northern Railways is progressing the negotiations and completion of a bankable feasibility study, funding, EPC contract, applications for licenses, permits and approvals to commence railway construction.

FSDI has commenced the first stage of a Bankable Feasibility Study, which is due for completion by 31 December 2016.

LOI for funding has been signed with CDB (China Development Bank), which is a Chinese Government owned policy financial institution & it is the world’s largest development finance institution and the largest Chinese Bank for foreign investment and financing cooperation, long term lending and bond issuance. It was ranked 87th on the Fortune Global 500 in 2015.

The inclusion of the Erdenet to Ovoot railway in the Northern Rail Corridor enhances the value adding opportunity for Ovoot Coking Coal to be blended with Erdenes Tavan Tolgoi non coking coals.

All this just for MC of $27m. AKM came down from 40c to 0.007 due to uncertain future & risk with Ovoot Coking Coal Project, overall downtrend of Coking coal price & off course due to share dilution. But now cocking coal price has doubled just in short time plus Development of Ovoot looking to be de-risked with commissioning of the Erdenet to Ovoot railway, which again to be built by AKM itself and so believe $27m is way too cheap for the company, who's just slowly ticking the boxes.

MC $27m and over 70m shares traded in past 2 days with average of 2.9c. I believe the bigger player who were in control of RRP after first day rise - are playing similar game here and both of these stocks being accumulated hard. However, RRP already trading at $80m MC while AKM still beginning its move toward $50m and so believe AKM has more room to move up from here.

I am sure it will move up in coming days and once we break through 2.7c; this will open up the flood gate through to 4.1c :

  

All IMO and just putting my analysis and research. Please DYOR and take wise decision .

Good luck.
J