Any idea what company this is referencing?
From Tobin Smith, ChangeWave
Since July 2004, the company's main mine has produced pulverized
coal injection (PCI) and coking coal products -- both key
components in the steel manufacturing process.
And fiscal 2006 is off to a promising start. Its Q1 fiscal 2006
results (ending June 30) described progress on several fronts,
including a boost in coal production and the more favorable
restructuring of its current financial arrangements.
Some Q1 Financial and Operating Highlights (all dollar amounts are
Canadian):
* Revenues from coal sales were $13.47 million, representing
180,307 tons of PCI metallurgical coal product at an average price
of $74.73 per ton.
* Produced 206,267 tons of PCI product at a cash cost of $61.74
per ton. Cost of operations increased as a result of additional
fuel surcharges and higher-than-anticipated strip ratios for
mining activities in May.
* Operating profit for the quarter was $450,000 and positive cash
flows of $980,000 were realized from mining activities.
Notably, after the end of Q1 (July 2005), it completed a private
placement for 1.25 million common shares at $4 per share, netting
$5 million. These funds will allow the company to restructure its
current debt and to provide working capital for ongoing capital
projects.
But most importantly, they just inked a contract to sell 665,000
tons, ending in 2006 -- and this is just part of a 2 million-ton
deal with its major Chinese customer.
Overall, we're looking at sales of 1.2 million tons in 2005 and
approximately 3.5 million tons in 2006. But here's the big
difference: The stuff in 2005 is going for $50 a ton; and the
stuff in 2006 is going for $110-$120 a ton!
The world's energy scene is currently very favorable for a coal
company like this one. You gotta love it when the supply/demand
equation gets out of whack, my friend. It means big gains for
their bottom line and big investing profits for us!
Today, this stock is sold over-the-counter. Soon they'll apply for
listing on one of the regular exchanges -- likely the AMEX.
That'll give a big boost to the stock's exposure and share price.
Plus, this company is gearing up to play the China card in a
really big way.
We've got it pegged as a $12 stock in 12 to 14 months. Right now,
you can load up on the stock around $4. It's a microcap -- it's
not some sure thing. But the odds are squarely in our favor for a
200%+ gain from here.
You can get the full details on my favorite microcap coal play and
all of our current ChangeWave MicroCap Investor recommendations
at:
investorplace.com |
