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Metrocoal

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bought some Metrocoal shares

http://metrocoal.com.au/

 

why:

 

 

Mining Top 25 for 2011 - Part 1

http://www.caesarsreport.com/freereports/C...p2011_Part1.pdf

 

Mining Top 25 for 2011 - Part 2

http://www.caesarsreport.com/freereports/C...2011_Part-2.pdf

 

Mining Top 25 for 2011 - Part 3

http://www.caesarsreport.com/freereports/C...2011_Part_3.pdf

 

clipboard01ct.jpg

 

 

nice post:

 

http://www.topstocks.com.au/stock_discussi...=581709#p581709

 

I thought I'd give you a heads up on Metrocoal. Take note that I picked WDS when it was sleeping. Rising from low 40's to a recent high in the low 70's. All in the space of a month if I recall correctly. Anyway, the Metrocoal story without going into too much detail about coal reserves and resources.

 

I'm looking at MTE purely based on a value proposition.

 

In summary (basic):

 

162,936,212 shares on issue.

 

80,000,000 shares are escrowed to Dec 2012 held by parent company Metallica Minerals (MLM) . Therefore these shares cannot be traded on market until that time. I guess you could say this is a good thing. Some well respected institutions are also on the share register.

 

Another 13,747,451 shares has recently been issued to institutions at 30 cents each raising some $4,124,235

 

Therefore the company has 176,683,663 shares on issue. At current price of 29.5 cents it is capped at just over $52,000,000.

 

It has $12.8 million in the bank (as at 31 Oct) plus say another $4.0 million (after share issue costs) = $16.8 million. They have a $1 million debt to parent company which will be converted to shares at some stage. (no problem here)

 

Don’t forget that it has given away to a Chinese company 51% interest in the Exploration permit (EPC1165 – the one next door to where Macmahon is coal operator) for $30 million. So MTE still owns 49% of this tenement. It has basically sold half of this interest for a Chinese company to spend $30 million with MTE not needing to spend anymore until all this $30 million has been expended. This tenement in Columboola (EPC1165) only represents 12% of MTE’s total current EPC portfolio. It has other exciting tenemants in the Surat Basin.

 

There is interest from other parties for equity and jv’s. According to Annual report some of these companies seem to be Arrow Energy and Shell CSG.

 

So effectively, the way I look at it is that MTE has no effective debt. $16.8 million in the bank plus $30 million (from Chinese company). Total $46.7 million in the bank. Currently at 29.5 cents it has a market capitalisation of around $52 million.

 

You are paying virtually nothing for the rest of MTE's assets which represents more than 8 times the size of EPC 1165.

 

I have no real understanding of UCG or coal cost and revenue etc, just looking at it from a value basis. I can only assume what they say is correct and if it is correct, over time this company will become similar to a Linc Energy.

 

They have existing tenements that actually overlap with the likes of Arrow, Shell and are also next door to Xtrata. I think it’s a safe play but still speculative.

 

Remember, you buy when others are not taking notice. Coal will be used for years and gas is possibly also the future. MTE have coal tenements and where there is coal there is gas (CSG). CSG is also known as LNG/Natural gas.

 

Don’t forget also that natural gas is at all time lows. Supply is more than demand but it will change in time like every other commodity. All cyclical. A rising gas price will only benefit the CGS/UCG players.

 

I do like this company the more I look at it. Management seem to be conservative in their spending thus far and have delivered on their strategies thus far.

 

Normally I like companies that make money but this has lots of potential and does not need any more money for a while to carry out its short and medium term objectives.

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Is BOA going into coal mining? Sorry for being dumb.

 

bought form hotcopper board:

 

IMO Columboola will be the biggest coal mine in Australia hence why BOA/ML are controlling the SP and increasing their stakes in Metrocoal.....all it requires from us to benefit from this is patience.

 

By the way I forgot to let everyone know that I did get a reply from Theo to the question about progress at Columboola and apparently they had drilled 2 holes and were starting up again early February and were also starting drilling again at Bundi.

 

http://www.hotcopper.com.au/post_threadvie...6287815#6287815

 

logo.jpg

 

http://www.chinamining.org/Investment/2010...2514d38899.html

 

Updated: 2010-09-06

China Coal Got Greenlight To Explore Coal Resources In Australia

 

China Coal Import and Export, a subsidiary of China National Coal Group Corporation, received the Ministry of Commerce's approval to cooperate with Australia's MetroCoal on the Columboola project in Queensland's Surat Basin, reports secutimes.com, according to the State-owned Assets Supervision and Administration Commission's website.

China Coal Import and Export holds the majority stake and the Columboola project's coal seam capacity is expected to exceed 10 billion tons.

According to initial project plans, a mine with an annual capacity of 10 million tons will be constructed, and three additional mines will be built later on.

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breakout in Australia, good potential to go until around 50 cent

 

comment on HC-Board:

 

Don't be fooled by the 10Bt reports. Whilst they *may* have this kind of resource, MTE's immediate plans are to delineate ~1Bt from Coolumboola. Anything more would be a bonus at this stage.

 

As to the potential value of MTE, a good comparison IMO is BND. We are about 1.5-2 years behind, possibly less with the aggressive drilling programs.

 

Prior to June 2009, BND had a resource statement similar to what MTE have now. They were trading at $60-$80m. Once they announced their billion tonne resource (also a JV), BND doubled to ~$150m and have risen from there through their continued work in resource definition and confidence. They now have a market cap of ~$700m and are targetting WICET Stage 1 for 4mpta (MTE: WICET Stage 2 for 12mpta). All this in 18 months.

 

I feel that MTE are following pretty close to the BND story, only bigger and better. Confidence in the management team is a key factor here as well.

 

There will no doubt be dips along the way, but if you're like me, a long term view on this can potentially yield a "ten-bagger".

 

All IMO - as always, do your own research and make your own conclusions.

 

Bandanna Energy:

 

clipboard01cg.jpg

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Surat Basin Rail JV Partner Secures Strategic Investor

http://stocknessmonster.com/stock-quote?S=MTE&E=ASX

 

Regional mining boom worth $20b

http://www.themorningbulletin.com.au/story...rth-about-20b-/

 

Rail project to start next year

http://www.thechronicle.com.au/story/2011/...tart-next-year/

 

From HC-Board:

 

I don't know how this post will look like. I hope you will be able to understand it. The preview looks nothing like I would like it to look.

 

In response to your post, perhaps I can save you a bit of valuable time researching with the following compelling data regarding the undervaluation of MTE.

The following comes from a -Theo Psaros - presentation to brokers in Melbourne only 2 weeks ago. The below dates are based on 9th February 2011 calculations.

 

Cockatoo Coal M/C $544M - JORC 1,801Mt - Mkt Cap $0.31p/t

Bandana E.**** " $710M ---" * 1,479Mt - " " $0.48p/t

Northern E.*** " $227M -- " *** 565Mt - " " $0.40p/t

NuCoal Res.*** " $345M -- " *** 498Mt - " " $0.69p/t

Stanmore Coal* " $165M -- " *** 318Mt - " " $0.51p/t

Endocoal****** " $ 47M -- " **** NIL - " " $ - -

Guilford Coal* " $323M -- " **** NIL - " " $ - -

METRO COAL**** " $ 55M -- " *** 709Mt - " " $0.08p/t

 

I dare say the Metro Coal - Peer Company Comparison above might interest those contemplating buying MTE.

 

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

 

Another company for comparison is SMR (Stanmore Coal)

 

- Targeting WICET Stage 2 for coal export (same as MTE)

- Pure play, just like MTE

- Targetting 7Mtpa (MTE: 12Mtpa)

- 319Mt JORC Inferred with moderate exploration targets (MTE: 686Mt JORC Inferred and 23Mt JORC Indicated, with MEGA exploration targets)

- Primarily thermal, with some coking appeal (MTE: thermal)

- Cash position slightly better, $25m vs $15m, however MTE has an additional $30m from JV partner

 

- Market Cap at today's close is $150m (MTE: $60m)

 

Just goes to show that MTE is under the radar at the moment and how much potential it has in the short, medium and long term.

 

I will post more like this as they come to hand.

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still sleeping.

 

Dalby Herald Newspaper - 5 April 2011

http://metrocoal.com.au/uploads/05042011_Dalby_Herald.pdf

 

International Longwall Mining News magazine article reported on 1.4.2011

http://metrocoal.com.au/uploads/01042011_International_Longwall_News.pdf

 

Chibnchilla News 31 March 2011 reports - "MetroCoal Expanding Wandoan Coal"

http://metrocoal.com.au/uploads/110404_MC_Chinchilla_News.pdf

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Tomorrow I will buy some additional MTE-shares from my ASX:GDO profit-taking cash

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capture01kb.jpg

 

strong performance!

 

logo.png

TheoPsaros.jpg

http://www.queenslandexploration.com.au/who/member-profiles/theo-psaros/

 

 

http://metrocoal.com.au/about/corporate-directory/

 

Management:

Mike R O’Brien

– Chief Executive Officer

Theo J Psaros

– Chief Operating Officer

Neil Mackenzie-Forbes

– Exploration Manager

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1:45 pm Response to Indian Media Report

12:10 pm Trading Halt

 

'that discussions with companies are at a very early stage following the receipt of Expressions of Interest from a number of parties from China, Korea, Japan, India, Australia and the United States of America'

 

capture01wh.jpg

 

mineweblogo.jpg

 

Indian companies compete for $700m in MetroCoal coal assets

http://www.mineweb.com/mineweb/view/mineweb/en/page38?oid=130798&sn=Detail

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