Colonial Coal (TSX.V: CAD)
Tormont Investment Research has published an upbeat and updated research note on British Columbia based steelmaking (coking) coal exploration and development company Colonial Coal.
The rise in the price of coking coal has made an already undervalued asset even more compelling, with CAD’s coal in the ground being valued at around 13 cents per ton at the current market price.
|Colonial Coal||TSX.v : CAD|
|Market cap||C$146 m @ 84 cents|
|Location||British Columbia, Canada|
Colonial Coal Updated Research Note Published by Tormont Investment Research
Colonial Coal (TSX.V: CAD) – Tormont Investment Research has published an upbeat and updated research note on British Columbia based steelmaking (coking) coal exploration and development company Colonial Coal.
The rise in the price of coking coal has made an already undervalued asset even more compelling, with CAD’s coal in the ground being valued at around 13 cents per ton at the current market price, with the commodity itself priced at US$196.
Colonial’s FOB costs are around C$140 per ton, so quite a margin for what is traditionally a bulk tonnage low margin product.
Coal has become unpopular in the press and media, but many fail to realise there are two types of coal, that which produces power in a polluting way, and that which produces steel for all those necessities in life such as cars, trains, planes etc. etc.
Fortunately Colonial’s steelmaking coal will be required for a long time yet, as there is not yet a realistic alternative for steelmaking, and when one arrives, it will take a gargantuan amount of capital to replace all the existing steel mills around the world.
Tormont’s research note has updated the price of coking coal to reflect the current level, and also the Peace River region map to reflect the current ownership of the various projects.
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At the time of writing the author holds shares in Colonial Coal, bought in the market at the prevailing price on the day of purchase.