Colonial Coal {TSX.V: CAD}

Rose 10% yesterday on strong buying.

We suspect fund buying, after the strong run and high asset value of CAD’s metallurgical (coking) coal located in the prolific Peace River coalfields in northern British Columbia.

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Colonial Coal {TSX.V: CAD}

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Rose 10% yesterday on strong buying.

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We suspect fund buying, after the strong run and high asset value of CAD’s metallurgical (coking) coal located in the prolific Peace River coalfields in northern British Columbia.

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It looks as though the market may finally be waking up to the massive undervaluation given to the assets that Colonial hold in their two projects, both of which are open to strike and depth, and have the potential to be upgraded.

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David Austin runs a tight ship at Colonial, so he’s not going to spend carefully managed money  expanding the resources for the sake of it when the market is undervaluing the current assets by such a margin.

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The appointment recently of Maxit Capital of Toronto suggests some corporate actoin could be on the horizon in my opinion.

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Maybe the sale of one asset could fund the exploration to it’s full potential of the other?  Just a possibility I have considered that may make sense, as drilling a large asset to reserve level is very costly indeed.

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The current activity and rise in share price suggests to me that the market may be considering the same.

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