Colonial Coal {TSX.V: CAD}

Shares in Colonial Coal rose 20% on Friday on strong volume, with 191,000 shares traded.

CAD had not released any news, so maybe this was a positive reaction to the Flatbed PEA released on the 12th November?

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CAD drill rig at Flatbed.

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 Colonial Coal {TSX.V: CAD}

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Shares in Colonial Coal rose 20% on Friday on strong volume, with 191,000 shares traded.

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CAD had not released any news, so maybe this was a positive reaction to the Flatbed PEA released on the 12th November?

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The market’s reaction to a very positive PEA from the Flatbed project was somewhat muted, although it has to be taken against the backdrop of falling prices across the sector, so maybe not a huge surprise?

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CAD now has a PEA for both of their projects, and around a CAD $2.4 billion combined value, against the current market cap of some CAD$ 50 million!

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So once takes into account the value of the assets against the market cap, it’s no real surprise the stock price has jumped up, and it looks like a delayed reaction to the recent excellent PEA news.

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Looking ahead, at the current healthy margin against FOB, Colonial looks amazingly cheaply valued, and perhaps we shouldn’t be surprised if the stock rerates strongly from this point.

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