Colonial Coal International {TSX.V: CAD}

The stock rose 26% on the day, with heavy volume of 293,000 shares traded, and no news released.

The price of coking coal rose to US$191.9 yesterday, or around CAD$ 249, well above the FOB price of Colonial’s coking coal of around CAD$130.

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 Colonial Coal International {TSX.V: CAD}

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The stock rose 26% on the day, with heavy volume of 293,000 shares traded, and no news released.

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The price of coking coal rose to US$191.9 yesterday, or around CAD$ 249, well above the FOB price of Colonial’s coking coal of around CAD$130.

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With around 700 million tons of premium hard coking coal, in the best jurisdiction, Canada, Colonial’s market cap of around CAD$ 45 million looks extremely undervalued given the asset value.

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At around 50c per ton, the assets are worth CAD $350 million, or around CAD$2 per share, making the current 33.5 cents price looks extremely undervalued in my opinion.

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