RE:CAD.V 2022 YTD Average $2.30 4.6ml tradedYTD Update:
Colonial trading above 52wk average $1.81
CAD 52wk Feb 23,2021-22 Average $1.81 42ml shares traded on TSX.V 52wk Low $0.50 High $3.73
SGX AUS Coking Coal Feb 22, 2022 Futures price $439.33 / Dec 31, 2021 $327.00 +25.5% YTD.
Colonial Share price Dec 31, 2021 $2.62 / Today Feb 23, 2022 $2.01 - 23.3% YTD.
Only CAD news year to date issued new options priced at $2.29 only worth anything when shares are over $2.29.
Lower trading volume last few months and less than 100-200K shares still moving share price +/- $0.20 somedays 50k shares traded moving shares $0.20.
Talk on bloomberg again of TECK trying to sell 10-25% of 5.5bl tonne canadian coal business started process last year valued $8-$12bl my rough math has CAD worth on same metric about +10% of TECK business.
My Hypothetical:
Colonial purchase added bonus you would own the Colonial mine deposits and not just be a small minority 10-25% partner with TECK. If you buy 10-20% of TECK cost is maybe $1.2-$2.4bl if you buy 100% CAD for $1.2bl around $6.50 per share you save $1.2bl have full control.
Another option could joint venture CAD 50/50 for $600ml pay current CAD shareholders $2.00 div and invest $800ml, $400ml ea plus debt to build new mines. Total cost to joint partner $1bl upfront cost $600ml say India or Korea for $500ML 25% and 25% for Arch Resources or another US miner to buid and operate mines ask for $100Ml upfront and another $300ml over three years for construction. Can afford to pay back Arch $300ml over first 2yrs production, India get's an off take agreement and locked in price of $250-$300 per tonne on first $400ml of production. Profit split 50% to Colonial 25% to India/Korea and 25% to US owner operator. Would keep company majority 50% owned in Canada. India/Korea gets a secure new supply of quality Met Coal, BC Government get's more jobs and tax revenue.