Corsa Coal Corp V.CSO

Pasting from IV

[Binkie]

Good information and perspective, thought it may be of interest 

Fair enough, but a good while back for just a small portion of what Corsa has, a Russian billionaire was content to pay US$1.3 billion: https://www.reuters.com/article/us-severstal-coal-idUSLM58701520080822 

Corsa bought it back for a tiny fraction: 

Corsa Coal to Acquire PBS Coals for US$60 Million from Russia’s Severstal: https://www.investingnews.com/daily/resource-investing/industrial-metals-investing/coal-investing/corsa-coa 
l-to-acquire-pbs-coals-for-us60-million-from-russias-severstal/ 

The reserves and resources at Corsa actually are very significant. See this if interested: 

https://www.corsacoal.com/_resources/pdfs/Final-TR-CORSA-Update-Report-w-Appendices-1-6-CCC115-2022-02-16-Locked-and-Signed.pdf 

"In summary, Corsa controls a total of 175.5 million measured and indicated in-situ coal resource tons. Of the total measured and indicated tons, 77% are measured and 23% are indicated. An additional 0.44 million inferred in-situ coal tons have been identified." 

Now take a look at page 5 of the March presentation: https://www.corsacoal.com/_resources/presentations/investor-presentation.pdf 

Acosta reserves are at 40 years of production at 362,000 tons a year. Casselman reserves are about 5 years at 500,000 tons a year. 

Meanwhile, the reserves report with very conservative price assumptions (dramatically lower than current market conditions) forecasts US$88 million of EBITDA for 2022. 

So they do have growth prospects that would require more capital, but they have what seems an excellent base, and a clean balance sheet, shareholders' equity well in excess of the current market cap, and a uniquely enviable location. 

How much would it cost today to acquire all their land and build their plants and properties? Easily significantly more than the booked cost of US$400 million. 

So I'm not seeing any realistic downside, all things considered, but plenty of near-term upside, and an exciting 2022. 

Cash costs were too high last quarter, but even with those cash costs they will do remarkably well simply masked on market conditions now and in the foreseeable future for met coal. 

There would be more reason for caution at a $2 share price. At sub $1? It should be a no-brainer. 

Not investment advice. Everyone should do their own DD.