NYSEAM:COE - Post by User
Post by
moneymotivatoron Mar 17, 2011 2:14am
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Post# 18297231
interesting new investor fact sheet
interesting new investor fact sheethttps://www.canamcoal.com/i/pdf/CanAm_FactSheet.pdf
Anyhow thought it was interesting to mention that Targetos production is Thermal whereas the marjority of our (Can Am's) current production is
metallurgical. It appears metallurgical is definetely the more valuable of the two just by looking at the proportion of production to sales in the comparison on the bottom of the page. However thermal could be on an somewhat of an uptrend right now will try and get more recent data to find out what exactly is going on in the markets for both, still not that as I important I believe as they mention "65% of Targetco’s thermal coal is locked into a contract through 2015"
https://www.bloomberg.com/news/2011-01-10/australian-thermal-coal-price-rises-for-sixth-week-on-flooding.html
If everything goes as planned long-term eventually:
"Company will have secured access to annual production in excess of 1 million tons per year by the year 2013"
Looks can be deceiving as the majority of that tonnage will come from the less valuable thermal coal , maybe not that next CMK as I originally hoped but still a decent growth opportunity here.
Also interesting to see Mackenzie (Powercorp) finance the proposed deal not to familar with them but they appear legit from what I can gather. What are your guys thoughts on the proposed financing ? with respect to potential dilution ? max I see here is 62.5 million shares fully outstanding from this potential deal if everything gets converted including warrants ((1666+3333)*10000) and 12.5 million given to Targetco, just a guess here as this aint your typical run of the mill type bought deal share issue IMO.
Cheers and Happy St.Pats Day GLTA!
TripleM