JUNE 20, 2011, 10:15 AM ET
Goldman Sachs Likes the Prospects for Coal; Check Out Their Favorite names
Avi Salzman
Goldman Sachs analyst Andre Benjamin upgraded the entire coal sector to Attractive from Neutral on Monday, writing that he particularly likes thermal coal, which is used for heating and electricity (as opposed to met coal, which is used to make steel). Coal stocks have the potential for 35% upside, as they has trailed the S&P 500 by 13% since May 1 on concerns about growth in China and the U.S. But the outlook for thermal coal is particularly strong, Benjamin writes. High oil prices should help the stocks, as should a more favorable supply-demand balance. “We expect recent increases in thermal exports and lower production levels to persist, leading to near-normal thermal coal inventories by year’s end and forcing domestic utilities to sign baseload contracts for 2012 at prices above mid- cycle,” he writes. Met coal, however, could experience less favorable supply-demand trends. “While our view that met coal prices will remain above mid-cycle through 2013 is unchanged, we expect 2H2011 global steel data points to be seasonably weak and met coal prices to continue moderating as supply/demand loosens.”
He upgrades Patriot Coal (PCX) and Peabody Energy (BTU) to Buy from Neutral, but downgraded Walter Energy (WLT) to Neutral from Buy. He upgraded Consol Energy (CNX) to Neutral from Sell.
African Energy Raises A$15m to Accelerate Sese Coal Project
BeantwoordenVerwijderenMon, 18 Jul 2011 09:43:00
ASX : AFR Issued Capital 296,326,735 www.africanenergyresources.com info@africanenergyresources.com
AFRICAN ENERGY RAISES A$15M TO ACCELERATE SESE COAL PROJECT The Directors of African Energy Resources Limited (“African Energy” or “Company”) are pleased to announce the Company has successfully placed 30 million new ordinary shares at a price of A$0.50 per share to raise up to A$15 million (“Institutional Placement”). The new shares were primarily placed with institutional and sophisticated investors from Asia, Europe and Australia. Shareholder approval is not required for the Institutional Placement.
Helmsec Global Capital Limited acted as the lead manager for the capital raising under an exclusive mandate to provide financial and related marketing advice over a 12 month period. The proceeds from the Institutional Placement will be used as follows: Infill drilling at Sese project to Measured status A$2m Sese trial pit & bulk samples A$1m Feasibility Studies at the Sese coal project A$6m Sese Environmental Impact Assessment A$1m Working capital & transaction costs A$5m Total A$15m The capital raising was strongly oversubscribed despite difficult market conditions and is a testament to the quality of the Sese project. The funds raised will allow the Company to substantially advance the Sese coal project with a view to potential development in late 2012.
Sese Coal Project
BeantwoordenVerwijderenLocation of Sese coal project in Botswana.
Drill status plan showing the completition of drilling in Block-A and Block-C. Block-B drilling will commence in January 2011.
Drilling results for Block-A showing the drilled coal thicknesses (m). All holes were drilled vertically. The coal dips at 1-3 degrees to the southwest, so thicknesses are close to true width.
Drilling results for Block-C. All thicknesses approximate true widths (m).
Summary
The Sese coal project in eastern Botswana is wholly owned by African Energy Resources Ltd. The project is 50km to the south of the mining hub of Francistown, and is immediately west of the existing rail, road and power corridor which runs the length of eastern Botswana, and which connects through into neighbouring Zimbabwe and South Africa and on into nearby Zambia and Mozambique.
The coal deposit occurs within Prospecting Licence PL96/2005 which has been recently granted its second extension until 30th September 2012. African Energy has also made additional tenement applications to secure the majority of the up‐dip and down‐dip extensions to the known coal seams.
A drilling campaign on the project is currently in progress to delineate a JORC compliant inferred resource. It is expected that the resource will be announced in April 2011, and that this resource may exceed the Exploration Target* of 1.5 billion tonnes of thermal coal.
ik was benieuwd of je Prophecy Coal nog volgt. Ze zitten niet alleen op 1.2 miljard ton thermal coal maar ze hebben ook 45% aandelen in Prophecy Platinum --> da is afgelopen week gestegen van 0.8 naar 3.30 door (ondermeer) +1M ounce PGM. Dat heeft de markt nog niet door want PCY heeft 100M cash en aandelen en een marketcap van 140M. Ook NI heeft volgens mij 1M aandelen in NKL.
BeantwoordenVerwijderenStockhouse forum:
BeantwoordenVerwijderen...................
$3.30 NKL = $0.82 PCY
green242
7/20/2011 2:24:24 AM | Post #29990175
NKL is the way to play this surge if you believe NKL is going to keep getting higher. However, with PCY owning 45% of NKL shares, and PCY not keeping up with the jump in NKL's prices, it might make sense to throw a little cash at PCY in the morning. The jump at the open should be a good one.
Market Cap before: $99,232,164
Market Cap at close Tuesday: $137,398,381
Market Cap should be: $99,232,164 plus $57,600,000 = $156,832,164
So...either the market thinks PCY's coal operation suddenly decreased by 20+%overnight, or this puppy is going to catch up in a huge hurry to NKL inthe morning. If NKL opens at $3.30, PCY should open at $.82.
Zou die jump van Cardero hier ook mee te maken hebben? 10x gem. volume, +10%
BeantwoordenVerwijderenGroet, Snoek
Prophecy Secures Far East Russian Sea Port Allocation and Provides Ulaan Ovoo Mine Production Update
BeantwoordenVerwijderenSymbol Price Change
1P2.F 0.67 +0.04
Tuesday June 14, 2011, 9:33 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 06/14/11) - Prophecy Coal Corp. ("Prophecy") (TSX-V:PCY - News)(OTCQX: PRPCF)(Frankfurt:1P2 - News) (the "Company") is pleased to have entered into an arrangement with the Port of Sovgavan in the State of Khabarovsk, Russia whereby Prophecy will have initial access to port allocation of 25,000 tonnes per month starting in June, potentially expandable to 50,000 tonnes per month, representing 300,000 to 600,000 tonnes annually.
Prophecy will also be assigned a coal storage area at the port. This arrangement provides Prophecy's Ulaan Ovoo thermal coal mine with immediate access to the Asian seaborne export coal markets. The Sovgavan Port is strategically located at the Russian Far Eastern seaboard. The port is privately owned and can accommodate seagoing vessels up to 160 meters in length with the depth of loading site of 9.5 meters. The port has loading capacity of 6,000 tonnes per day and direct connections to Trans-Siberian railroads and uncongested Russian state highways.
Securing of the port opens Prophecy to a significant number of coal buyers, and the Company is currently placing top priority to conclude rail transport within Russia and coal off take contracts.
Prophecy's Ulaan Ovoo mine commenced production in 2011. Year to date the mine has produced a total of 200,000 tonnes of coal, currently being stockpiled. The average quality is 4,200 kcal/kg NAR with 5% ash and 0.5% sulphur. Those attributes compare favorably to the coal being purchased by local Russian and Mongolian power plants. Within the inventory, there are 50,000 tonnes of 5,200 kcal/kg NAR coal with 5% ash and 0.5% sulphur, which are stockpiled separately at the mine and at the Sukhbaatar rail siding, destined for Sovgavan port.
In total, over $25 million has been committed or invested in the equipment and commissioning of the mine. In May, Prophecy received its second full set of mining fleet. The Company expects to receive by June 30, 18 Skania coal transport trucks, which are expected to reduce transportation costs from hauling coal from the mine to the Sukhbataar rail station. The company going forward expects higher production ratio of 5,200 NAR coal in relation to total production as the mine gradually reaches steady state.
With respect to the diesel rationing currently being undertaken by the Mongolian government, Prophecy is monitoring its diesel supply closely and optimizing production rates to sustain mining and coal transportation activities for the remainder of 2011.
Prophecy's Ulaan Ovoo coal mine has a measured and indicated mineral resource of 208 million tonnes (Measured 174 mt, Indicated 34 mt) detailed in a NI-43-101 technical report by Minarco Mine Consulting dated May 8, 2009.
Ik heb mij de laatste dagen verdiept in Prophecy coal, en ben erg enthousiast geraakt.Naast de strategische ligging vlak bij China, het goede en stabiele ondernemersklimaat in Mongolie is het bedrijf extreem goedkoop. De productie is al op gang, is goedkoop, en de waardering is laag gezien de beurswaardering en de reserves. Als je van de beurswaardering de waarde aftrekt van de cash en de beleggingen, ong nu, na de daling van NKL-platinum 85 miljoen, bij een beurswaarde voor het totaal van 130 miljoen. Voor de kolen blijft dan helemaal een extreem lage waardering over. Onterecht. Dit vraagt om ontdekt te worden.
BeantwoordenVerwijderenRober
Overigens heb ik mijn belang in de NKL-platinumtak vandaag weer op het oude niveau gebracht, na de eerdere verkoop op 5,40.
AUGUST 1, 2011, 3:58
BeantwoordenVerwijderenPeabody and Arcelor Go Hostile With Macarthur Bid
Peabody Energy and ArcelorMittal, the world’s largest steelmaker, took their bid for a controlling stake in Macarthur Coal hostile on Monday, after failing to reach an agreement with Macarthur’s management over an offer that values the company at $5.2 billion.
The 4.7 billion Australian dollar deal, or the equivalent of 15.50 Australian dollars a share, is unchanged from an offer the two companies made last month, prompting the Macarthur board to tell its shareholders to take no action on the proposal.
Macarthur said Monday that it would have backed a 16 Australian dollar-per-share bid, the same level at which Peabody bid for the coal miner last year, but only on certain conditions. They included an automatic increase of the offer to 18 dollars per share if the suitors won more than 90 percent of Macarthur shares; an additional dividend of 98 Australian cents per shares above the 16 cents already planned; and allowing Macarthur to seek other buyers.
Keith DeLacy, chairman of Macarthur, said the present bid appeared “to be an opportunistic attempt to acquire Macarthur at a time of global economic volatility and regulatory uncertainty in Australia.”
The country is considering implementing a carbon tax and a resource tax, both of which would hit the mining sector.
Peabody, for its part, would have bid 16 dollars per share if Macarthur had granted it the exclusive right to buy the company. It has described its current offer, however, as “compelling.”
“We have decided to take this attractive offer directly to Macarthur shareholders,” Gregory H. Boyce, head of Peabody, said in the company statement.
...........................................
commentaar: het begint 'mode' te worden bij staalfabrieken om kolen- en ijzererts-mijnen op te kopen om hun grondstoffen veilig te stellen; dat kan nog interessant worden.
Only 9 km apart, the Chandgana Projects consists of Chandgana Tal and Chandgana Khavtgai coal properties and are part of the same coal deposit
BeantwoordenVerwijderen1.2 billion tonnes of measured & indicated coal resource (NI 43-101)
Consists of a shallow, 38 - 45 metre thick coal seam
Coal quality is well suited to feed an on-site 600 MW mine mouth power plant, with extension to eventual 4,200 MW
Low ash (12.49%), very low sulfur (0.68%) and with a Calorific value of 4,354 kcal/kg
Strip ratio over entire resource is 1.9:1
thermal coal
Proximity to infrastructure, Chandgana is within 160 km from rail, 45 km North of the proposed railway, 16 km from paved highway, and 150 km from 2x220 kV power line connecting to the main Mongolian grid
Application has been submitted for a 600 MW power plant license (Expected Q4-2011)
Receipt of the bankable feasibility study (expected Q4-2011)
Commence negotiations of a Power Purchase Agreement (negotiations expected to start Q4-2011)
On February 8, 2011, Prophecy obtains full mining license for its 141-million-tonne Chandgana Tal coal deposit.
On November 15 ,2010, Prophecy receives the approval of the Detailed Environmental Impact Assessment (DEIA) pertaining to the construction of a pit-mouth 600 MW coal fired power plant by the 1.2-billion-tonne Chandgana Coal Project.
On August 16 ,2010, Prophecy reports the successful drilling of its Chandgana Khavtgai property, reporting an increase in the total measured and indicated resource of 1,211 million tonnes.
On June 21 ,2010, Prophecy reports the successful completion of its spring exploration program on its 100% owned Chandgana-Khavtgai license in Khentii aimag (province), Mongolia. The work program consisted of 12 drill holes for a total of 2,205 metres including 903 metres of core drilling, and five lines of seismic geophysical survey for a total of 7.4 line km. Updated NI 43-101 resource report is expected by August.
http://www.prophecycoal.com/project_chandgana.php
VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/17/11)- Cardero Resource Corp. ("Cardero" or the "Company") (TSX: CDU.TO - News)(AMEX: CDY - News)(Frankfurt: CR5.F - News) announces that its wholly-owned subsidiary, Coalhunter Mining Corporation ("Coalhunter"), is commencing its 2011 field program, which will encompass resource definition drilling, engineering studies and environmental baseline studies, at the Carbon Creek Metallurgical Coal deposit ("Carbon Creek") located in the Peace River Coal Field of north eastern British Columbia. In addition, a Preliminary Economic Assessment ("PEA") is in progress and is expected to be completed in the fourth quarter of 2011.
BeantwoordenVerwijderenThe Company recently announced receiving a NI 43-101 resource estimate from Norwest Corporation on the Carbon Creek Metallurgical Coal deposit which outlines 114.0 million tonnes of measured and indicated, plus an additional 89.1 million tonnes of inferred, coal with an ASTM coal rank of mvB (see News Release NR11-09, June 8th, 2011).
Field Program Details
Coalhunter has received the required regulatory permits to commence its 2011 field program, which will include approximately 14,000 metres of core (46 holes) and rotary (19 holes) drilling. The 2011 program is designed to upgrade all deposit-related data to full feasibility level. Highlights of work proposed to be completed in 2011 are outlined below:
-- Resource Definition Drilling - data collection to update the existing NI
43-101 resource estimate:
-- Aiming to convert portions of the existing resource into the
Measured & Indicated categories
-- Intending to increase the global resource by including additional
coal seams in the resource estimation
-- Geological Studies - collection of surface, structural and drillhole
data to enhance the current geological model
-- Coal Analysis & Marketing - obtain a large coal sample from drill core
for coal quality analysis to:
-- Determine clean coal product specifications
-- Estimate potential market and pricing
-- Engineering Studies - Undertake detailed work for inclusion in
feasibility-level mine design, including:
-- Geotechnical studies to fully assess surface and underground mining
ground conditions utilizing consulting engineers and advanced down-
hole geophysical methods
-- Hydrogeological assessment of fault structures and groundwater
conditions
-- Environmental Baseline - data will be collected over the coming 12
months designed to meet and exceed regulatory requirements for
environmental baseline data
-- Stakeholder Engagement - ongoing consultations with stakeholders,
including First Nations' groups
Preliminary Economic Assessment
In addition to the ongoing feasibility-level data collection, Coalhunter has retained Norwest Corporation to complete a Preliminary Economic Assessment ("PEA") on the Carbon Creek Metallurgical Coal deposit. This important study will provide the first 43-101-compliant indications of potential project economics and it is anticipated to be completed in the fourth quarter of 2011. The PEA will be based on historic information compiled by Utah Mines Ltd. between 1970 and 1981, which includes data from 296 rotary and diamond drill holes totalling nearly 26,000 metres, plus the nearly 2,000 metres in 8 drillholes from the 2010 drill program completed by Coalhunter.
Prophecy Makes New Coal Discovery 17 km From Its Ulaan Ovoo Coal Mine in Mongolia
BeantwoordenVerwijderenVANCOUVER, BRITISH COLUMBIA--(Marketwire -08/17/11)- Prophecy Coal Corp. ("Prophecy") (TSX-V: PCY.V - - the "Company") announces today that it has intercepted a 19-meter-thickness coal seam at the newly acquired Ilch Khujirt property ("Ilch"). The 4,773-hectare Ilch property is located 17 km northeast of Prophecy's producing Ulaan Ovoo coal mine. It is contiguous to Prophecy's existing exploration license covering 7,392 hectares.
Prophecy Drilled Hole RHJ-11-01 on Ilch and encountered the following coal seams:----------------------------------------------------
Gross Seam Net
Depth (m) Thickness (m) Thickness (m)
----------------------------------------------------
41.2 3.0 3.0
----------------------------------------------------
48.5 0.5 0.5
----------------------------------------------------
69.3 19.4 15.0
----------------------------------------------------
Assay results (Air Dried Basis) of the coal core are - inherent moisture 20.96%, ash 14.52%, volatile matter 29.83%, fixed carbon 34.69%, calorific value 5,130 kcal/kg and total sulfur 0.35%. These are preliminary results because core recovery was poor and additional drilling is needed. This license was considered prospective for coal as is Prophecy's adjacent Khujirt license. Due to its shallow nature, the coal seam has the potential to be mineable. This new information is being reviewed and additional surface mapping will be performed to plan additional drilling.
Prophecy has the right to acquire 100% ownership of Ilch for US $2 million within the first year, or US $4 million in the second year after the agreement signing (see the news release of May 4, 2011). Drill Hole RHJ-11-01 confirmed the presence of coal, provided coal for assay, and provides information to plan future exploration.
Press Release Source: Prophecy Coal Corp. On Monday August 29, 2011, 8:30 am EDT
BeantwoordenVerwijderenVANCOUVER, BRITISH COLUMBIA--(Marketwire -08/29/11)- Prophecy Coal Corp. ("Prophecy") (TSX-V: PCY.V - News)(OTCQX: PRPCF)(Frankfurt: 1P2.F - News) (the "Company") announces today that it has signed coal sales agreements with Mongolian and Russian buyers totalling 92,000 tonnes.
In particular, 22,000 tonnes of coal have been sold to Energy LLC, a company registered in the Buryatia Republic of the Russian Federation. This coal will be consumed in local Buryat power stations and boilers. During the next 60 days, the coal stockpiled at Sukhbataar rail station will be loaded and railed cross-border into the Republic of Buryatia in Russia via Naushki. Energy LLC had imported a landmark trial shipment from Prophecy in June.
The remaining four coal purchasers are two local Mongolian companies and two Mongolian government power plants, committing to buy a minimum of 70,000 tonnes to be delivered in 2011. Prophecy expects to deplete its coal stockpile and operate continually to meet the off take commitments.
John Lee, CEO and Chairman of Prophecy Coal states: "Ulaan Ovoo's clean coal with its low ash (8%) and sulphur (0.5%) is highly desired. We are making steady and solid progress to establish Ulaan Ovoo as a recognized coal supplier in local and international markets."
Ulaan Ovoo is now operating on 100% Company owned new mining fleet and coal transportation trucks.
The Company would like to thank the Mongolian local community and government in helping turn Ulaan Ovoo into a successful mine and reaffirm its commitment to supply coal to local power plants this coming winter.
VANCOUVER, BRITISH COLUMBIA--(Marketwire -09/15/11)- Prophecy Coal Corp. ("Prophecy") (TSX-V: PCY.V - News)(OTCQX: PRPCF.PK - News)(Frankfurt: 1P2.F - News) (the "Company") announces today that its Chandgana Power Plant Project ("Project") has been officially endorsed by the Mongolian Ministry of Natural Resources and Energy. The Mongolian Energy Regulatory Authority ("ERA"), in charge of power plant license issuance, has received the endorsement and is expected to issue a final response to Prophecy's license application in Q4, 2011.
BeantwoordenVerwijderenThe request for licensing of "Construction of Energy Buildings and Installations", submitted by East Energy Development LLC, a wholly-owned Mongolian subsidiary of Prophecy, in April, 2011, was determined to be in full conformity with Clause 2 of Article 12, Energy Law. The company has undergone a rigorous power plant permitting process, which included Environmental Impact Assessment approval by The Mongolian Ministry of Nature and Environment, and support from the Mongolian Scientific and Technical Council. The power plant will be built right next to Prophecy's permitted Chandgana Tal Coal Project.
Results from the Power Plant Feasibility Study by Evonik Industries and the Chandgana Tal Mine Study by Leighton Asia are expected in Q4 2011. In parallel, Prophecy has been in discussion with a number of potential Engineering, Procurement and Construction (EPC) contractors with the goal of finalizing EPC selection expeditiously after the power plant license is obtained.
Prophecy's cash position and equity holdings total over US $90million as of September 1, and the company expects to fully fund the Chandgana project studies through to project financing.
Prophecy appreciates the support from the Mongolian Ministry and the community at large. The company looks forward to making the Chandgana Power Plant a reality and helping satisfy Mongolia and the region's energy needs.
Alpha Natural Resources Down 74% From Its Jan 2011 High: Time To Buy
BeantwoordenVerwijderen1 comment | October 3, 2011 |
I recently contributed an article on 4 compelling BUY ideas in the coal sector that attracted a huge number of page views.
In this piece, I focus on 1 of the 4, Alpha Natural Resources, (ANR). First and foremost, investors are asking what has sparked the severe beating in the stock. A combination of company specific factors and fears of a global double-dip recession are the main reasons. Yet ANR is down 74% from its January 11th high, and 62% from July 25th. Is all the bad news priced into the stock? Investors should Buy ANR stock, not necessarily because it's down so much, but because it's trading well below the fundamental value of its assets.
Recall from my previous article that pro forma for ANR's acquisition of Massey Energy (MEE), Alpha is now the 3rd largest producer of coking coal in the world. The combined company has 5 billion tons of coal reserves, of which 1.7 billion tons are coking coal. Alpha is the most diversified producer in the U.S. with significant coal production in the PRB, northern and central Appalachia. The company also has access to the most export capacity of any U.S. producer at 25mm-30mm tons. On paper, ANR is a powerhouse in the coal arena.
Yet to repeat, ANR stock is down 74% from its January, 2011 high. To put that in perspective, during the financial crisis ANR stock was down 85%. Since then, ANR acquired Massey Energy. MEE was a troubled company after a tragic mine accident in 2010. Did ANR make a big mistake by buying MEE? Perhaps. Clearly ANR paid too much for MEE. But Massey had some good and bad coal mines. The good ones will remain open, the bad ones will be shut down. According to management, the combined company will capture synergies worth $250mm-$300mm by 2013. On an NPV basis, the synergies are probably worth $1 billion, which is a lot compared to the current enterprise value of $6.8 billion.
The fear in the market is that not only did ANR pay too much, but that they also bought a barrel of rotten apples that's destroying shareholder value. I feel that the acquisition was poorly timed, but that once it's fully integrated, ANR will be a stronger company. A mitigating factor to the integration mess is that by rationalizing the combined portfolio of coal assets, there will be less coal production in central Appalachia going forward. The reduced supply should be supportive of coal prices in the region.
2)
BeantwoordenVerwijderenOf course, that doesn't change the fact that the integration will be both more costly and take longer than has been communicated to investors. This is a dark cloud hanging over management. The significant 3rd quarter earnings warning served to refocus everyone's attention on the integration. As bad as all of this is, I argue that the news is largely priced into the stock price.
Analysts have weighed in with lower price targets and reduced EBITDA estimates for 2011-12. It appears that the average reduction in 2012 EBITDA is about 11%-12%. According to Bloomberg, the consensus for next year's EBITDA is now $2.065 billion and the EV/EBITDA multiple is 3.3x. Unless one thinks that the new consensus is still way too high, ANR is trading at a fundamentally cheap valuation. If EBITDA estimates are cut a further 15% to $1.755 billion, then next year's EV/EBITDA multiple would be 3.9x. 3.9x is not a multiple that's difficult to defend.
To wrap this up, if the global economy is headed for a double dip recession, then an investment in Alpha, (or for that manner hundreds of other natural resource and cyclical names) will be a poor one. However, given the magnitude of the sell-off in ANR, I believe that it could outperform the market on a relative basis. On an absolute basis, ANR could rebound substantially if global tensions regarding Europe and China subside somewhat in the 4th quarter. In that event, a one-third point recovery from the July 25th level does not seem unreasonable. That would take ANR back to $27.5 per share and generate a return of 55%.
Disclosure: I'm long Jan-2012 $22.5 call options. I am long ANR (Peter Epstein).
--------------------------------------
commentaar: ANR lijkt mij een hele mooie overname-kandidaat.
1. Prophecy Coal Corp. (TSX-V:PCY)
BeantwoordenVerwijderenIt has been a very eventful year for Prophecy Coal. A $42 million public financing, the spin-off of sister company Prophecy Platinum (TSX-V: NKL) and now the challenge of managing growth in the face of volatile markets. Lately, the markets have had a major impact on the company's share price. Prophecy is currently trading at $0.44 per share which yields a market cap of roughly $90 million. Currently, with $64 million in shares of Prophecy Platinum, $40 million in property and equipment; and a little less that $10 million in cash on the books (as at June 30th, 2011), you are getting the company's Mongolian coal assets and Canadian mineral properties for, well, less than free.
In July, 2011 Prophecy Coal announced a defensive plan to give the company's shareholders and directors time to consider alternatives should a hostile takeover attempt emerge. This was primarily in response to the released of a new resource estimate by Prophecy Platinum for its Wellgreen property in Yukon. Shares of Prophecy Platinum surged after the news from $0.60 to $6.00 per share and subsequently greatly increased the asset value of Prophecy Coal. Prophecy Platinum is currently trading at $2.82.
Prophecy Coal reports more than 1.4 billion tonnes of thermal coal on two properties in Mongolia and began selling coal to Russian and Mongolian buyers this year. Situated next to China, the world's largest coal consumer, Prophecy's President & CEO, John Lee, thinks Prophecy is well positioned to take advantage of China's ever-growing energy requirements. We sat down with Mr. Lee to discuss the company's eventful year and to find out what is on the horizon in 2012 - CLICK HERE - for the interview.
http://www.highgradereview.com/5-coal-stocks-to-watch-1/
wo 19 okt 2011, 08:56
BeantwoordenVerwijderenMijnbouwers kopen alles wat los en vast zit
door EDWIN VAN DER SCHOOT
DEN BOSCH - Er woedt een wereldwijde overnamestrijd tussen de grote mijnbouw- en staalbedrijven. In tijden waarin steenkool in amper een jaar tijd in prijs verdubbelde, en ook eenvoudig winbare ijzererts schaarser wordt, is het opkopen van de complete bedrijfsketen de enige overlevingsstrategie geworden. Van het opgraven van ijzererts en steenkool tot de staalplaten die uit de hoogovens glijden.
Staalconcern Arcelor Mittal en mijnbouwer Peabody bieden op diens collega-mijnbouwer MacArthur, beide groot in kolen. Mijnbouwreus Rio Tinto biedt op Riversdale, eigenaar van veel Afrikaanse mijnen.
„In augustus vorig jaar kostte een ton steenkool $90, inmiddels is dat $200. Ik voorspel dat die prijs binnen maanden naar $400 gaat.” De Belg drs. Johan Geeroms is de Program Risk Director van het wereldagentschap van kredietverzekeraar Euler Hermes Benelux. In gewone mensentaal: hij is degene die indien nodig met de directies van de tientallen multinationals (meer dan € 500 miljoen omzet) onderhandelt over hun kredietlijnen.
De fusie en overnameoorlog die momenteel in de metaal en mijnbouw woedt, zorgt ervoor dat hij bijkans geen andere bedrijven meer ziet. Geeroms: „De staalprijs kent nu overigens een dipje, doordat er geen groei meer is in de oude wereld. Maar ik voorspel, dat is zeer tijdelijk van aard.” De hele aardkorst mag dan bomvol ijzer zitten, wil hij maar zeggen, het ene ijzer is het andere niet. „Men aast vooral op de goede, makkelijk winbare voorraden.”
De aanjager van de absurde prijsverhogingen van enkele grondstoffen is de bouwwoede in de nieuwe wereld. Geeroms: „China heeft zelf nog voor dertig jaar steenkolen in voorraad. Daarna ontstaan er echt problemen op de wereldmarkt.”
Het volledige artikel vindt u in de digitale Telegraaf.
Coal girls' hit paydirt at Queensland's booming mining towns
BeantwoordenVerwijderenby: Kathleen Donaghey Daryl Passmore Jackie Sinnerton From: The Sunday Mail (Qld) November 06, 2011
BIG BUSINESS: Sex workers have flocked to Queensland's mining town to take advantage of their booming local economies. Source: The Sunday Mail (Qld)
THEY are the coal girls happy hookers striking it rich in booming mining towns across the state.
Fly-in, fly-out "working girls" travelling from as far away as New Zealand to the resource-rich regions of Queensland and Western Australia are making as much money in one or two days as mine labourers earn in a week.
But the booming unregulated sex industry is ringing alarm bells, with fears for the women's safety and concerns over rising rates of sexually transmitted diseases.
The rich pickings up to $2000 a day are attracting scores of women to communities bursting with cashed-up men deprived of female company for weeks.
The women stay for a few days, or weeks, in hotels, motels or caravan parks before flying home or moving on to the next mining town in a circuit.
Researchers studying the impacts of the growth in fly-in, fly-out or drive-in, drive-out practices have even photographed a stretch limosine used by a prostitute as a mobile workplace in pub carparks.
It is legal for women to work as sole operators as long as they don't solicit in public. Local newspapers have columns of small ads from hookers announcing their arrival in town.
At least 15 privateers were working Emerald in central Queensland last week five on their first visit and attracting customers from outlying mining areas in Clermont, Dysart and Blackwater.
"If there's a new girl in the paper, a lot of guys want to try the new girl," said Kristy (not her real name), a petite blonde on her second visit from New Zealand.
The single mother, who charges $250 an hour working out of a neat cabin in a caravan park with the approval of management, said: "Yesterday I made $1000. Last time I was here I made $1750 one Friday.
"I went home with $16,000 and I was here for three weeks. I was really rapt because I have three children and the oldest is at university."
Brisbane woman Marilyn arrived on her first trip to town on Thursday and her phone ran hot with more than 50 calls on the first day in response to her "new to Emerald" advertisement.
China slashed 'inefficient' coal mining capacity by 231 mil mt in 2010
BeantwoordenVerwijderen(Platts)
Updated: 2011-11-16 09:04
China's Ministry of Industry and Information Technology said Tuesday announced that a total of 2,173 "inefficient" coal mines with a combined mining capacity of 230.61 million mt/year were shut down in 2010.
The closed mines were located in 23 provinces or regions.
Shanxi Province eliminated 169 million mt/year of inefficient coal mining capacity in 2010. Other provinces or regions that slashed capacity include Chongqing Municipality (9.58 million mt/year), Hunan Province (5.97 million mt/year), Heilongjiang Province (5.85 million mt/year), Yunnan Province (5.65 million mt/year), and Henan Province (5.2 million mt/year), Inner Mongolia (5.14 million mt/year), and Hebei Province (4.5 million mt/year).
China's national coal mining capacity is estimated to have exceeded 3.6 billion mt/year in 2010, as previously reported. In comparison China mined 3.24 billion mt of crude coal in 2010, up 8.9% on-year.
VANCOUVER, BRITISH COLUMBIA--(Marketwire -11/21/11)- Prophecy Coal Corp. ("Prophecy") (TSX-V: PCY.TO - News) (the "Company") is pleased to announce that its wholly-owned Mongolian subsidiary, East Energy Development LLC, has received the license certificate from the Mongolian Energy Regulatory Authority to construct the 600 MW Chandgana power plant.
BeantwoordenVerwijderenIn terms of size, this 600 MW (150 MW x 4) thermal power plant license is the first ever issued by the Mongolian government. To ensure strict compliance with Mongolian laws and regulations in obtaining this license, Prophecy retained a number of Mongolian and international consultants over the past 18 months. Considerable efforts were also spent on community relations.
Coal for the Chandgana mine-mouth power plant will be supplied from Prophecy's Chandgana Tal ("Tal") Deposit, for which the company has already obtained a full mining license. Tal contains 141 million tonnes of measured coal and is located just 9 km north of Prophecy's Chandgana Khavtgai project; a deposit with over 1 billion tonnes of measured and indicated coal.
Chandgana is 60 km from Underkhann city (East Energy System), and 150 km from Baganuur city (Central Energy System). Construction of transmission lines linking the two cities through Chandgana is seen as a top priority for a much improved and efficient national Mongolian energy system.
John Lee, Chairman and CEO of Prophecy states: "Prophecy has distinguished itself as the premier candidate to build the next Mongolian thermal power plant. There is an understanding among all stakeholders that Mongolia, being one of world's fastest growing economies, needs additional power. With the IMF projecting a deficit of over 600 MW by 2016, this need has become critically urgent and can no longer be delayed."
The license issuance paves the way to conclude Engineering, Procurement and Construction contractor (EPC) selection, Power Purchase Agreement (PPA) and Project Financing arrangement in 2012. Many of these discussions have been ongoing since early 2011. The target construction commencement date is Q1 of 2013.
"Prophecy has successfully navigated the permitting process through the diligent and concerted efforts of all those involved, and are grateful to the citizens and government of Mongolia for their continued support. With the above timeline in mind, we will focus on the next phases of development in order to achieve our goal of starting-up the first unit by January 2016. We look forward to working with all relevant agencies, authorities, and communities to commission the Chandgana plant. We are confident that our goals will be achieved within the stated timelines." Mr. Lee states.
Cardero Receives Draft Preliminary Economic Assessment For Carbon Creek Metallurgical Coal Deposit, NE BC
BeantwoordenVerwijderenBase Case Economic Assessment Returns Base Case $752M Post-Tax NPV8% & 29.3% IRR (75% Interest Basis)
Increases Measured & Indicated Resources by 46% to 166.7Mt
Increases Inferred Resource by 87% to 167.1Mt
Symbol Price Change
CDU.TO 1.13 +0.00
VANCOUVER, BRITISH COLUMBIA--(Marketwire -12/12/11)- Cardero Resource Corp. ("Cardero" or the "Company") - (TSX: CDU.TO - News)(AMEX: CDY - News) announces it has received results of the Carbon Creek Metallurgical Coal deposit ("Carbon Creek") Preliminary Economic Assessment ("PEA") from Norwest Corporation ("Norwest").
Cardero, through Cardero Coal Ltd., currently has 75% interest in the Carbon Creek Metallurgical Coal deposit, situated in northeast BC, Canada. Results of the preliminary economic assessment indicate that on a 75% basis and using a base case coal sale price of $185/t, the project returns a post-tax $752 million Net Present Value ("NPV") at an 8% discount rate and a 29.3% Internal Rate of Return ("IRR").
These results, together with higher and lower coal sale price assumptions, are outlined in Table 1, which also summarizes sensitivity of the project to operating and capital cost increases. Due to the scale of the project, it is economically robust and not especially sensitive to cost increases.
More detailed economic results are outlined in Table 2, together with all key assumptions used in the economic modelling.
After reviewing the Preliminary Economic Assessment, Cardero President & CEO, Michael Hunter, commented that "We are very pleased with the results of the Norwest Report. To begin, we have significantly increased our estimated resources and now manage one of the largest metallurgical coal deposits in Northeastern BC. Our 75% interest in the Carbon Creek joint venture has led to a NPV more than 6 times the size of our current market capitalization with a base case IRR of 29% predicated on an annual production rate of 2.9m clean coal tonnes per year. All in all, we have to consider this a tremendous result. I'm very proud of the of the excellent work the Cardero team has accomplished since taking over management of the asset in June 2011 and want to thank Norwest for their diligent work on our behalf."
VANCOUVER, BRITISH COLUMBIA--(Marketwire -12/21/11)- Prophecy Coal Corp. ("Prophecy") (TSX: PCY.TO - News)(OTCQX: PRPCF.PK - News)(Frankfurt: 1P2.F - News) (the "Company") is pleased to present the following year-end letter from John Lee, CEO and Chairman of Prophecy:
BeantwoordenVerwijderenDear Investors,
I would like to first extend to you my wishes for a safe and happy holiday season. It has been a very productive year at Prophecy Coal and I am pleased to share with you my positive outlook for 2012 and beyond.
2011 was highlighted by several accomplishments including:
-- Obtaining a landmark 600 MW Power Plant Construction License for our
flagship Chandgana Project
-- Obtaining the Chandgana Tal Mining License
-- Successfully commissioning a new fleet of mining equipment at Ulaan Ovoo ("UO")
-- Advancing UO to production with 230,000 tonnes of coal mined, and
130,000 tonnes sold.
-- Successfully completing first historical coal sales to Russia from
Mongolia.
-- Completing the spin-off of Prophecy Coal's core Canadian assets to
Prophecy Platinum
-- Graduating to the TSX Toronto Exchange
-- Strengthening the board and management team
Operations Update:
Our new executive director, Ronnie van Eeden, has been living in Mongolia since April, 2011. Drawing on coal-mining, operational experience gained at Eskom, one of the top 20 utilities in the world by generation capacity, Mr. van Eeden has increased efficiency and reduced overhead at our Ulaan Ovoo project. To provide additional stability and support, our team in Mongolia has been further expanded to include an ex-pat operations manager and a US-trained coal geologist. At the Christmas dinner for our Mongolian office last week, I counted over 30 staff in our new Ulaan Baatar office. It was clear to me that we have formed the critical mass of talent required to execute our objectives.
Ulaan Ovoo Mine Update:
In a period of just 12 months, Ulaan Ovoo has become a top coal supplier in Mongolia. In Q4 2011, the company sold 90,000 tonnes of coal to both Mongolian and Russian companies. We anticipate Ulaan Ovoo to produce 300,000 to 500,000 tonnes of coal in 2012, with increasing sales to Russia and at higher selling prices. We also expect the Russia border crossing at Zeltura (approximately 10 km from the mine) to open in 2012, which will reduce the transportation costs of our coal to Russia. While selling coal through the Russian eastern seaports proved to be complex and difficult in 2011, we will further pursue this option in the latter part of 2012, after we focus first on the Chandgana project. On the strategic front, we have received interest from potential joint venture partners to assist in the development of Ulaan Ovoo, which speaks to the merit of the project.
Chandgana Power Plant Update:
In November, we received the first 600 MW power plant construction license in Mongolian history. The mine-mouth power plant will be supplied with coal from our Chandgana Tal coal deposit, for which we secured a mining license in 2011. These licenses were obtained as a result of Prophecy's dedication and diligence for the past year. Our management team is also working through the holidays preparing and continuing to engage EPC (equipment, procurement & construction) contractors, investment bankers, banks, private partners, and the Mongolian government.
2)
BeantwoordenVerwijderenI am pleased to report that the feedback so far towards our Chandgana project from EPCs that visited the Chandgana site, and from Mongolia government, has been very positive.
Our goal is to sign an EPC contract and power purchase agreement (PPA) by mid-year 2012, and conclude project financing by the end of 2012. We have retained Linklaters of London, a leading global law firm with PPA experience, to assist Prophecy with finalizing the PPA. The PPA will provide long term, stable energy price and supply to Mongolia, as well as predictable cash flow to Prophecy's shareholders in return for the hard assets the company has contributed and risks undertaken. Construction is expected to start in 2013 with completion in 2016.
A number of shareholders and investors have expressed concerns regarding Chandgana project capex and equity dilution. After extensive discussions with bankers, investors, and EPC contractors, we believe the capex is manageable, if we can demonstrate the project offers a robust return. The key is debt financing from Chinese policy banks which can finance up to 80% of the required capital. To raise the remaining capital in equity, our potential partners and investors will rely on the financial model from the Evonik-Steag power plant feasibility study. The study is complete and will be publicly disclosed once we have cross-checked the financial model.
With a substantial coal resource in Mongolia and 22.5 million shares of Prophecy Platinum, Prophecy Coal is currently trading below its book value. While market volatility in the past several months has discouraged some of our shareholders, the Company has remained focused on unlocking the tremendous value of our 1.2-billion-tonne(ii) Chandgana coal resource, which is approximately 350 km from China, the world's most populous country and second largest economy. With outlined, near term catalysts in 2012 and long term, bullish fundamentals for energy prices in Mongolia and China, we believe Prophecy Coal presents a very compelling investment case.
I wish you a prosperous 2012 and I look forward to sharing our Company's progress and results with you in the months and years to come.
Sincerely,
John Lee
CEO and Chairman
Prophecy Receives A Positive Feasibility Study for the Chandgana Mine-Mouth Power Plant Project in Central Mongolia
BeantwoordenVerwijderenVancouver, British Columbia, Jan 17, 2012: Prophecy Coal Corp. (“Prophecy” or the “Company”) (TSX: PCY, OTCQX: PRPCF, Frankfurt: 1P2) has received a positive feasibility study for the Company's 600 MW Chandgana Mine-Mouth Power Project in Central Mongolia. The Report was independently prepared by Ralf Thomsen, Project Manager at Steag, a German firm specializing in the planning, financing, construction and operation of highly efficient, thermal power plants for fossil fuels.
The scope of the feasibility study covers technical specification, deployment, and financial analysis of a 4 x 150 MW thermal power plant to be built adjacent to Prophecy’s Chandgana Tal coal deposit, which contains 140 million tonnes of measured coal*. The Power Plant and the coal deposit have respectively already received a construction license and a mining license in 2011.
Engineering, Procurement & Construction Management (EPCM) selection and Project Financing Discussion are underway and expected to be concluded in 2012.
Feasibility Results
Construction and Timeline
Construction is planned to start in April 2013, with the first 150 MW unit being commissioned in Oct 2015, and subsequent units to roll out in April 2016, October 2016, and April 2017. With proper maintenance, the project will have 30 years of commercial operation.
Capital Cost and Structure
Capital cost is projected to be US $744 million for the 150 MW x 4 project, or US $1,240 per kW. This includes the power plant, overhead transmission lines, and administrative costs. It does not include mine development cost. A mine costing study was conducted and completed by Leighton Asia.
The target capital structure is 30% equity, and 70% debt with a 10% annual interest rate and 10-year pay back. It is envisioned that financing will take place at the project level (i.e. via Prophecy’s wholly-owned East Energy Development, which holds the construction license)
Coal Price and Electricity Tariff
Coal will be supplied by the Chandgana Tal deposit at a steady rate of 2.7 million tonne per year (0.675 mtpa per 150 MW unit) with an as-received heat-value of 3,350 kcal/kg (14,100 kjoule/kg). The delivered coal price is set at $15.50/t with a 2% semi-annual price increase.
Electricity Tariff is targeted at US $0.06/kWh, with a 2% semi-annual increase.
2)
BeantwoordenVerwijderenOperating Costs
The plant's power production cost is US $0.023/kWh (including coal). Capital recovery, including loan principal and interest payments, is estimated to be US $0.025/kWh.
Financial Analysis
Financial analysis based on a 70%-30% debt to equity, generates a post-tax internal rate of return (IRR) of 21.9%, and NPV of US $364.7 million. The base case assumes a discount rate of 12%, debt interest rate of 10%, and exchange rate of MNT 1,250/US dollar. The project economics are sensitive to electricity tariffs and coal prices. For example, a $0.005 kWh (8.3%) tariff hike from base case would increase project IRR to 24.8% and NPV to $473.4 million. Tables from the economic sensitivity study are attached.
Environmental Impact
The Chandgana project will adhere to international and Mongolian emission standards, particularly regarding emissions of Particle Matters (PM), NOx, and SO2. The Chandgana power plant expects to emit 50-80% less PM, NOx, and SO2 than current operating power plants in Mongolia.
Conclusion and Opportunity
This fully-licensed power plant project has first-mover advantage to supplying Mongolia much needed electricity, which currently comes from antiquated plants totaling approximately 700 MW. The coal resource is next to a two-lane highway and 150 km from the existing power grid. Once power and the mine are brought online, there is good potential to introduce additional plant units at lower capital costs.
Mongolia is one of fastest growing countries in the past decade. The enormous Oyu Tolgoi copper/gold project, coming on stream in 2013, alone could boost Mongolia’s GDP by up to 30%. With the growth and new wealth, Mongolia has the urgency to invest in cleaner, more efficient, and long-term stable domestic power infrastructure.
Mongolia-China relations have warmed in 2011 and we are optimistic that this trend will continue. Prophecy’s asset, structure, and networking represent an opportunity to leverage Chinese capital and expertise to generate electricity from Mongolia’s vast coal resource. This electricity is to be created and consumed in Mongolia by its citizens.
In the long run (10 years), the volume of coal resource along with the project’s proximity to China (approximately 400 km from Chinese border and 1,000 km from Beijing) offers the potential to scale up capacity and export electricity to China.
John Lee, CEO of Prophecy states, “The Feasibility Study has outlined the robust financial return for the Chandgana power plant based on conservative parameters. Our low-cost coal supply enables future delivery of affordable and stable electricity to both Central and Eastern Mongolia. The opportunity represents a potential long term revenue stream from power plant operation, as well as from coal operation, without coal transportation issues.”
Commentaar:
BeantwoordenVerwijderenIk denk dat ik mijn wietkwekerij maar ga verplaatsen naar Mongolië.....!!! (lol)
De kostprijs van een Kwh is 2,5 cent en de verkoopprijs is 6 cent per Kwh......!!!
Prophecy Provides EPC, PPA, Project Financing Update on Chandgana Power Plant Project
BeantwoordenVerwijderenSymbol Price Change
PCY.TO 0.45 +0.00
VANCOUVER, BRITISH COLUMBIA--(Marketwire -01/24/12)- Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX: PCY.TO - News)(OTCQX: PRPCF.PK - News)(Frankfurt: 1P2.F - News) is pleased to provide the following update on EPC (Engineering, Procurement, Construction), PPA (Power Purchase Agreement), and project financing in connection with its proposed 600 MW Chandgana power plant project in Mongolia.
In the past 90 days, 4 Chinese EPC companies have reviewed information in our project data room and conducted project site visits in Mongolia. In addition, there are several other international companies that have expressed written interest in bidding on the required EPC contracts. Prophecy has prepared and distributed an RFP (Request For Proposal), and expects to have key EPC proposals by March 31, 2012. As part of any successful proposal, an EPC firm is expected to bring in a lender for debt financing to contribute to the overall project financing. The Company expects to conclude EPC selection in Q2, 2012.
Since obtaining the power plant construction license in November 2011, Prophecy has been in close dialog with the Mongolian Ministry of Natural Resources and Energy regarding the drafting and signing of the Chandgana PPA. To date, there have been several meetings between Prophecy and officials in various departments within the Ministry. In January, a working commission on the PPA was constituted and endorsed by the Minister. Prophecy is working closely with the commission towards a fair and balanced PPA. The goal is to conclude the PPA and EPC selection at the same time.
Separately, Prophecy has met in Beijing with Chinese government-sponsored policy banks currently involved in Mongolian projects, as well as private equity firms engaged in international energy production projects. IPP (independent power plant) projects in Asia, offering stable yields, have garnered interest from institutional investors and Prophecy expects Chandgana to be similarly viewed. Whilst not a certainty, Prophecy is optimistic that upon signing a successful PPA, the Company can secure the necessary equity funding in 2012 to move the project towards construction in Q2, 2013.
Further to the news release dated January 17, 2012, Prophecy wishes to clarify that the feasibility study announced in that release was for the power plant project only, which is a study that does not fall under National Instrument 43-101 (Standards of Disclosure for Mineral Projects). No feasibility study has yet been prepared on the related coal deposit resource so there can be no assurance that the projected annual volume of coal required by the plant would be available from Chandgana, or any other potential coal source. The Qualified Person endorsement in the news release referred only to the resource information contained therein and not to the power plant information.
PROPHECY COAL CORPPROPHECY COAL
BeantwoordenVerwijderenRELATED QUOTES
Symbol Price Change
PCY.TO 0.485 +0.00
VANCOUVER, BRITISH COLUMBIA--(Marketwire -03/08/12)- Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX: PCY.TO - News)(OTCQX: PRPCF.PK - News)(Frankfurt: 1P2.F - News) is pleased to announce the closing of the private placement previously announced on March 1, 2012. Due to investor demand, the Company has increased the size of the non-brokered private placement of common shares to 22,363,866 shares at a price of $0.45 per share for gross proceeds of $10,063,740 (the "Placement").
Company insiders invested $508,500 and together with existing shareholders have subscribed for a majority of this financing. Finder's fees of 6% of the proceeds placed, payable in cash, were paid on certain arms-length portions of the placement.
All shares issued are subject to a hold period expiring on July 9, 2012. Proceeds of the Placement will be applied to technical work at the Chandgana Thermal Coal Power Project, operations at the Ulaan Ovoo mine and general corporate purposes.
The Company also wishes to announce that it has granted options to acquire an aggregate of 3 million common shares at a price of $0.485 per share for a period of five years to directors, officers, consultants and employees of the Company. The above grant is subject to regulatory approval, including the approval of the TSX Exchange.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The Company has approximately 1.4 billion tonnes(i) of near surface thermal coal resources on two coal properties in Mongolia. Prophecy Coal's Chandgana 600 MW mine mouth power plant, for which technical studies are underway, has been permitted. The Company's Ulaan Ovoo coal mine is now in production. Prophecy Coal is the controlling shareholder of Prophecy Platinum Corp. (TSX-V: NKL.V - News). Mineral resources that are not mineral reserves do not have demonstrated economic viability. Further information on Prophecy Coal can be found at www.prophecycoal.com.
Prophecy Coal Enters Into Covenant With Mongolian Energy Authority on 600 MW Chandgana Power Project
BeantwoordenVerwijderenPress Release: Prophecy Coal Corp. – 1 hour 19 minutes ago
Symbol Price Change
PCY.TO 0.27 0.01
VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/28/12)- Prophecy Coal Corp. ("Prophecy" or the "Company") (PCY.TO)(PRPCF.PK)(1P2.F) is pleased to announce that the Energy Authority of Mongolia ("EA") has entered into a Cooperation Covenant (the "Covenant") with Prophecy to bring the 600 MW Chandgana Power Project online by 2016.
The EA is the agency which implements governmental policy in the power and energy sector of Mongolia. The Covenant provides required support for the construction and operation of the Chandgana 600 MW (4 x 150 MW) mine-mouth power plant in central Mongolia and its capacity to supply the necessary electricity to the central and eastern region's power grids by 2016.
The Covenant also covers the basic rights and obligations of the Seller and Purchaser of the electric energy, including the following highlights:
1. The Energy Authority shall monitor the Chandgana Power Plant
construction process to ensure the power plant is constructed within
Mongolian regulations, and approved technical and design specifications.
2. Prophecy shall construct and commission the Chandgana Power Plant
according to the license issued by the competent government body, and do
so within approved design and technical specifications.
3. Prophecy shall supply electricity from the Chandgana Power Plant to the
Central and Eastern Energy Systems with 100 MW Net Electric Output
starting from the 1st quarter of 2016, up to 200 MW from the 3rd quarter
of 2016, 300 MW from the 1st quarter of 2017, and 400 MW from the 3rd
quarter of 2017.
4. Prophecy shall link the Central and Eastern Energy Systems by connecting
the Chandgana power plant with the Baganuur 220 kV sub-station by 220 kV
two-circuit overhead transmission lines to the west and with the
Undurkhaan 110 kV sub-station by 220 kV overhead transmission lines to
the east.
5. As the Mongolian government's implementation agency, the EA confirms the
need to purchase the Net Electric Output described in Clause 3 of the
Covenant, to satisfy the electricity energy demands of the central and
eastern regions.
6. The obligations and liabilities of the Parties provided in the Covenant
shall serve as the guidelines, and basic terms and conditions of the
"Power Purchase Agreement" (PPA) to be further entered into between the
Seller (Prophecy) and Buyer (National Electricity Transmission Grid
Company of Mongolia, NETGCO).
John Lee, Chairman and CEO of Prophecy states: "We are very grateful for the support from various Mongolian government agencies to help bring the Chandgana Power Plant project online and on schedule. This landmark agreement forms the basis of our continued discussion regarding a PPA."
After lengthy legal, commercial, and technical consultations with a designated working group of more than 20 government members, the Company has prepared and submitted the power purchase agreement with full schedules to the Mongolian government for its review and comment. The next step will be to reach an agreement on tariff, followed by execution of the PPA.
June 18, 2012
BeantwoordenVerwijderenProphecy Coal Consolidates Chandgana Coal Basin by Agreeing to Acquire Tugalgatai Licenses From Tethys Mining LLC.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 18, 2012) - Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) is pleased to announce that it has entered into a binding Sale and Purchase Agreement (the "Agreement") to acquire assets relating to certain Tugalgatai coal exploration licenses from Tethys Mining LLC ("Tethys"), and subject to approval from the Minerals Resource Authority of Mongolia, to have such exploration licenses transferred to it. The Tugalgatai licenses are contiguous to the Company's Chandgana licenses which host a measured resource of 650 million tonnes and an indicated resource of 540 million tonnes of thermal coal.
According to records reviewed by Prophecy, on March 15, 2011, Tethys applied to register a resource estimate of 2.33 billion tonnes of thermal coal for the Tugalgatai licenses with the Minerals Resource Council of Mongolia. The resources registered by Tethys are not NI 43-101 compliant. Prophecy expects to conduct work in due course with a view of preparing its own NI 43-101 estimate of the contained resource at Tugalgatai.
Since 2005, Tethys performed detailed exploration on the Tugalgatai licenses including drilling and geophysical methods, and conducted geotechnical, hydrogeological, environmental and topographic studies. Exploration results indicate a large and geologically simple coal occurrence within the Tugalgatai licenses that is similar to Prophecy's Chandgana licenses. The coal seam is continuous across the Nyalga Basin and outcrops to the northwest, with the main coal seam measuring up to 30m in thickness.
The terms of the Agreement include a US$10 million upfront payment and an 8.5% royalty on future coal sales from both the Chandgana and Tugalgatai licenses. The royalty can be extinguished by paying Tethys US$20 million before 2021 or US$25 million from 2021 onwards. Of the purchase price, $2 million will be immediately deposited in escrow. The total payment will be paid to Tethys upon the transfer of the licenses.
John Lee, Chairman and CEO of Prophecy, states: "By consolidating the Chandgana coal basin of approximately 300 squared kilometers, Prophecy is looking for greater economies of scale to potentially produce low-cost electricity at the Chandgana mine mouth power plant, and further develop coal to chemicals and coal gasification projects. It's also possible to further increase the resource through exploration in this highly prospective basin."
The transaction is expected to close in Q3, 2012, subject to regulatory approval from the Minerals Resource Authority of Mongolia. The technical contents of this news release have been reviewed and approved by Christopher M. Kravits, P.Geo, who is a Qualified Person as defined in NI 43-101. Mr. Kravits has 34 years of US and international relevant coal geology experience. He has been active in Mongolia since 2007.
Mushrooms stopped coal formation 300 million years ago
BeantwoordenVerwijderenMichael Allan McCrae | July 1, 2012
Scientists may have solved the riddle why so little coal seemed to form after the end of the carboniferous period.
Mushrooms may have evolved to allow them to fully break down wood, rather than seeing all the organic matter slip under the earth and get compressed into coal.
"Wood is a major pool of organic carbon that is highly resistant to decay, owing largely to the presence of lignin," writes the researchers.
The researchers discovered that lingin degrading fungi started to expand when coal formation dropped off.
"Molecular clock analyses suggest that the origin of lignin degradation might have coincided with the sharp decrease in the rate of organic carbon burial around the end of the Carboniferous period. "
Lead author Dminitrios Floudas, at the biology department of Clark University, published his findings in the journal Science.
The researchers write that the only organisms capable of breaking down lingin are white rot fungi in the Agaricomycetes, which include non–lignin-degrading brown rot and ectomycorrhizal species.
"Comparative analyses of 31 fungal genomes (12 generated for this study) suggest that lignin-degrading peroxidases expanded in the lineage leading to the ancestor of the Agaricomycetes, which is reconstructed as a white rot species, and then contracted in parallel lineages leading to brown rot and mycorrhizal species."
Prophecy Coal Debuts Its Power Division
BeantwoordenVerwijderenPress Release: Prophecy Coal Corp. – 14 minutes ago
PROPHECY COAL CORP
Symbol Price Change
PCY.TO 0.185 0.00
VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/07/12)- Prophecy Coal Corp. ("Prophecy" or the "Company") (PCY.TO)(PRPCF)(1P2.F) is pleased to debut Prophecy Power Corp. ("Prophecy Power"), the Company's wholly-owned Mongolian subsidiary focused on the power sector in Mongolia. Prophecy Power, formerly known as East Energy Corp, was incorporated in 2010 with the specific business objective of supplying power to Mongolia through the construction of the Chandgana Thermal Power Plant. Prophecy Coal's Chandgana LLC in parallel will develop the Chandgana coal project to ensure fuel supply to Prophecy Power.
Location
Prophecy Power's proposed 600 MW (150 MW x 4) mine mouth power plant complex is to be built next to Prophecy Coal's Chandgana coal deposit located in Central Mongolia, next to a paved highway, just 60 km from Undurkhann (east electricity grid connection leading to Cholbbalsan, and 120 km from Baganuur (west electricity grid connection leading to Ulaan Baatar).
Power Plant Licenses
Prophecy Power obtained approval of its Environmental Impact Assessment (EIA) from the Ministry of Nature and Tourism in November of 2010. In November 2011, the Ministry of Natural Resources and Energy granted a construction license for the 600 MW power plant. This license was the first of its kind ever granted in Mongolian history.
etc, etc.
http://finance.yahoo.com/news/prophecy-coal-debuts-power-division-120000831.html
VerwijderenCoal miners lead slide in energy stocks
BeantwoordenVerwijderenBy Jim Jelter, MarketWatch
SAN FRANCISCO (MarketWatch) — Energy stocks tipped mostly lower Tuesday, with coal stocks clobbered by a downgrade from Dahlman Rose and crude prices offering no support to the oil companies.
Coal miner Alpha Natural Resources ANR -6.90% fell 6.9% to close at $5.53 a share, a 52-week low. Peabody Energy BTU -3.37% dropped 3.4% to $20.90, and Walter Energy WLT -6.02% fell 6% to $30.73, another 52-week low.
All three were cut to hold from buy at Dahlman Rose, which lowered its price forecast for metallurgical coal, a key ingredient in steel making.
“We do not think that the long-term met coal story is broken, but it will take the industry time to rebalance supply with demand,” Dahlman Rose analyst Daniel Scott said in a research note.
Meanwhile, the NYSE Arca Oil Index XX:XNG +0.22% fell 0.8% to 1,219.36 points, taking its cue from a 55-point retreat by the Dow Jones Industrial Average DJIA -0.42% and a $1.17 fall in October crude-oil futures CLV2 +0.29% to $95.30 a barrel on the New York Mercantile Exchange. Read more about oil in Futures Movers.
Oil prices backed down following a disappointing set of data from the Institute for Supply Management, whose manufacturing index for August fell to 49.6% from 49.8% in July. Analysts were looking for a reading slightly north of 50%.
Brazil’s Petrobras PBR -2.22% was among the biggest percentage decliners in the group Tuesday, down 2.2% to $20.67. An offshore production and storage vessel being built for Petrobras in Singapore was damaged by fire during testing last week, possibly delaying development of the Bauna and Piracaba fields in Brazil’s Santos basin.
Other key decliners included independent producers Hess HES -1.74% and Occidental Petroleum OXY -2.24% , down 1.7% and 2.2%, respectively.
The NYSE Arca Natural Gas Index XX:XNG +0.22% fared slightly better, building on Thursday and Friday’s gains with a 0.2% advance to 639.46 points.
The Philadelphia Oil Service Index OSX -0.88% fell 0.9% to 221.98 points, with Noble Corp. NE -2.25% leading percentage decliners on a 2.3% drop to $37.28.
First Solar Inc. FSLR -5.35% shares fell 5.4% to $18.92, resuming their retreat from last week. The stock, among the most heavily shorted in the S&P 1500 at 37% of its common shares, is down 79% over the past 12 months.
Jim Jelter is Industrials Editor for MarketWatch in San Francisco.
Prophecy Power Submits Power Purchase Agreement Proposal, Expects Decision in 90 Days
BeantwoordenVerwijderenPress Release: Prophecy Coal Corp. – 2 hours 11 minutes ago
Email
Symbol Price Change
PCY.TO 0.175 0.00
VANCOUVER, BRITISH COLUMBIA--(Marketwire -09/06/12)- Prophecy Coal Corp. ("Prophecy" or the "Company") (PCY.TO)(PRPCF)(1P2.F) is pleased to announce that Prophecy Power Generation LLC ("Prophecy Power"), a wholly owned subsidiary of Prophecy, has formally submitted its Power Purchase Agreement proposal to the Mongolian government.
The proposed Power Purchase Agreement ("PPA") details the terms under which Prophecy Power would be prepared to supply power to Mongolia's National Transmission Grid Co. Highlights of the PPA include:
-- Designated concrete-pour date of April 2013 and 1st phase operational
date of Q1 2016(i);
-- A long term power off take contract to ensure 24/7, uninterrupted
dispatch power supply to the Mongolian grid;
-- A competitive tariff that is lower than Mongolia's wind farm tariff;
-- Capacity and energy charge components in the tariff to cover fixed and
variable costs respectively;
-- A levelized tariff designed to meet anticipated project debt service;
and
-- Tariff indexation based on US CPI, Mongolia wage index, and oil price
index. i.e. a pricing structure that is responsive to changed inputs and
which will provide long term project viability.
(i) subject to conditions including but not limited to financing availability.
Prophecy Power has Mongolia's leading 600MW mine-mouth, thermal power plant project, with a construction license awarded by the Mongolian government in late 2011. Since fuel supply typically accounts for 60% of a power plant's operating cost, Prophecy Power has the comparative cost advantage by sourcing coal from the Chandgana coal project, held by Prophecy's wholly owned Chandgana Coal LLC. The Chandgana coal project includes three coal licenses with a measured and indicated coal resource of 1.2 billion tonnes. In the initial phase, the coal for the power plant will be sourced from two mining licenses containing a measured and indicated resource of 131 million tonnes with a strip ratio of 0.5:1 and a starter pit. An NI 43-101 Preliminary Economic Assessment study is underway in connection with the coal project.
The PPA will be the cornerstone to attract and finalize joint venture power plant developer interest, and solidify project financing.
Prophecy expects to receive a formal reply within 90 days.
John Lee, Chairman and CEO of Prophecy Coal commented: "Both Prophecy and the Mongolian government working group have been working hard for several months to reach this point. All of us have high expectations for the Chandgana project. Everyone here at Prophecy and our government counterparts is quite excited."
Prophecy expects to provide an update regarding EPC selection, JV discussion, and Project Financing in due course.
November 14, 2012
BeantwoordenVerwijderenProphecy Signs MOU with Strategic Partner to Jointly Develop Chandgana Power Plant Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2012) -
Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) is pleased to announce that it has entered into a Memorandum of Understanding (the "MOU") with one of the world's largest power generation groups with installed capacity of over 100 gigawatts and annual power generation of over 450,000 gigawatt hours (the "Strategic Partner") to jointly develop the Company's Chandgana Power Plant project (the "Project") in Mongolia. The Strategic Partner has completed preliminary due diligence on the Project, including a site visit, and held several months of discussions with Prophecy prior to signing the MOU.
The MOU sets out the proposed terms of the cooperation and timeline of implementation of a transaction between the Strategic Partner and Prophecy. The Company cautions that the MOU is not binding and should not be relied upon as a guarantee that a transaction will be completed.
The execution of this MOU is a positive step for Prophecy and its shareholders towards recovering value for the substantial effort and capital that the Company has spent over the past two years to develop the Project. The Company is in active discussions with other power generation companies to complete a consortium to drive the Project towards completion.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The Company's wholly-owned subsidiary Prophecy Power Generation LLC is advancing plans for a proposed 600 MW mine-mouth power plant, which has been permitted by the Mongolian government, adjacent to its Chandgana coal deposit. Chandgana Coal LLC, another Prophecy wholly-owned Mongolian subsidiary, is expected to supply 3.5 million tonnes of coal per year to Prophecy Power for 25 years. Chandgana Coal LLC controls over 1.2 billion tonnes of thermal coal in the measured and indicated categories, including two mining licenses containing 141 million tonnes of measured resource with a strip ratio of 0.7:1. Substantially all of the Company's resources are not mineral reserves, hence they do not have demonstrated economic viability. The Company cautions the Chandgana project is in Mongolia and requires substantial capital to develop.
di 18 dec 2012, 10:25 |
BeantwoordenVerwijderen'Kolen binnenkort belangrijkste energiebron'
PARIJS -
Binnen 10 jaar zijn kolen de meest gebruikte brandstof in de wereld en niet langer olie. Dat komt vooral door de grote vraag in China en India. Dat heeft Maria van der Hoeven, hoofd van het Internationaal Energie Agentschap (IEA), dinsdag laten weten.
Volgens de laatste voorspelling van het IEA ligt het gebruik van kolen wereldwijd al in 2017 bijna gelijk aan de olieconsumptie. De opkomst van kolen is slecht nieuws voor het milieu. Het verstoken ervan gaat gepaard met veel uitstoot van broeikasgassen.
De honger naar kolen heeft te maken met de grote voorraden die er van zijn. Tegelijkertijd groeien de economieën van landen als India en China snel.
Alleen in de Verenigde Staten loopt de vraag terug. In Europa neemt de vraag voorlopig nog toe. Volgens het IEA heeft dat te maken met de hoge gasprijs in Europa en de relatief lage kosten voor CO2-uitstoot. Vanaf 2017 voorziet de organisatie dat het kolengebruik ook in Europa afneemt.
Met Coal 101
BeantwoordenVerwijderenCoal is formed from plant remains that have been covered by a layer of sediment and are subjected to geological forces over time. The forces of the sediment overlaying the plant material cause chemical changes that create a carbon rich substance know as coal. Coal is a readily combustible black or brownish-black sedimentary rock that is composed primarily of carbon, along with variable quantities of other elements such as sulphur, hydrogen, oxygen and nitrogen. Based on its properties, coal can be classified by rank, from lowest to highest, into the categories of lignite, sub-bituminous, bituminous and anthracite. Lower rank coals contain less carbon, more moisture and have lower calorific values.
In general terms, based on the rank, coal can be classified as either “thermal” coal or “metallurgical” coal. Thermal coal is lower in carbon content and calorific value, higher in moisture value, is the world’s most abundant fossil fuel and is primarily used to produce energy. Metallurgical coal is less abundant than thermal coal and is primarily used in the production of coke which is an important part of the integrated steel mill process.
Metallurgical coal is primarily sold to steel mills and used in the integrated steel mill process.
When making steel, two of the key raw ingredients are iron ore and coke. Coke is used to convert the iron ore into molten iron. Coke is made by heating coking coal to about 2000°F (1100°C) in the absence of oxygen in a coke oven. The lack of oxygen prevents the coal from burning. The coking process drives off various liquids, gases and volatile matter. The remaining solid matter forms coke, a solid mass of nearly pure carbon. Approximately 1.5 tonnes of metallurgical coal are needed to produce one tonne of coke. Only certain types of metallurgical coal have the necessary characteristics required to make coke. These characteristics include caking properties (the ability to melt, swell and re-solidify when heated) and low impurity levels (e.g. moisture, ash, sulphur, etc.).
There are three main categories of metallurgical coal: (i) hard coking coal that forms high-strength coke; (ii) semi-soft coking coal that produces coke of lesser quality; and (iii) PCI coal. PCI coal is generally not considered to be a coking coal, rather it is used primarily for its heat value and is injected into a blast furnace to replace expensive coke. Semi-soft and PCI coals normally have lower sales values compared to hard coking coal due to the relative availability of these products. Integrated steel mills will optimize the use of semi-soft and PCI coals in order to reduce overall costs. However, there are technical limits to the ability of integrated steel mills to substitute semi-soft and PCI coals for hard coking coal in their coking coal blend. During periods of high steel demand, high productivity and high PCI-rate furnaces require higher coke quality, for which more high quality hard coking coal is required.
Coal to overtake oil as main source of energy by 2020
BeantwoordenVerwijderenCecilia Jamasmie | October 15, 2013
Despite government efforts to reduce carbon emissions, coal is set to overtake oil as the world's main source of energy by 2020, with potentially devastating effects in the environment, energy consultancy firm Wood Mackenzie said Monday.
According to William Durbin, president of global markets at Wood Mackenzie, China and India are turning to coal since it is cheaper and more reliable than oil or renewable energy sources. In the US, Europe and the rest of Asia coal demand is expected to hold steady.
China's dependence on coal is well known. Annual consumption exceeded 1 billion short tons per year in 1988 and has exploded since then, to an estimated 4 billion tons this year. This means the Asian giant gets about 70% of its energy from the fossil fuel, a number the government hopes to reduce to 65% by 2017.
However, the consultancy doesn’t seem to agree. Speaking at the World Energy Congress, Durbin said China alone would drive two-thirds of the forecast growth in coal demand. Half of the power plants expected to built between now and the end of the decade will be coal-fired.
According to the latest report by the International Energy Agency (IEA), coal will be the main winner in Southeast Asia’s energy mix.
This, says the IEA, will contribute to a doubling of the region’s energy-related carbon dioxide emissions to 2.3 gigatonnes by 2035.
"To the degree that affordable coal has allowed hundreds of millions of people in emerging economies to enjoy the conveniences that the industrialized world began taking for granted long ago, its proliferation is a blessing," the agency’s executive director, Maria van der Hoeven, wrote last year. "Yet for a society increasingly concerned about the amount of carbon it is sending into the atmosphere, the surge in coal burning is not good news."
She added that, despite some governments’ recent initiatives to cut down on carbon emissions, the world faces the prospect of an increased risk of environmental damage as a result of a roaring consumption of the highest carbon fossil fuel.
http://www.mining.com/coal-to-overtake-oil-as-main-source-of-energy-by-2020-53089/?utm_source=digest-en-coal-131021&utm_medium=email&utm_campaign=digest