Adavale Resources Limited ("ADD") - Cheap Coal??

[STRAT]

Hi Gaz.
I suspect the cap raising was an intended disaster by the underwriter. Share Holders werent exactly given much time to get sorted.

[drillfix]

I agree fella's!

Had a trade in this not long ago only to get out by the skin of my teeth, but had thought about holding long to see how things play out.

I dont even know what this company does, or what they are going to do.

With respects to cap raising, its got a signature of greed about it where the guy with the big cigar is only waiting for the stage to be set, as "they (whoever they are)" obviously will know all the in's and out's of whatever is going to play out.

I guess its worth a punt jut to play blind man's bluff and go with the river current, but like most potential shareholders, its always pays to do some research into what it is we could be invested in, and without know what cards the company is playing , this makes matters a little "awkward" say?

[gazprom1]

Hey Strat/DF,

It was a very quick cap raising and they did make it clear that you were NOT permitted to subscribe for any more than you were entitled...the shortfall was theirs!!!! I managed to get a good holding at 2.2 and then participated in the cap raising. It has a strange feeling surrounding the whole company...almost like the calm before a storm!!!! Now they have loaded up on shares and oppies, you would think they should start to tell us how it is all going to play out. Exciting...

DF - they are into thermal coal in Indonesia...want to be low cost producer and they have stated that they want to be up and running by Xmas...but that seems unrelastic to me unless it is already to go....!!!

Good to have you back on the forum. The place is better for your input and views.

Cheers
Gaz

[drillfix]

Hey Strat/DF,

It was a very quick cap raising and they did make it clear that you were NOT permitted to subscribe for any more than you were entitled...the shortfall was theirs!!!! I managed to get a good holding at 2.2 and then participated in the cap raising. It has a strange feeling surrounding the whole company...almost like the calm before a storm!!!! Now they have loaded up on shares and oppies, you would think they should start to tell us how it is all going to play out. Exciting...

DF - they are into thermal coal in Indonesia...want to be low cost producer and they have stated that they want to be up and running by Xmas...but that seems unrelastic to me unless it is already to go....!!!

Good to have you back on the forum. The place is better for your input and views.

Cheers
Gaz

Hi Gaz, its always great be around and posting here as I dont post on HC as many know.

With this Co, exciting maybe, but when one has to wait and see what is behind the curtain, or the box, kinda gives me the Uran Jitters.

Are any of the people in the company related to, or by chance dating Kate Hobbs that cow of a woman whom is CEO of Uran? As this is the sort of tactics she would ploy or stage.

Maybe its just me Gaz, has been a while since holding a few stocks so when untold stories unfold I get a little weary which is probably understandable.

I am also holding an indo, Coal type play with only few issued shares called Coal FE code: CES

Apparently, prices will rise due to the Rain nature of the weather making it awkward to explore, extract and deliver the coal, but CES are meant to already have done their maiden shipment but that also got delayed due to wet weather. Ahh well, as long as the price goes up of the resource then surely that still is good.

Hopefully some news on all fronts hey, but still gotta watch these markets as they seem somewhat unpredictable at times.

[STRAT]

ADD climbing quite well today on back of lack of sellers. I like that. Dunno if its real but theres a 1 mill buy at 2.6c

[percy]

The Indonesian update is positive.

[STRAT]

The Indonesian update is positive.

Hi Percy
I guess it was. What I find interesting though is that there are so few for sale that price action will be in complete contrast to the samples on the Breakout thread where volume preceeds and there fore gives warning of price action. I guess theres always more than one way to skin a cat eh?

I reckon there is a much greater chance of a break out/up of this kind to also fall flat without warning.

[percy]

Hi Percy
I guess it was. What I find interesting though is that there are so few for sale that price action will be in complete contrast to the samples on the Breakout thread where volume preceeds and there fore gives warning of price action. I guess theres always more than one way to skin a cat eh?

I reckon there is a much better chance of a break out/up of this knd to also fall flat without warning.

Yes,I have thought it will do one of three things: 1/ go up 2 /go down, or 3/ stay the same. But then it my do all 3 !!! However we are ready for whatever!!!!!

[gazprom1]

ADD climbing quite well today on back of lack of sellers. I like that. Dunno if its real but theres a 1 mill buy at 2.6c

Strat,

Agree - Who knows if it is "real" or not but the fact that you could unload a million at 2.6 is ok by me. Close at 2.8 (over half a million at 2.8 or more) is excellent. Would like to see greater volumes. Good to see them marketing themselves in the presentation...they need to do more regular updates - will email them!

I wonder whether their Tapan prospect is more advanced than they are letting on???

Gaz

PS Mkt cap $5.6million - cash at bank $4.1 million. EV valued at next to nothing.

[steve fleming]

Strat,

Agree - Who knows if it is "real" or not but the fact that you could unload a million at 2.6 is ok by me. Close at 2.8 (over half a million at 2.8 or more) is excellent. Would like to see greater volumes. Good to see them marketing themselves in the presentation...they need to do more regular updates - will email them!

I wonder whether their Tapan prospect is more advanced than they are letting on???

Gaz

PS Mkt cap $5.6million - cash at bank $4.1 million. EV valued at next to nothing.

I didn’t realise the extent of the ground work that these guys have done in Indonesia.

Office in Jakarta set up, 6 staff, 3 Geo’s plus technical manager.
A very structured business plan.
These guys appear very serious.


4 MOUs plus one signed conditional agreement.
Yes, potential deposits are on the small size, but are high grade; and ADD have stated they wish to use the cash flows and experience in mining the small projects to secure larger opportunities.
Sounds like a reasonable approach to me.

In relation to Tapan, 2 pits have already been designed to commence mining assuming completion. They have presented the pit designs (Central and Western Pit)
Mining potentially is not too far away.

Gaz - Market Cap now is about $9mil after issue of shares of which $4m = cash.

So an EV = $5million, still unjustifiably low.


I am thinking there will be a large re-rating once Tapan completes , and Management prove they can actually close a deal.

Up 40% from the rights issue price of 2c already, in just over a week. Plenty more to come once Management can demonstrate their credibility and get the story out.