Blackham Resources (BLK):UCG potential!!

[tommy]

Blackham Resources (BLK) is another UCG microcap that is under the radar but will probably not remain so for much longer because of its 631mt JORC resource which is MORE than the billion market cap Linc Energy's 410mt!!!!!

Shares on Issue 31.6 million
$0.20 Options (30 Nov 08) x 11.3 million
$1.00 Options (~2013) x 2.1 million
Total Options= 13.4 million
Fully Diluted = 45.0 million
Current price BLK: 36c
Current price options BLKO: 15c
Market cap: Approx $16 million

Read this Presentation:
http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=406300

Company website:
http://www.blackhamresources.com.au/

I shall need to say no more... this is massively underrated.

Watch this stock carefully in the coming weeks, this may become the next GLX.

Disclosure: Yes, I hold BLKO.

[shasta]

Blackham Resources (BLK) is another UCG microcap that is under the radar but will probably not remain so for much longer because of its 631mt JORC resource which is MORE than the billion market cap Linc Energy's 410mt!!!!!

Shares on Issue 31.6 million
$0.20 Options (30 Nov 08) x 11.3 million
$1.00 Options (~2013) x 2.1 million
Total Options= 13.4 million
Fully Diluted = 45.0 million
Current price BLK: 36c
Current price options BLKO: 15c
Market cap: Approx $16 million

Read this Presentation:
http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=406300

Company website:
http://www.blackhamresources.com.au/

I shall need to say no more... this is massively underrated.

Watch this stock carefully in the coming weeks, this may become the next GLX.

Disclosure: Yes, I hold BLKO.

Nice write up Tommy, saved me doing it!

Very undervalued company, when you realise how many of its larger peers don't have JORC resources.

I should add BLK have 70% of the JV, not the whole lot...

They have just over $3m cash too

Disc: None yet, on close watch

Ps, Lot of noise on HC, so watch this fly Monday!

[tommy]

Hi shasta,

Thanks for reminding me of the Joint Venture info:
http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=404780

BTW, what is the "noise" on HC??? Rumors? News??

P.S.
BRW article dated 22-28 May 2008 titled "GAS BUSTERS" mentions BLK:
http://www.lincenergy.com.au/pdf/coverage-64.pdf

[bear]

Nice write up Tommy, saved me doing it!

Very undervalued company, when you realise how many of its larger peers don't have JORC resources.

I should add BLK have 70% of the JV, not the whole lot...

They have just over $3m cash too

Disc: None yet, on close watch

posted some of this on SS earlier

BLK is promising but ..... have some longer term reservations and think it could be a good and profitable short term play. Some reasons include

Cash is only $3.8m with a Standby Equity facility of $39.9m (not used because of the unsuccessful Russian bid) it is unclear if this can be drawn on at any time and included equity.

Check out the big partner Wesfarmers and their subsidary Premier Coal - apart from the announcement of the MOU their is nothing else in the most recent WES corporate presentation. Premier Coal doesn't even mention the Scadden prospect in their corporate summaries. Therefore this "big" partner may not know what BLK is proposing for CTL etc. Bit odd for a multi $b prospect not to be even detailed in the upcoming strategy.

Not sure this type of lignite coal will test effectively and will need pilot plants for testing etc before can be commercially appraised and running

technical ability - seems everyone wants CTL technicians (at least LINC have their own) - must be a finite pool

The plant for CTL is years away (as with the others currently promoted with the exception of Linc)

Plant will cost hundreds of $M to develop (even for BLK's share) - BLK worth around $10M ....so either...lots of debt or lots of dilution - cant see WES funding it and not wanting more of a stake.

more likely a buy out prospect than a producer imho

I agree it is currently cheap and will go higher - probably on monday with the masses chasing it and with CSG / UCG being the current flavour.

All others are similarly in the same boat just a little more expensive.


just some thoughts

ps if you didn't already know IMHO LINC is the superior company in this area with much more mileage to come. Just don't hold enough :(

Bear

[tommy]

Thanx bear, excellent posts. Put things into perspective...

As for whether or not the likes of GLX and BLK will ever start commercial production, I agree with you that the answer may be "never".

However, I am not interested in HOLDING this stock for a long-term investment (and if I implied that this is what I'm gonna do, sorry... I am simply TRADING this stock for a quick buck or two on the back of the UCG frenzy).


SO LET ME CLARIFY THAT THIS IS A VERY HIGH-RISK PLAY AND NOT FOR THE FAINT-HEARTED!!!


That said, BLK is undoubtedly cheap in terms of market cap and proven JORC resource.

The only company that is likely to become a real producer at this stage is Linc Energy, they have the best personnel and technology compared to others and hence their premium share price as I have stressed in the LNC thread.

But the market is warming to the potential of UCG so more investor money is likely to flow into this sector, which will naturally push up the share price of some minnows in the process, as has happened with GLX. The best time to get into a sector with strong potential is BEFORE the media starts bombarding you with its mega-billion-dollar potential... and the public has only recently woken up to the potential of UCG in the form of LNC, MEE, CXY, SXP and GLX.

I still believe BLK short term potential, given the current market sentiment, is huge.

But I do highly appreciate your well thought-out posts and hope you will continue posting so that we can all make an informed decision and make some money from our collective intelligence!!

[bear]

Blackham Resources (BLK) is another UCG microcap that is under the radar but will probably not remain so for much longer because of its 631mt JORC resource which is MORE than the billion market cap Linc Energy's 410mt!!!!!



Tommy the differences between Linc and BLK are significant and the JORC means nothing if you don't have a plant or a working process

The Linc operation of 20,000 barrels per day will start construction middle of next year - Blackham is still years away

Linc has a proven method and it works (well we will know in the next few weeks if the pilot has been successful)

Linc has numerous MOUs and its own resource yet to be JORC but drilling is commencing shortly to get its own source compliant

Linc is reviewing 10 other sites in Australia, USA and Europe therefore not a one trick pony

Still think you will make plenty of coin - may look at buying some myself for a short term play:)

Bear

[tommy]

Tommy the differences between Linc and BLK are significant and the JORC means nothing if you don't have a plant or a working process

The Linc operation of 20,000 barrels per day will start construction middle of next year - Blackham is still years away

Linc has a proven method and it works (well we will know in the next few weeks if the pilot has been successful)

Linc has numerous MOUs and its own resource yet to be JORC but drilling is commencing shortly to get its own source compliant

Linc is reviewing 10 other sites in Australia, USA and Europe therefore not a one trick pony

Still think you will make plenty of coin - may look at buying some myself for a short term play:)

Bear

Never disagreed with you BEAR that LINC is miles ahead of BLK.

I love LNC, don't get me wrong but do you think the market thinks exactly like you? Do not underestimate the power of herd mentality, might as well exploit the UCG boom like I have over the past several weeks... it has been so easy to make money.

Suckers of UCG love MEE, SXP and GLX, meaning that they would probably like BLK as well.

However, trading may be quite risky this week due to DOW and All Ords charts looking very weak so be careful... don't risk what you can't lose!!

[bear]

Never disagreed with you BEAR that LINC is miles ahead of BLK.

I love LNC, don't get me wrong but do you think the market thinks exactly like you? Do not underestimate the power of herd mentality, might as well exploit the UCG boom like I have over the past several weeks... it has been so easy to make money.

Suckers of UCG love MEE, SXP and GLX, meaning that they would probably like BLK as well.

However, trading may be quite risky this week due to DOW and All Ords charts looking very weak so be careful... don't risk what you can't lose!!

would never pretend to know the market ...the herd is all powerful and the DOW does look weak for the coming week ...

we saw over the last week or so profit taking and a shift from LNC to MEE, GLX etc and this will probably continue - im long term on LNC

still consider BLK a good short term play and would be even more interested if WES showed their hand on this prospect - rather surprised no mention anywhere in their most recent corporate presentations

still plenty of $$ to be made :D

bear

[tommy]

Yeah, there is a reason why LNC is a BILLION dollar market cap, but still BLK's tiny 16 million market cap seems pretty good value when compared with its peers WITH NO JORC resource.

Worth topping up LNC on any weakness but in the meantime, worth putting some pennies into UCG minnows as well for faster gains...

I still hold my original position at this stage, keep an eye on BLK in da coming weeks!! The UCG gravy train has not run out of steam (yet)!! (unless there is a DOW crash, needless to say!)

[shasta]

Yeah, there is a reason why LNC is a BILLION dollar market cap, but still BLK's tiny 16 million market cap seems pretty good value when compared with its peers WITH NO JORC resource.

Worth topping up LNC on any weakness but in the meantime, worth putting some pennies into UCG minnows as well for faster gains...

I still hold my original position at this stage, keep an eye on BLK in da coming weeks!! The UCG gravy train has not run out of steam (yet)!! (unless there is a DOW crash, needless to say!)

Tommy/Bear

Some good info there.

Remember the 40m facility is to be repaid (& will be in this quarter), due to the unsuccessful bid in Russia, that was in the conditions.

BLK has a JORC resource & no, it doesn't have any production facilities...

But consider SXP here for a minute....

A JORC resource (i think?) & they are effectively in a JV/MOU with LNC to add to LNC's feed stock supply, to fast track development.

I agree with Tommy, BLK/BLKO should be seen as a short term trade only, in any case i believe a much bigger player will take them over to get to there JORC resource....

Seems much cheaper to buy out a junior for there resources than to head up a major exploration & drilling campaign & do it all yourself.

Relative to its peers it is cheap however & thats what Tommy & I like about it.

With a share price of $1 we are talking about a market cap mid $30m's & thats roughly a 200% return from these levels.

I don't believe with all the CSG/UCG hype that a company with a large JORC resource is overly expensive with a market cap even around $35m.

Hell, just look at the "U" sector to see the blue sky valuations for non JORC companies that will NEVER produce/mine a single lb!

[tommy]

BLK up 23%, BLKO up 53%!!!

Hehehehehe (laughing on the way to bank...)

[shasta]

BLK up 23%, BLKO up 53%!!!

Hehehehehe (laughing on the way to bank...)

I posted yesterday that BLK would run today...:D

Consider it now "discovered".

[tommy]

I posted yesterday that BLK would run today...:D

Consider it now "discovered".

So Shasta you were the one doing all that buying today to push up the share price!!?! Thanx!!!!

[shasta]

So Shasta you were the one doing all that buying today to push up the share price!!?! Thanx!!!!

No i haven't had a sell order hit yet, & holding cash waiting to see how "cheap" i can buy certain stocks...

My holdings are always as per my signature.

[pago]

hi tommy ,blko up 14c to 29c,ie 93%.surely it cant hold that,must be a gap between 15/20c,amazing.pago

[tommy]

Hi shatsa and pago,

I have already taken my profits for BLKO (after a 93% rise in one day, who wouldn't????? still have half left though), but I think BLKO may have quite a bit of steam left because it is fairly priced relative to BLK, and BLK's market cap is still very small compared to its peers despite today's rise.

This stock will be volatile, but I expect a similar scenario to GLX unfolding here. As long as LNC keeps rising, others in the sector will naturally follow.

BTW, if you hold, make sure you have a stop loss in place... if the DOW keeps sliding, All Ords might bleed badly. Microcaps lose liquidity fairly easily, but I am hoping the UCG sector will continue going against the general market trend like IPL did last year!

[bear]

Hi shatsa and pago,

I have already taken my profits for BLKO (after a 93% rise in one day, who wouldn't????? still have half left though), but I think BLKO may have quite a bit of steam left because it is fairly priced relative to BLK, and BLK's market cap is still very small compared to its peers despite today's rise.

This stock will be volatile, but I expect a similar scenario to GLX unfolding here. As long as LNC keeps rising, others in the sector will naturally follow.

BTW, if you hold, make sure you have a stop loss in place... if the DOW keeps sliding, All Ords might bleed badly. Microcaps lose liquidity fairly easily, but I am hoping the UCG sector will continue going against the general market trend like IPL did last year!

Well done Tommy - v. nice gain :D:D

not on this one though :( - may look to jump on if some consolidation

Sold a few LNC today - Now free carried with change - looking at EDE (hydrogen products) and MEE (MOU with IPL) interesting

[tommy]

Well done Tommy - v. nice gain :D:D

not on this one though :( - may look to jump on if some consolidation

Sold a few LNC today - Now free carried with change - looking at EDE (hydrogen products) and MEE (MOU with IPL) interesting

Thanx bear, to be honest I didn't expect the "herd" to storm into BLK so quickly... I was assuming it would take another two weeks or so for the market to wake up to its potential.

I'm a fan of MEE as well, in fact I have invested/traded most UCG stocks listed on ASX over the past several weeks... call me a total sucker for UCG :-P

Will look into EDE, never heard of the company. You should open a thread with your research if it looks like a potential winner!

[tommy]

BLK skyrockets after announcement, BLK up 28%, BLKO up 48%:

Exercises Option to Purchase Zanthus Lignite Project
http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=409069

Damn, I sold out too early! Should have free carried it...

[shasta]

BLK skyrockets after announcement, BLK up 28%, BLKO up 48%:

Exercises Option to Purchase Zanthus Lignite Project
http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=409069

Damn, I sold out too early! Should have free carried it...

BLK - Blackham progressses towards 1 billion tonnes

http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=425212

Tommy, you still keeping an eye on this?

[shasta]

BLK - Blackham progressses towards 1 billion tonnes

http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=425212

Tommy, you still keeping an eye on this?

BLK - Presentation :)

http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=447858

Billion+ coal resource & a cheap entry to a possible CTL play

Micro Cap, with a few $m in the bank, < 35m shares on issue...

A multi-bagger in the making?

Might grab a few & see what transpires ;)

[Corporate]

BLK - Presentation :)

http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=447858

Billion+ coal resource & a cheap entry to a possible CTL play

Micro Cap, with a few $m in the bank, < 35m shares on issue...

A multi-bagger in the making?

Might grab a few & see what transpires ;)

What was happening when they hit $1.3ish do you know? Or 60c a year ago?

[bear]

What was happening when they hit $1.3ish do you know? Or 60c a year ago?

Most of the spike was due to CSG/ UCG Euphoria. All stocks in this sector became multi baggers in a short space of time.

Some examples include
LNC from 80c to peak of $5
CNX from around 20c to $1
CXY from around 5c to 20c+
BLK was no different but the small market cap drove this one much harder

There were many other peripheral companies including others like Sapex that got caught in as well.

The whole sector has suffered due to funding constraints and drop in the price of oil. The quality of the base resource being used is also very different as is the method used and end use or product.

The sector offers value but there will be winners and losers and i feel funding will be the single biggest hurdle. The plants proposed offer very high rewards at 15-30,000 barrels per day but plants cost several $Ab to develop and unless they have a large cornerstone investor or have a means to achieve scale they will not reach their potential.

Not convinced that BLK has a long term future although in Wesfarmers there is a potential backer. Not sure how much of the pie will be left for existing shareholders. I am also unsure of the legnite resource used as the base resource for the process is efficient although Sasol are involved (and are very experienced operators)

just some thoughts

Hold LNC

Bear

[shasta]

Most of the spike was due to CSG/ UCG Euphoria. All stocks in this sector became multi baggers in a short space of time.

Some examples include
LNC from 80c to peak of $5
CNX from around 20c to $1
CXY from around 5c to 20c+
BLK was no different but the small market cap drove this one much harder

There were many other peripheral companies including others like Sapex that got caught in as well.

The whole sector has suffered due to funding constraints and drop in the price of oil. The quality of the base resource being used is also very different as is the method used and end use or product.

The sector offers value but there will be winners and losers and i feel funding will be the single biggest hurdle. The plants proposed offer very high rewards at 15-30,000 barrels per day but plants cost several $Ab to develop and unless they have a large cornerstone investor or have a means to achieve scale they will not reach their potential.

Not convinced that BLK has a long term future although in Wesfarmers there is a potential backer. Not sure how much of the pie will be left for existing shareholders. I am also unsure of the legnite resource used as the base resource for the process is efficient although Sasol are involved (and are very experienced operators)

just some thoughts

Hold LNC

Bear

Am still watching BLK with interest...

http://www.stocknessmonster.com/news-item?S=BLK&E=ASX&N=450557

Well behind the likes of LNC & CNX, but seemingly making the right moves

[Joshuatree]

Still around shasta?
Guidance 104,000 oz AISC $1130 first pour not far off
Matilda Gold project resources est now @ 48m/t @ 3.3gm/t for 5.1 M0z(48% indicated)
Maiden resource 381,000 oz @ 3.3g/t
In the start up phase and price responding accordingly with Brexxit being a turbo catalyst
From 58c (Brexxit) to 93c now
Download Document 1.07MB (http://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvFDZpiw jdjxmVkOh789RNT7rJHoAdWhNhOFHhlFA%3D)

[shasta]

Still around shasta?
Guidance 104,000 oz AISC $1130 first pour not far off
Matilda Gold project resources est now @ 48m/t @ 3.3gm/t for 5.1 M0z(48% indicated)
Maiden resource 381,000 oz @ 3.3g/t
In the start up phase and price responding accordingly with Brexxit being a turbo catalyst
From 58c (Brexxit) to 93c now
Download Document 1.07MB (http://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvFDZpiw jdjxmVkOh789RNT7rJHoAdWhNhOFHhlFA%3D)

Good timing then, no i'm not watching it, not that interested in gold projects.

Initial interest was back in the alternative gas hype/bubble short term play only

[SCHUMACHER]

well done to those who held this one from the days of 15c - i held these at 15 and sold at 20c - then completely left gold alone - cant be in every single stock - harry hindsight is awesome :)

[Joshuatree]

Forgot about this thread. trading halt. Best performer of the brace of goldies i bought on brexxit day followed by RSG which I've sold.
Trading Halt-BLK.AX (http://hotcopper.com.au/threads/2837060/)
High Grade Intercepts At Bulletin-BLK.AX (http://hotcopper.com.au/threads/2836196/)
Matilda Gold Project Commissioning on Schedule-BLK.AX (http://hotcopper.com.au/threads/2835185/)

[Traderwannabe]

Some good signs of a recovery over the last few weeks. A lot of chatter about it moving into the teens soon. Any thoughts ....

[pak]

Yeah definitely has potential now I reckon. Jumped on at 0.065.
Pencil in 8th April for their March update. If shes another cracker sp will jump again.

[pak]

Some people have done a stack of research. Checkout the long post from HC below. Summarizes the whole turnaround story.
Enjoy.



https://hotcopper.com.au/threads/gold-turnaround-story-of-2018.4032121/page-1025?post_id=31868863#.WrAs14GYY0M


Something also of note: there has been an insto selling down recently.

[Traderwannabe]

0.065 is a great entry price..... looking to move today. Be nice when it gets over the 10cent mark!

[Joshuatree]

Needs to prove up more reserves imo.

[Traderwannabe]

A good move today...nice finish at 8.7c. Tomorrow should be interesting.

[Traderwannabe]

Closed at 10.5c yesterday with large volume going through. March results expected Friday or Monday.

[Vagabond47]

Grabbed a bunch of options at 3.5c, so hoping a good production report/quarterly report will push the share price to 15c or so to put me in profit. Not overly fussed if it takes a bit longer, I'm planning to hold unless the price goes nuts and I feel the need to take some profit.

[pak]

Yep a gd report will cement this turnaround I reckon. Just missed my top up order the other day at 0.085. Wont chase it now. Just letting it do its thing.
Momentum building........