Coalspur (CPL) - infrastructure advantage

[Huang Chung]

CPL is owner of the Hinton Coal Project, located in in the eastern foothills of the Rocky Mountains in Alberta, Canada. The Project is a large scale thermal coal project located adjacent to the main line of the CN Rail which currently contains a JORC Coal Resource of approximately 467 million tonnes of low sulphur, high volatile, bituminous C thermal coal.

They also have the Coalspur Project close by, and have recently trebled their leaseholding in the area, including the land between the Hinton and Coalspur Projects. Huge potential to massively increase this resource with further drilling.

Scoping study released today confirming the economics of the Hinton Coal Project:

http://www.coalspur.com/assets/Uploads/100210Scoping-StudyFINAL.pdf

Investor presentation from last October:

http://www.coalspur.com/assets/Uploads/091008CoalspurPresentationASX-v2.pdf

Details on the acquisition of additional leases:

http://www.coalspur.com/assets/Uploads/091207-Expansion-of-Coal-Assets-Final.pdf

CPL is already a multi-bagger, but with a market cap of around $130m, it seems to me that there could be several more bags in the offing.

[pago]

CPL is owner of the Hinton Coal Project, located in in the eastern foothills of the Rocky Mountains in Alberta, Canada. The Project is a large scale thermal coal project located adjacent to the main line of the CN Rail which currently contains a JORC Coal Resource of approximately 467 million tonnes of low sulphur, high volatile, bituminous C thermal coal.

They also have the Coalspur Project close by, and have recently trebled their leaseholding in the area, including the land between the Hinton and Coalspur Projects. Huge potential to massively increase this resource with further drilling.

Scoping study released today confirming the economics of the Hinton Coal Project:

http://www.coalspur.com/assets/Uploads/100210Scoping-StudyFINAL.pdf

Investor presentation from last October:

http://www.coalspur.com/assets/Uploads/091008CoalspurPresentationASX-v2.pdf

Details on the acquisition of additional leases:

http://www.coalspur.com/assets/Uploads/091207-Expansion-of-Coal-Assets-Final.pdf

CPL is already a multi-bagger, but with a market cap of around $130m, it seems to me that there could be several more bags in the offing.

iwill have closer look

[Huang Chung]

PS Share price was 34c when I started this thread yesterday.

[drillfix]

Your a good picker I reckon HC.

Here ya go, a chart from webIress buddy, pretty basic but it serves a simple puprose with a stock such as this.

http://i47.tinypic.com/1ysi9k.png

Close at 37c so there seems to have been a good little trade in there for some, or for those with more of a brain like HC then there will be some good dollars in the long run as I do have faith in his FA knowledge, but as always, mind the overall market.

You can see in the chart how it rose originally up to R4, could not hold, fell through S3 down to S2, bounced back to R3, down again to and snapped through S2 down to what I have wrote S1.

Since S1 it has traded sideways, as one would expect considering the past market conditions we have had.

Between this side way level ie: 27c 28c would a have been a good entry for a swing trade.
As it move up to around 32c the risk increases.

As we speak, I would not buy the stock because that would be buying near resitance, I myself would buy the support though past 38c and have a target of 45c (or 44.5c).

The same would go for S3 but it is honestly too small of a range and I probably should not have drawn it in. but there were a couple of flat spots so what the heck.

My next plan would then be it I found it had broken out with some convincing Volume or with the FA completely behind it driving the stock, I would then then take a long position at 50+c upwards providing the market conditions are
favourable.

And depending on what FA or news was to be had, I would load also take a 2nd position depending on the sector and whatever positive fundamentals become apparent.

Im not much of a commentator really HC but there you go for now buddy.

Hope this helps anyway. :)

[Huang Chung]

Similar looking chart to GIR....big uptrend, big pullback, followed by a more steady uptrend. Probably similar to many other miners I would imagine.

Happy to hold.

[Huang Chung]

As we speak, I would not buy the stock because that would be buying near resitance, I myself would buy the support though past 38c and have a target of 45c (or 44.5c).



Drilly, I know your reasons for it, but it always does my head in the way you chartists won't buy something at 37c, but will happily pay 38c for the same thing :D.

[drillfix]

Drilly, I know your reasons for it, but it always does my head in the way you chartists won't buy something at 37c, but will happily pay 38c for the same thing :D.

LOL HC,

You know, I used to keep on saying the exact same thing quite a few years ago for quite some time as I never really took any interest of TA.

Depending on the stock TA does actually work each and every time and there is no guarantee's, but saying that, for more liquid stocks TA becomes very much more essential.

webIress is not the best for charting, and I really must get my act (money) together and make a move to a more robust type of package.

Back to the chart though, yes strange why someone would want to pay more, but I believe they call it confirmation. ;)

add:

Forgot to mention, not really like GIR chart hc, GIR continues to have higher highs and higher lows, but with 1 exception.
Need to watch out for the last candle though, dont like it.
For the sake of GIR I hope it continues as in the near future, one would need to watch out for the potential double top (that could happen markets pending) which would then potentially make some holders run.

[Huang Chung]

iwill have closer look

3 trading days later and CPL is up nearly 20%. Not bad in this market.

I really like the look of CPL.

Did you get set Pago?

[pago]

3 trading days later and CPL is up nearly 20%. Not bad in this market.

I really like the look of CPL.

Did you get set Pago?

hi,huang chung,no ,something put me off,how is it an oz company can make this fly in canada when canada is also a global resource leader?what were the canadians doing?cheers pago

[Huang Chung]

hi,huang chung,no ,something put me off,how is it an oz company can make this fly in canada when canada is also a global resource leader?what were the canadians doing?cheers pago

Fair enough pago.

Sizable drop today...another day like today would get CPL back into my buy range.

[pago]

Fair enough pago.

Sizable drop today...another day like today would get CPL back into my buy range.

hi hc,the scoping study is an impressive read,pago

[Huang Chung]

I actually took profits on a small part of my CPL holding pago to help fund a stake in a newly listed coal play in Mongolia...Hunnu Coal (HUN). Less advanced than CPL, but again, potentially big upside.

BRR interview with HUN MD George Tumur attached....seems like a 'can do' kind of guy :).

http://www.brr.com.au/event/64129/projects-in-mongolia

My coal exposure is now pretty much an even split between CPL and HUN.

PS...CPL has around 34m shares coming out of escrow this Friday, so maybe some short term weakness ahead that I hadn't previously counted on :(.

[h2so4]

HC I looked at 2009 balance sheet current assets are $575m and total liabilities are $200 something. Market Cap is $111m. Am I missing something or is this a net net???????

[Huang Chung]

Total assets $6.3m, total liabilities just over $200,000.

[h2so4]

CPL is worth more dead than alive.:confused:The market is prcing CPl as though it is going out of business.

[Huang Chung]

The red mist decended over the eyes today. In a blaze of testosterone induced lunacy, I sold all my CPL to double up on Hunnu Coal.

Now going throught the 'what they hell did I do THAT for' post moretum :eek:.

Oh well, I guess I can always buy CPL back at some stage.....

[COLIN]

The red mist decended over the eyes today. In a blaze of testosterone induced lunacy, I sold all my CPL to double up on Hunnu Coal.

Now going throught the 'what they hell did I do THAT for' post moretum :eek:.

Oh well, I guess I can always buy CPL back at some stage.....

I can't understand why you are chastising yourself, HC! HUN performed markedly better than CPL today, although I guess it depends on the timing of your swap. If its any consolation I also launched into HUN today, having read a bit lately about the vast mineral wealth of Mongolia, and its strategic location in regard to the huge appetites of its neighbours. I also listened to the HUN audio - "the Saudia Arabia of coal" he said! Also, the investment climate seems to be pretty favourable towards entrepreneurs. I'm sold on the story! Now, I hope their development schedule doesn't run too far past their target dates, and that they don't keep coming back to shareholders for more cash, all the time - a la PRC on the NZX.

[Huang Chung]

Hi Colin

I guess the fact that HUN are not anywhere near as advanced as CPL means my risk profile just went up a notch or three. Sometimes you wonder...bird in the hand or two in the bush :confused:.


Still, MD George Tumur seems to have a kick-ass attitude, and things look like they might progress quite fast. Targets he mentioned are:

Initial JORC within 3 months
First coking coal mine operating within 24 months
3 coal mines (2 x coking & 1 x thermal) operating within 4 years, giving 5mtpa of production.
PS, as a parochial Queenslander....I'd still have to say WE are the Saudi Arabia of Coal ;).

[Footsie]

i bought a small amount 2 days ago, thinking they were breaking out.
alas no
but i think if they can stay above 35c then good chance for another assault at 40c in the near future.

[Huang Chung]

CPL shares coming out of escrow tomorrow would no doubt be keeping a lid on things for the moment. But, it should only be a temporary issue.

[Footsie]

great
what terrible timing!

[h2so4]

CPL shares coming out of escrow tomorrow would no doubt be keeping a lid on things for the moment. But, it should only be a temporary issue.

More bad news HC........Tomorrows Saturday.:D

[Huang Chung]

More bad news HC........Tomorrows Saturday.:D

Not when you post on a Thursday it ain't ;).

Anyhoo, so much for a sell down of shares coming out of escrow.

CPL up and HUN down :mad:.

[h2so4]

Not when you post on a Thursday it ain't ;).

Anyhoo, so much for a sell down of shares coming out of escrow.

CPL up and HUN down :mad:.

Ooops.................how embarrassing.:o

Maybe another contraction in the global economy will reduce the share price?:)

[Huang Chung]

Finally rebuilt my position in CPL, but at a higher price unfortunately.

Nice steady rise in CPL over the last few days. Quite encouraging.

This time, I'll keep holding my Hunnu's and Coalspur....my Dynamic Duo of Coal :cool:.

[Footsie]

Go the Spur. bought some more at 39c. trageting the old high

[COLIN]

Finally rebuilt my position in CPL, but at a higher price unfortunately.

Nice steady rise in CPL over the last few days. Quite encouraging.

This time, I'll keep holding my Hunnu's and Coalspur....my Dynamic Duo of Coal :cool:.

Its encouraging to note that for both CPL and HUN the buyers outstrip the sellers by a ratio of about three to one.

[Huang Chung]

A montha ago..34c

Now 48.5c

Drilling results and resource upgrade due anytime.

Some congestion around 50c, but if we get through that....

(I got MEY wrong, but luckily I'm more overweight CPL)

[Huang Chung]

Foster stockbroking have just released an update on CPL, with a target price of $1.00, more than double the current share price.

Go to fostock.com.au and look under 'talking point'.

[drillfix]

HC, it appears CPL has been slapped down by the resistance line, which was drawn previously just after your first post on this thread here:

http://i47.tinypic.com/1ysi9k.png

Yesterday it manage to only just punch through, but finished at resistance.

Will be interesting to see how things pan out over the next week or two.

[asc4]

Some congestion around 50c, but if we get through that....


It's a wee bit shy of that 50c mark at the mo, i'm keen on entry around the 45/46c mark if it is still shy to take up that next support level. But, today could be the day to get in at the bottom of the next support level ~50c, with the dow in the green AGAIN!

Oh what will it do...but more importantly...what will I do??!

P.S any timeframe on JORC?

[Footsie]

what is the next catalyst here?
presentation says Coalspur Project JORC Resource 1st quarter . This will obviously be a big driver.
well only a week left of the first quarter.
Technically a break above 50c would be very bullish.

[Huang Chung]

Management meet the local business community:

http://www.hintonvoice.com/link.asp?smenu=140&twindow=Default&sdetail=691&mad=&wpage=1&skeyword=&sidate=

[Footsie]

Phaedrus question

I sold the my CPL today. but technically its still in an uptrend...

I bought in around 38c.

My question is, if you were a holder, would you have sold yet? if not, why not, if yes why.

My reason for selling is that it looks a bit frothy and it has reached my fundamental target.

Thanks
Footsie

[Huang Chung]

I exited myself about 2 days ago. JORC upgrade to come soon, but the recent price rise might be leading to a case of 'buy on the rumour and sell on the news'.

Redeployed funds to buy more Hunnu Coal (HUN) and Papillion Resources (PIR).

[drillfix]

My reason for selling is that it looks a bit frothy and it has reached my fundamental target.


Footsie, dont you mean profit/exit target? Which, if that is the case, you have then reached your objective with the trade (and done quite) so for what its worth IMO, focus on the next trade to keep in check with your next objective.

I know at least that's what I would be thinking about. Yet I too love to hear commentary from the mindset of Phaedrus.

[drillfix]

Redeployed funds to buy more Hunnu Coal (HUN) and Papillion Resources (PIR).

HC, you make me want to return to be a fundamentalist you do :P

[Footsie]

sold to early up 23% today

[h2so4]

HC, you make me want to return to be a fundamentalist you do :P

It could be one way to stop your gambling habits?

[soulman]

sold to early up 23% today

What going on with this train?

HC, you must be on a streak picking these winners and quite early too before they spike. What's the secret?

Both HUN and CPL up on big volume. Looks like CPL might spike just below a buck before retracing for a breather.

[Huang Chung]

HUN has been like a runaway train Soulman, and CPL hasn't been too tardy either. Sold the CPL too early (around 61c), but made up for with the HUNs. Took some HUN money off the table today...it can't keep going forever.

[drillfix]

HUN has been like a runaway train Soulman, and CPL hasn't been too tardy either. Sold the CPL too early (around 61c), but made up for with the HUNs. Took some HUN money off the table today...it can't keep going forever.

HC, can I just give you whatever money I have and you can deal with it :P

I am starting to wish I had stopped what ever technique or focus I had been practising and just rolled with the flow so to speak. Ahh Well ~!

[Huang Chung]

Some decent picks in a rising market Drilly...but Hunnu's explosive rise has amazed me.

Don't forget that I've also recently bought BFE, RSG, PMC, MEY...all sold at a small loss (and EXM, a far more substantial loss).

[drillfix]

Hi HC, yep I got onto BFE with a small parcel yesterday after it dipped.

Expecting some results to come out soon I think, would you know approx?

MEY, I have on one of my lists, but have just left it, will take another look although has toggled for quite some time has it not?

[asc4]

Bang!! Funding, New Lease Aquisitions close by..CPL off to a roaring start!