AFR (African Energy Resources)

[COLIN]

There doesn't seem to be a separate thread for this one, which is a spin-off from its former parent which is now concentrating on other prospects back in the US. It seems to be standing up well, on its own, at least so far. I have been following for a little while, and bought into it recently. Up 21% yesterday, and now a speeding ticket from the ASX. Seems that punters are attracted by the prospects of this coal mining exploration in Botswana, which does provide the possibility of reducing dependency on their uranium interests.

[COLIN]

I notice that its erstwhile parent, EVE, has also enjoyed a further boost today. There seems to be a more positive attitude creeping back with respect to uranium explorers.

[Huang Chung]

Hi Colin

I bought AFR the day they announced that coal find. Did a bit of research and figured that the coal wouldn't get mined for years, so I lost interest and sold.

Silly me.....

[COLIN]

Hi Colin

I bought AFR the day they announced that coal find. Did a bit of research and figured that the coal wouldn't get mined for years, so I lost interest and sold.

Silly me.....

Sorry to hear that, HC. Not your usual astute self!

Price seems to have "fired up" (!) further today with that Sese Coal Investor Presentation. Potential to become Botswana's largest exporter of thermal coal, and tenement is 100% held by AFR. Thick main seam, very close to surface, meaning low cost strip mining. Potential for total tonnage of greater than 1 to 1.5 BN tonnes. JORC compliance expected early in the New Year. Strong Indian demand is expected.

And something else that I find particularly encouraging is that Botswana is regarded as the most stable democracy in Africa. Not that there is really much competition on that score, I suppose, but reassuring nevertheless. And Botswana will be somewhat familiar territory to anyone out there who has read any of Alexander McCall Smith's delightful series on "The Number 1 Detective Agency" of course!

[Huang Chung]

The two things that have me off are:

1. Energy value of the coal is low in comparison to Newcastle or some Canadian coal I've looked at (Coalspur).

2. Whilst not too far from rail, the rail does not seem to lead to a port.

3. Botswana is known to have heaps of coal.

Whilst I would have been happy to ride the share price higher, I'm not uncomfortable being on the sidelines.

[COLIN]

Anyone else rejoicing with me today? HC - did you change your mind?

I haven't read the Diggers etc report, but it must have had something that tickled subscribers' fancy.

[Huang Chung]

Well done Colin.

Still not convinced, but hey, the shareprice is the best judge of Mr Market's view I guess.....

[COLIN]

Still continues to please.

[drillfix]

Still continues to please.

This stock rocks Colin, huge gap up since last week. And today is just pushing along.

I should start taking a bit more notice, but when it shoots up like this, I seem to scare easy that I may be buying the high.

I even noticed it has risen 2c since starting this post.. sheezus. Well done mate.

[COLIN]

This stock rocks Colin, huge gap up since last week. And today is just pushing along.

I should start taking a bit more notice, but when it shoots up like this, I seem to scare easy that I may be buying the high.

I even noticed it has risen 2c since starting this post.. sheezus. Well done mate.

I can understand your reluctance, Driller. I sold today - at 57.5 I didn't quite manage the top price but am happy to walk away with a 150% gain in just two months. I could see that sellers were starting to chase buyers.

[whirly]

My target buy of 31 got hit this week. Anyone else in on this one. Capital raising of 15m oversubscribed in July @ 50c. Recent director buying at 34. Coal production brought forward, new leases to be announced any time hopefully. Cheap n dirty coal but heaps of it. Extremely speculative on my behalf but felt like taking a punt to make some extra cash for xmas. This is not a recommendation to buy.

[whirly]

Director bought 100,000 @31.5 Power Development manager appointed. Not sure what this means though. :confused:

[whirly]

Helmsec Research report out. http://www.africanenergyresources.com/

RECOMMENDATION: Speculative Buy
AFR has a massive, near surface coal resource sitting in the centre of
a chronic regional power shortage. Development of a coal mine and
power station at Sese is a logical supply response to the unresolved
Southern African power shortage.
A power station is one crucial leg of AFR’s four stage plans for Sese. A
mine and wash plant producing coal for regional industry will come
first to establish capability and key relationships. AFR is confident the
regional industrial demand can absorb 1 Mtpa from Sese. From there
negotiations with governments, IPPs and financiers will be made
easier.
AFR’s ultimate goal for Sese is the Indian thermal coal market, which
requires a new rail and port link. Extraordinary volumes and margins
for coal exporters beckon, with finance standing in the way of a
green light for one of two rail and port proposals.
Sese is valued here at $1.00 per African Energy share, based on early
indications of future cash flows, after discounts for extensive market,
estimation and finance risks.
The supply response to the power shortages in southern Africa is
likely to continue to disappoint unless relatively easy options like
Sese are pursued. AFR is a play on Southern Africa’s continued
development, to the mining boom that is currently driving economic
growth in the region, and to India’s relentless electrification drive.
Helmsec reiterates a Speculative Buy recommendation.

[whirly]

Go you good thing!!