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

[steve fleming]

SF,

Since cap raising the price has gone from 2.0 cents to 2.3 cents - could we see a P&D? Cap raising was a disaster in terms of participation from S/H's but good for the related party insider who had underwritten the issue. They provide very little information to the market which is of a concern. Would be great to see them get some news out into the market.

Options are not listed which isa shame as would have been good to laod up on them.

Hoping ADD is going to be the stellar year end performer.

Gaz

Discl: Hold

Hi Gaz,

Yep, i took up my entitlement in full - it was a no-brainer surely??

Pg 18 of the Prospectus says that an application will be made for quotation of the options....but Pg 17 of the Prospectus says that an application will NOT be made???

I would have thought they will be listed, will be dissapointing if they are not ....hmmm....will have to check with the co.

[drillfix]

So is there anyway as yet to judge what this actual company will do, where it will do it, and of course, when it will do whatever it is that its going to do? :P

I know that sounds a bit confusing, but in brief, when will the mystery veil be unveiled? No doubt, once the SP has bolted out the gates.

[gazprom1]

Hi Gaz,

Yep, i took up my entitlement in full - it was a no-brainer surely??

Pg 18 of the Prospectus says that an application will be made for quotation of the options....but Pg 17 of the Prospectus says that an application will NOT be made???

I would have thought they will be listed, will be dissapointing if they are not ....hmmm....will have to check with the co.

SF,

Looks like all the insiders have all filled their boots....extra 9m shares issued over and above the shortfall allocation. Nice that they did not let us subscribe for any of the shortfall. Shares have moved up 25% over the past week...beautiful. I loaded up as much as I could stomach pre and post rights so feeling comfortable with a nice buffer there. I did the same with BUR and it has been a success except they allowed us to take up the shortfall...up 27% in a couple of weeks.

Need some news of the development/ contracts to continue to see it move up.

Cheers
Gaz

[soulman]

Weird ain't it that the options aren't listed. Got me stumped. I thought it was a shoe in but didn't read the fine line.

Anyway, it has been a success so far with the price action.

[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.