Montem Resources (MR1) - Premium Price Canadian Coal Takes Off

Matthew Gordon,
Ptolemy Capital

5 Months ago

Coal investment isn't for everyone it seems, but it is nevertheless an important industrial material, not just for energy. Coking coal, met coal or steelmaking coal are all the same thing. It represents 10% of all coal sold by volume. Thermal coal has the justifiably bad reputation for polluting the air and skies in China and India. Montem IPO'd in September following 3 years as a private company. Doyle talks us through the team (ex-Glencore - who tend to think big) and their plans to get their assets in Alberta, Canada back into production. Tent Mountain is the smaller of the two but comes with a mill and permits and can be produced in 2022. The numbers are ok, IRR 17.3% at base, pre-optimised financing and 14-year LOM extension. This will provide the cash flow for the getting the 2nd larger asset, Chinook, into production.

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