Last Thursday the company inked a far reaching deal with Asia's Noble Group (SGX: N21) that will provide additional significant support for the development of Ovoot Coking Coal Project's development.
Noble and Aspire have extended their strategic alliance, first entered into in November 2011, which will deliver several port and rail solutions for the Mongolian project including potential access to Noble's recently acquired Russian Far East Port.
Access to seaborne markets is a key part of Aspire's development strategy for its world class Ovoot Project, and importantly there is a path for Mongolian coking coal through Russia now.
Recently, a revised Pre-Feasibility Study showed the Ovoot Coking Coal Project in Mongolia could become one of the lowest cost producers of coal into China. Life of mine ex-mine gate cost is estimated at $36 per product tonne of quality coking coal.
Ovoot ranks as the second highest coking coal reserve in Mongolia. It also ranks in the middle of Tier 1 coking coal assets based on reserves and marketable coal. With a 96-97% vitrinite content it identifies Ovoot as one of the highest value in-situ coal deposits globally.
Following the announcement, Proactive Investors said: "With a current EV/Resource Tonne of $0.12 and EV/Reserve tonne of $0.14, ranks Aspire Mining at the lower end of coal developers relative to its peers.
"On our analysis, we calculate a valuation of Aspire Mining at closer to $0.20-$0.25, based on the value of the resource in the ground and applying an appropriate discount for sovereign risk, infrastructure and funding risk relative to projected returns."
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