Montem Resources (MR1) - Premium Price Canadian Coal Takes Off
Summary
- ASX: MR1.
- Shares Outstanding: 202.7M.
- Share price AUD$0.28 (25.11.2020).
- Market Cap: AUD$57M.
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 and used in the production of steel. Without it, we'd be in trouble.
We talk to Peter Doyle, MD & CEO of Montem Resources (ASX:MR1). 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 2, but comes with a mill and permits and can be produced in 2022. The numbers are IRR 17.3% at base case, pre-optimised financing and without an extension on the current 14 year Life of Mine. This will provide the cash flow for the getting the 2nd larger asset, Chinook, into production.
Company Overview
Montem Resources is newly listed on the ASX. They are a coking-coal company operating in Canada with a number of development assets in the centre of coking-coal production area called Crowsnest Pass. They have one mine that they're bringing back into life which should be producing in 2022 and are planning to use those profits to invest in large development assets that are adjacent to that mine.
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