Atrum Coal Retracted Comparative Analysis For Elan Hard Coking Coal Project

  • Feb 07, 2019 AEDT
  • Team Kalkine
Atrum Coal Retracted Comparative Analysis For Elan Hard Coking Coal Project

Atrum Coal retracted the Peer Comparison Information after the Australian Securities Exchange (ASX) stated that as per its belief the comparison made between Atrum’s flagship Elan Hard Coking Coal Project and other coking coal projects and companies, is not appropriate.

Therefore, the coal developer Atrum Coal Limited (ASX: ATU) stated: ‘Investors should not rely on the Peer Comparison Information as a basis for an investment decision in relation to Atrum’s shares.’

The shares of the company were placed on a trading halt yesterday pending an announcement. The halt was lifted today (7 February 2019) post the announcement. However, the investor sentiment remained neutral to the withdrawal of ‘Peer Comparison Information’ as there has been no daily price change in ATU. The stock last traded at $0.135 with a daily volume change of 964,167 shares as on 7 February 2019.  

The case is in reference to the Investors’ Update that Atrum released to the market on 5 February 2019. On Page 16 of that update, the company presented a table titled ‘A highly attractive Canadian HCC project exposure’ which compared Atrum’s 100% owned Elan Hard Coking Coal Project with the projects of other coking coal companies located in western Canada including Riversdale Resources, Jameson Resources and Allegiance Coal.

The comparison reflected enterprise value, project resources, product type, flagship projects and target production of all the companies among other key parameters. The Enterprise Value of Atrum Coal was posted to A$35 million, compared to approximately A$392 million EV of private company Riversdale Resources. Whereas, Project Resources were reported to 298 Mt, 195Mt, 99Mt and 37Mt for Atrum’s Elan Project, Riversdale’s Grass Mountain Project, Jameson’s Crown Mountain project, and Allegiance’s Tenas Project, respectively.

Currently, Atrum’s Elan project is at Pre-Scoping level with exploration and field work scheduled for first half of 2019. The company aims to define multiple open pit zones at Elan South and drill Wildcat area by the second half of 2019 so that it can provide an updated Elan Project Resources in 2H 2020 along with the release of Scoping Study and initial EIA.

Elan Hard Coking Coal Project projects 298Mt premium hard coking coal resource in Southern Alberta and is Located in a Tier 1 coal production and infrastructure hub in Altera, 13km from direct rail access to key West Coast export terminals. It is therefore considered as a significant, high-quality HCC project potential with excellent proximity to critical rail infrastructure.

During 2018 exploration and field program at Elan South, the company identified Significant coal intersections in most drill holes and exposed in road cuttings, with apparent cumulative intersections of up to 42.8m.

The company expects to declare initial JORC estimate and coal quality results in Q1 2019 with respect to its Panorama North Joint Venture with Japan Oil, Gas and Metals National Corporation (JOGMEC). As per the company’s information, the project is fully funded with approximately C$1.9 million raised through 2018 funding program.

The market capitalization of the company stood at $48.71 million as at 7 February 2019. ATU has witnessed a negative price change of 7.43% over the past 12 months, despite a massive upsurge of 53.42% over the past three months.


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