AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
On 24 January 2019, Bowen Coking Coal Limited (ASX: BCB), a company from the metals and mining industries into the business of exploration and development of coking coal announced the quarterly activities and cash flow for the December quarter for the period ended 31 December 2018.
During the period, the company was successful in completing the second phase of the drilling at Cooroorah which at present holds a 154mt JORC Resource. The drilling program at various targets was successful which created confidence in the geological model of the company and its continuous predictions.
At the companyâs 100% owned Isaac river project, the company announced its maiden JORC Mineral Resource Estimate.
During the quarter, the company made the appointment of two experienced executives, Nick Jorss and Neville Sneddon to the board. Mr. Neville Sneddon joins the company as the chairman, and Mr. Nick Jorss joined as the non-executive director of the company. Both these executives carry substantial coal experience.
Along with the appointment of the executives, the company also made placement of new 31,250,000 shares at an issue price of 1.6 cents per share to generate revenue of $500,000. The placement of these shares was through St Lucia Resources Capital Fund Pty Ltd (âSLRCFâ) which is an entity associated with Nick Jorss. The fund raised through the placement of shares will be used in accelerating further exploration and the development program. During the period, the company received significant interest from the domestic and international producers and end users.
As a result of strong economic growth and resultant steel demand, there was a growth in the demand for coal by 4.4% in 2018.
The company expects that its Isaac River exploration program will start in the early parts of the next quarter. The purpose of this exploration program is also to understand the wash ability and gain confidence in the washability of the Leichardt Lower and Vermont seams. It will also help in identifying the coal quality.
The official listing of BCB on ASX is 22 June 1995 where its overall performance was -99.76%. However, its last one-year performance was 10.53%.
During the December 2018 quarter, there was net cash outflow of $0.655 million where the significant cash outflow was in the form of exploration & evaluation, staff costs and administration and corporate costs. As a result of raising capital through shares, the company also had to bear the transaction cost associated administration and corporate costs to the issue of shares worth A$0.100 million.
By the end of the period, Bowen Coking Coal Limited had net cash and cash equivalent worth $1.781 million.
Despite a positive quarterly result, there was a fall in the share price post the quarterly results announcement. The probable reason might be that the investors have started selling their shares as the newly issued shares were issued at A$0.016 indicating that the share is overpriced in the market. By selling the shares at the existing price, they can make a profit.
By the end of the trading on 24 January 2019, the closing price of the share was A$0.019 which is 0.002 points below its previous dayâs closing price with the stock holding a market price of $12.72 million.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
