On 13 December 2018, Bowen Coking Coal Ltd (ASX: BCB), an explorer and developer of coal announced the appointment of two experienced coal executives to the board of directors. Mr. Neville Sneddon and Mr. Nick Jorss have joined the board as a non-executive chairman and non-executive director respectively. These two gentlemen have enormous experience in coal. Earlier, Mr. Sneddon was working as a Managing director of Anglo Coal Australia, and Mr. Jorss was the managing director of Stanmore Coal Limited.
Apart from the appointment of these two non-executive director’s appointment, the company has also made a placement of 31,250,000 shares at a price of 1.6 cents per share to The St Lucia Resources Capital Trust which is a fund St Lucia Resources Capital Fund Pty Ltd (SLRCF) under St Lucia Resources Capital Fund Pty Ltd.
SLRCF is a fund that was taken care by Mr. Nick Jorss. As a result of the subscription of 31,250,000 shares, BCB was able to generate revenue worth $500,000 which will help in the exploration and development program of BCB.
A further update is being provided by the managing director of BCB, that Mr. Nick Jorss is interested in investing a significant amount of capital into BCB’s growth and development, which adds another level of confidence in company’s coal assets.
There is also an option package of 30,000,000 options available where Nick can exercise his options in three tranches. In the first case, Nick would be able to exercise 10,000,000 options each at $0.025 each in between 12 months and 24 months after the issue date of the option. In the second case, he can exercise 10,000,000 options each at $0.03 each in between 12 months and 24 months and in third case another exercise 10,000,000 options each at $0.035 each in between 12 months and 24 months.
Also, due to the scarcity of coking coal mine development, there are times where the demand for coal does not meet the supply of coal to the steel making companies. It is a positive outlook for the commodity as the price of coke will increase.
Further to the appointment of two non-executive directors, Mr. Eddie King resigned from the post to join some other ASX listed company.
Since the company got listed on ASX, the performance of the company is negative. The five years performance of the company is -99.21%. Since last year, the performance of the company is -11.11%.
For FY2018 ending 30 June 2018, the company made a net loss of $1,327,448. The balance sheet of the company appears quite healthy as the difference between the total asset and the total liabilities of the company is vast indicating its potential to meet its long-term obligations. Also, the difference between the total current asset and total current liabilities was enough where the company was able to meet the working capital requirements as well as meet its short-term obligations. However, this year there is a slight increase in the accumulated losses of the company which might create a negative impact on the shareholders of the company.
By the end of FY2018, the net cash available with the company was $1,461,445.
At present, the market price of the share is A$0.018 (AEST: 1:51, 13 December 2018) which has increased by 12.5% since the market open this morning with the stock holding a market capitalization of A$9.19 million.
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