This is an exercise I am doing to highlight value opportunities at different ends of the market. Below I have listed information on an emerging coal producer in the Bowen Basin, Queensland. The company, Bandanna Energy (ASX.BND) holds a number of coal prospects; the most advanced being the Springsure project near Emerald. The project is close to existing mines like Rolleston, as well as rail and port infrastructure.
Below I have provided pertinent information that prospective investors might like to acquaint themselves with. If you are interested in learning how to appraise and invest in mining stocks, and why, you might like to engage in the discussion on Facebook, where you can ask questions. Let me first provide some resources for a company Bandanna Energy (ASX:BND).
1. Cashflow statement - download from the Australian Stock Exchange - note the level of cash holdings and no debt. Appreciate the simplicity of these companies to understand. Its quantitatively grade 1 maths.
2. Activities statement - quarterly - this is the more tricky part that requires understanding geology, mining, marketing, logistics, global economics and finance, commodities and mineral processing, among other issues like politics, maybe even farming. It sounds like an education in itself just researching these companies.
3. Company presentation - these companies make it easy for you (presentation), but are they offering a complete picture of the stock?
4. Company comparison - Acacia Coal (ASX:AJC) - this is another company in the same vicinity with another project, but it offers slightly different exposure. They have less cash, low-energy, smaller project, open cut. They have a different presentation - which is a source of more information useful for both companies. Note the coal prices. Does this look like the time to buy, or the time to sell? Why?
5. Google Finance - So what do you get for your money. Let's look at Bandanna Energy and Acacia Coal on Google Finance - note the number of shares and market capitalisation - compare that with cash.
So what's your appraisal of these companies? What is their likely relationship moving forward if any? What is the best stock exposure in the current market context? Do we have all the information we need to know? What other information might be pertinent? Learn more on our Facebook page.
Below I have provided pertinent information that prospective investors might like to acquaint themselves with. If you are interested in learning how to appraise and invest in mining stocks, and why, you might like to engage in the discussion on Facebook, where you can ask questions. Let me first provide some resources for a company Bandanna Energy (ASX:BND).
1. Cashflow statement - download from the Australian Stock Exchange - note the level of cash holdings and no debt. Appreciate the simplicity of these companies to understand. Its quantitatively grade 1 maths.
2. Activities statement - quarterly - this is the more tricky part that requires understanding geology, mining, marketing, logistics, global economics and finance, commodities and mineral processing, among other issues like politics, maybe even farming. It sounds like an education in itself just researching these companies.
3. Company presentation - these companies make it easy for you (presentation), but are they offering a complete picture of the stock?
4. Company comparison - Acacia Coal (ASX:AJC) - this is another company in the same vicinity with another project, but it offers slightly different exposure. They have less cash, low-energy, smaller project, open cut. They have a different presentation - which is a source of more information useful for both companies. Note the coal prices. Does this look like the time to buy, or the time to sell? Why?
5. Google Finance - So what do you get for your money. Let's look at Bandanna Energy and Acacia Coal on Google Finance - note the number of shares and market capitalisation - compare that with cash.
So what's your appraisal of these companies? What is their likely relationship moving forward if any? What is the best stock exposure in the current market context? Do we have all the information we need to know? What other information might be pertinent? Learn more on our Facebook page.
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