Jay Taylor's "Gold, Energy & Tech Stocks" newsletter gives Prophecy Coal (TSXV:PCY) a Buy Recommendation - Video Summary Posted on Investmentpitch.com
Vancouver, British Columbia, September 7, 2011 - Jay Taylor, in the latest edition of the J. Taylor's Gold, Energy & Tech Stocks newsletter, gives Prophecy Coal (TSXV:PCY) a buy recommendation. Jay became aware of Prophecy Coal after his recent visit to Prophecy Platinum's (TSXV:NKL) property in the Yukon.
InvestmentPitch.com has produced a "video news alert" based on the J. Taylor's Gold, Energy & Tech Stocks newsletter recommendation. If this link is not enabled, please visit www.investmentpitch.com and enter "Prophecy" in the search box.
Let's review a couple of the reasons Jay gives to substantiate his buy recommendation.
Prophecy Platinum was a spin off from Prophecy Coal earlier this year. Prophecy Coal still holds a 45% interest in the spinoff company, and at present is selling for little more than the value of its holding in Prophecy Platinum.
Jay Taylor believes that the company's very substantial coal holdings in Mongolia offer shareholders major upside potential. Prophecy has more than 1.4 billion tonnes of surface minable thermal coal resources on two coal properties in Mongolia.
The new producing mine is the Ulaan Ovoo Mine, which recently signed coal sales agreements, totalling 92,000 tonnes, with Mongolian and Russian buyers. It has a 20 million tonne reserve and a 209 million tonne resource of high quality thermal coal. A single-seam, 50 metre thick coal seam, and a strip ratio of 2:1, should make this a relatively low-cost mining operation.
230,000 tonnes of coal have already been stockpiled. Although geophysical surveys suggest significantly more coal exists at this mine. Even the present reserves and resources suggest a minimum mine life of 20 years.
The second project, which Jay believes is potentially far more significant, is the Chandgana Project. The resource here is 1.2 billion tonnes of thermal coal, but longer term this could get much bigger with some 100 square kilometres of prospective claims. With a stripping ratio of 0.5:1, mining costs are expected to be low. In addition to the low stripping ratio, the deposit is located next to rail and paved roads. A mining license has been obtained for 140 million tonnes.
Plans are to use this coal to fuel a power plant to be built at the mouth of this open pit mine. A permit to build the power plant is anticipated by October. The plan here is to initially build a 600 megawatt plant to serve Mongolia's surging electricity demand and then later to increase the plant's size to 1,400 megawatts to sale into Beijing and other Chinese markets which are starved for more electricity. The current timeline has construction beginning during the second quarter of 2013 and for the project to be completed by 2015. Early economics studies suggest electricity sold at US$0.06/kw/h would more or less equal the sale of coal at $100/tonne.
Jay believes the anticipated bankable feasibility study should bolster confidence in this project.
Prophecy Coal trades at $0.66, and with approximately 195 million shares outstanding, is capitalized at $130 million.
For a more information on Prophecy Coal, visit their website www.prophecycoal.com phone Asif Visram at 1-800-358-5865 or email avisram@prophecycoal.com.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan@investmentpitch.com
604-684-5524
InvestmentPitch.com has produced a "video news alert" based on the J. Taylor's Gold, Energy & Tech Stocks newsletter recommendation. If this link is not enabled, please visit www.investmentpitch.com and enter "Prophecy" in the search box.
Let's review a couple of the reasons Jay gives to substantiate his buy recommendation.
Prophecy Platinum was a spin off from Prophecy Coal earlier this year. Prophecy Coal still holds a 45% interest in the spinoff company, and at present is selling for little more than the value of its holding in Prophecy Platinum.
Jay Taylor believes that the company's very substantial coal holdings in Mongolia offer shareholders major upside potential. Prophecy has more than 1.4 billion tonnes of surface minable thermal coal resources on two coal properties in Mongolia.
The new producing mine is the Ulaan Ovoo Mine, which recently signed coal sales agreements, totalling 92,000 tonnes, with Mongolian and Russian buyers. It has a 20 million tonne reserve and a 209 million tonne resource of high quality thermal coal. A single-seam, 50 metre thick coal seam, and a strip ratio of 2:1, should make this a relatively low-cost mining operation.
230,000 tonnes of coal have already been stockpiled. Although geophysical surveys suggest significantly more coal exists at this mine. Even the present reserves and resources suggest a minimum mine life of 20 years.
The second project, which Jay believes is potentially far more significant, is the Chandgana Project. The resource here is 1.2 billion tonnes of thermal coal, but longer term this could get much bigger with some 100 square kilometres of prospective claims. With a stripping ratio of 0.5:1, mining costs are expected to be low. In addition to the low stripping ratio, the deposit is located next to rail and paved roads. A mining license has been obtained for 140 million tonnes.
Plans are to use this coal to fuel a power plant to be built at the mouth of this open pit mine. A permit to build the power plant is anticipated by October. The plan here is to initially build a 600 megawatt plant to serve Mongolia's surging electricity demand and then later to increase the plant's size to 1,400 megawatts to sale into Beijing and other Chinese markets which are starved for more electricity. The current timeline has construction beginning during the second quarter of 2013 and for the project to be completed by 2015. Early economics studies suggest electricity sold at US$0.06/kw/h would more or less equal the sale of coal at $100/tonne.
Jay believes the anticipated bankable feasibility study should bolster confidence in this project.
Prophecy Coal trades at $0.66, and with approximately 195 million shares outstanding, is capitalized at $130 million.
For a more information on Prophecy Coal, visit their website www.prophecycoal.com phone Asif Visram at 1-800-358-5865 or email avisram@prophecycoal.com.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan@investmentpitch.com
604-684-5524
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