Prairie Mining Share Discussion Threads

[keya5000] 27/10/2016 18:53

Set up a new thread with a bit of detail within it;

[keya5000] 27/10/2016 18:50

Operational Mine Ready Debiensko Project;

[keya5000] 27/10/2016 18:44

Coking coal is on its biggest run for six years, since the peaks of 2011/2 it has been a very hard market for coal.

Lots of companies that held massive market caps in 2011 have either gone bust or been rescued with massive dilution debt/equity etc.

Listed in London we have few choices for a 'quality coal play'. There are several African and Asian based companies with large reserves but all a long way from 'true development' and often in trouble geo-political situations.

Praire is Australian registered, listed on the ASX,LSE & WSE (Poland) and operates its projects in Poland close to the central heart of the European Steel inustry and thus 'next door' to its market.

At £32m mcap it is very cheap to its peers and its coal holds the lowest lifting costs in the Western markets on a comparable with the worlds lowest (25$ tn).

[keya5000] 27/10/2016 18:32

COKING COAL RALLY

[keya5000] 27/10/2016 18:28

Debiensko Project is mine ready and should have production in early 2017,it is critical to the area.

• Project is bordered by Knurow-Szczyglowice Mine in the north west and Budryk Mine in the north east, both owned and operated by Jastrzębska Spółka Węglowa SA (”JSW”),Europe’s leading producer of hard coking coal.

• Debiensko mine was originally opened in 1898 and was operated by various Polish mining companies until 2000.

• Previous owner commenced planning for Debiensko to comply with Polish mining
standards, with the aim of accessing and mining hard coking coal seams.

• In 2008, Poland’s Minister of Environment approved NWR’s development plan and granted a 50-year mining concession for Debiensko.

• Following detailed technical due diligence, Prairie is confident that a revised development approach is achievable that would allow for the early mining of profitable coal seams, whilst minimising upfront capital costs.

• This is likely to include focusing on a smaller area of Debiensko to target coal seams that are more readily accessible.

EARLY PRODUCTION WILL BENEFIT FROM THE 200% INCREASE IN SOFT COKING COAL PRICEINCREASE SINCE MID-2016.

[keya5000] 27/10/2016 18:24

Lublin Coal Project PFS Key Parameters

Mining Method Longwall

ROM Coal Production (Steady State Average) 8.0Mtpa

Clean Coal Production (Steady State Average) 6.34Mtpa

Initial Mine Life 24 years

Coal Handling & Process Plant Dense Media

Access to Market Existing port and rail

Steady State Annual EBITDA US$348.1m

Operating cash cost (Steady State Average) US$24.96/t

Direct Capex To First Production US$557.6m

EPCM, Owner’s Costs and Contingency US$74.1m

Unit Sustaining Capex (Steady State Average) US$3.43/t

PLN: USD 4.0:1 long term

$1.39bn NPV

$348m EBITDA

THAT IS JUST LUBLIN...............

[keya5000] 27/10/2016 18:04

In October 2016 Praire bought the rights to the 'mine ready' Debiensko Project from the receivers of NWR, a true fire sale, likely arranged in mid/earlier 2016 when coking coal was very much out of favour before the recent rally.

• High quality 100% hard coking coal (“HCC”) asset with large scale Coal Exploration Target range of 210-260 Mt

• Coal seam qualities indicative of internationally traded benchmark premium HCC

• Historical mining and local geology support low redevelopment risk

• Revised development approach would allow for the early mining of profitable coal seams, whilst minimising upfront capital costs Fully Permitted, “Mine Ready” Project Prime Location to Supply European Steelmakers Attractive Commodity Fundamentals

• Fully permitted with a 50-year mining concession, environmental consent and local planning all in place

• Brownfield project with significant historical capital investment characterised by established on-site facilities
including rail, road and power infrastructure

• Highly experienced team of Polish mining specialists including engineers, mine managers, mine planners, geologists, surveyors and environmental specialists join Prairie bringing substantial synergies to expedite development of Prairie’s Lublin Coal Project

• Located in Upper Silesia, Southern Poland - heartland of Central Europe’s steel industry

• >50% of Central Europe’s coking plants and steel mill production capacity within a 250km radius
• Regional industrial users of coking coal include ArcelorMittal, ThyssenKrupp, Voestalpine and US Steel

• Well-established rail network providing ease of transport to end users based in close proximity to Debiensko.

Prairie to benefit from significant pricing “netback”; advantage over USA and Australian imported HCC

• European HCC market relies on imports for 80% of coking coal needs: 40 Mtpa out of 50 Mtpa total
consumption is imported

• HCC classified as “Critical Raw Material” by European Commission – commodity of 3rd highest economic importance to Europe

• >180% increase year to date in HCC price

[keya5000] 27/10/2016 18:04

​Prairie Mining Limited ("Prairie" or the "Company") is an emerging Polish coal developer focused on the development of the Lublin Coal Project ("Project"). The Company is triple listed on stock exchanges in Australia (ASX), London (LSE) and Warsaw (WSE).

The Lublin Coal Project is a large scale premium quality coal project with a current Coal Resource Estimate (”CRE”) of 728 million tonnes across four coal exploration concessions in south eastern Poland.

On 8 March 2016, Prairie announced the results of a Pre-Feasibility Study for the Project which confirmed robust project fundamentals including the potential to supply 6.34 million tonnes of premium coal into the heartland of industrial Europe and to do so at an average cash operating cost of US$24.96 per tonne - the lowest cash cost for coal delivered into Europe.

[keya5000] 27/10/2016 18:02

Polish WSE:PDZ






Prairie Mining Limited (ASX/LSE/WSE: PDZ) is an emerging coal company focused on the development and operation of the Lublin Coal Project, in the world class Lublin Basin in eastern Poland.

Located within the heartland of industrial Europe with a large scale coal resource of 728 million tonnes and with excellent access to infrastructure, Prairie’s vision is to become Europe's lowest cost supplier of premium coal.

Debiensko Project



Lublin Project



Broker Note-Mirabaud March 2016.

[keya5000] 27/10/2016 14:44

Decent volume today.

[keya5000] 27/10/2016 09:54

Thought this local news item may have created a bit more interest here.

[lord gnome] 26/10/2016 17:04

Looks like we have a board after all. Good to see some others on board.

[andrbea] 26/10/2016 15:46

interested in pdz because Billiton says commodity prices are recovering
so can see this heading north again

pdz is on hot copper too, as u know:

[keya5000] 26/10/2016 15:33

I would expect a mcap of £100m+ if a JV/development share was announced.

[keya5000] 26/10/2016 15:32

andrbea,

Are you interested in this one, that Polish piece looks quite promising.

JV on both mines with a Chinese Major funding such would be fantastic.

Probably get this up to £1+

Look at the economics of the Lublin project.

On a lower coal price than we see today it would produce an EBITA of over $400m for 24 years, payback in two!

That is some reserve and it does not include the NWR asset they recently pinched.

[andrbea] 26/10/2016 15:29

coking coal:

[keya5000] 26/10/2016 15:11

The above eludes to a JV with China Coal for mine development.

[keya5000] 26/10/2016 14:47

Anyone read this-----

[bigego] 26/10/2016 07:29

hxxp://www.pdz.com.au/uploads/1/7/9/6/17961663/161026_-_debiensko_acquisition_final.pdf

[lord gnome] 13/10/2016 10:02

Anyone alive on here? FWIW I've just bought a few of these following news of the acquisition. Very tightly held with limited stock available. It would be difficult to build anything like a decent position without moving the price and I dare say any attempt to sell in quantity would have the same effect. This might just do very well, but in limited quantities it will never make me very rich.