Prairie Mining Share Discussion Threads

[keya5000] 15/3/2017 08:04

someuwin,

Cannot see why every man and his dog are not chasing this.

[bandflex] 15/3/2017 08:02

The herd will spot this at some point.

[someuwin] 15/3/2017 08:02

Yup - not just one, but TWO Globally significant coking coal projects.

[keya5000] 15/3/2017 07:57

Jeez thats even better than I would have hoped.

[bandflex] 15/3/2017 07:50

Average operating cost $46 p/tonne

2017 spot price $160 p/tonne

Average Steady State EBITDA US$282 million

That's just the Debiensko mine.

Mirabaud suggest a share price of A$1.00 for the Lublin mine alone so its easy to see where the 90p Beaufort target comes from when you take into account both mines.

[someuwin] 15/3/2017 07:17

Wow - it doesn't get much better than that!

[someuwin] 15/3/2017 07:10

RNS Number : 5130Z

Prairie Mining Limited

15 March 2017

PRAIRIE MINING LIMITED

NEWS RELEASE | 15 March 2017

SCOPING STUDY INDICATES DEBIENSKO MINE RESTART WILL DELIVER LOWEST COST HARD COKING COAL INTO EUROPE

Scoping Study OUTCOMES:

-- Scoping Study illustrates potential technical viability and robust economics for the fully permitted Debiensko mine to be a large scale, lowest cost and long life premium hard coking coal supplier

-- Globally significant project with 2.6 Mtpa hard coking coal production from a JORC Resource of 301 Mt

-- Cash costs of approximately US$47 per tonne (steady state average) potentially positions Debiensko as by far amongst the lowest cost suppliers of hard coking coal into Prairie's key European markets

-- High potential cash margins result in forecast EBITDA (average steady state) of US$282 million by adoption of international best practice in mine design
-- Key Scoping Study results for Debiensko are summarised as follows:
o Hard Coking Coal Production (Steady State Ave) up to 2.6 Mtpa
o Total Operating Costs FOR Mine Gate (Steady State Ave) estimated US$47 per tonne

o Annual EBITDA (Steady State Ave) up to US$282 million

o Life of Mine Cumulative Free Cash Flow estimated US$5.4 billion
o Initial Mine Life from First Production up to 26 years
o Life of Mine Saleable Hard Coking Coal Production up to 65 Mt

-- Highly favourable market fundamentals as Europe continues to consume 47 Mt of hard coking coal annually, 85% of which is imported; Debiensko coking coal is expected to enjoy strong demand from steelmakers, with substantial netback pricing advantages given proximity to regional customers

-- Access to well established and already connected regional rail infrastructure with underutilised bulk cargo capacity for low transportation costs within Poland to regional Central European and wider European customers

-- Leveraging off existing infrastructure at the Debiensko mine site potentially results in exceptionally low capital intensity of US$197 per tonne of annual saleable production capacity compared to an industry average of over US$401 per tonne for global hard coking coal mines developed in the last decade
-- Significant positive social and economic benefits for regional development, jobs creation and re-industrialisation through re-development of a previously operating mine

-- Prairie's Polish and international management team with experience in developing, operating and financing world-scale coal projects, will now proceed with formal feasibility and other technical studies

Prairie's Chief Executive Officer, Mr Ben Stoikovich, said: "The Scoping Study results confirm Debiensko's potential as a Tier 1 premium hard coking coal asset by virtue of the significant potential production scale and resource size, exceptionally low estimated cash costs and low capital intensity of the mine. The Study focused on the near-term development of highly profitable coal seams at low capital and operating costs. The mine has the potential to deliver 2.6 million tonnes per annum of premium quality hard coking coal at US$47 per tonne placing it right near the bottom of the global cost curve. Blessed with the presence of existing rail, road, power, water and other mine infrastructure the project has one of the potential lowest capital intensities for a new hard coking coal mine and is fully permitted for development. Preliminary analysis confirms that Debiensko hosts premium hard coking coals of comparable quality to internationally traded benchmark hard coking coals and the potential to obtain significant pricing premiums against imported seaborne coals owing to transport advantages (netbacks) of some US$15 per tonne. Our initial marketing studies indicate that Debiensko hard coking coal will likely be in strong demand in the Central European region, given the highly favourable regional supply / demand dynamics.

It is time to re-affirm Poland's status as Europe's premier exporter of hard coking coal, which is so vital for European industry. By introducing international best practise into the Debiensko project, Prairie's highly experienced management team is well positioned to restart this Tier 1 asset, which will have huge social and economic benefits for regional development."

[lord gnome] 14/3/2017 17:11

Nice to have got here before the crowd for once. Tried to add this morning before I went out. Buy price was then 34p. Couldn't get any quote online and didn't have time to hang about, so I was unable to buy more. Bah!

[keya5000] 14/3/2017 15:52

Yes good points bandflex.

Do not forget Lublin either.

[bandflex] 14/3/2017 15:50

For those who like me only stumbled on this today.
From the 8/03 RNS -

"-- Marketing Study by CRU confirms Debiensko's premium hard coking coal will have large pricing and cost advantages when selling to steel makers across Central Europe and wider EU

-- Estimated cost to deliver product from the Debiensko mine to a major regional customer in Central Europe of only US$4.60 per tonne, providing a large pricing and cost advantage compared to imported hard coking coal from:

o Australia (49% of European imports) - delivery cost of US$37.70 per tonne;

o USA (29% of European imports) - delivery cost of US$33.50 per tonne; and

o Russia (5% of European imports) - delivery cost of US$26.20 per tonne. "


"In 2016, Europe imported approximately 40Mt of hard coking coal, of which 49% came from Australia. It costs over US$37 per tonne to transport coal from Queensland in Australia, and to deliver it into a steelworks in Central Europe can take up to 60 days. Coal from the Debiensko mine can be delivered to these same steelworks for less than US$5 per tonne in under 24 hours."

and fromm 22/2 RNS -

"Rail, road, power and water infrastructure requires only minor refurbishment and upgrades to support full scale mine production at Debiensko, with a total estimated cost of only ~US$10m "

"fully permitted with a 50 year concession"


Under $5 delivery cost, fully permitted, and at the centre of a huge European market, this could be massive.

[someuwin] 14/3/2017 14:43

Looking very strong on Warsaw exchange.

[someuwin] 14/3/2017 11:42

2017 - two very important catalysts

The two key catalysts in 2017 are Debiensko’s scoping study due this month (March) and China Coal’s Jan Karski BFS due 3Q. We expect the Debiensko study to be a major catalyst, showing attractive economics and a much higher value than is priced-in by the market. Jan Karski’s Chinese BFS is a major milestone towards financing and construction.

[johnyee 7] 14/3/2017 09:08

Can only buy 500 then nt for anything bigger.

[bandflex] 14/3/2017 09:06

This is interesting from the nextminingboom link of someuwin -

"Even the new-age lithium-powered Tesla cars require over half a tonne of coking coal to manufacture the required steel.

So as lithium investors pile into lithium stocks, they may be forgetting that any energy-storage/electric-car/new-age revolution will require a lot of steel, and by extension, coking coal."

[bandflex] 14/3/2017 08:52

From the Beaufort note -

"Debiensko’s value is also not remotely reflected in the current share price. A scoping study is due later this month which should act as a major catalyst."

and todays RNS-

"The halt was requested by the Company pending an announcement regarding a Scoping Study at the Debiensko Hard Coking Coal Project"

Could be a good month for PDZ.

[someuwin] 14/3/2017 08:37

Can't believe how quiet this board is.

Peeps are missing an absolute blinder here.

[keya5000] 14/3/2017 08:09

Buy before the main event!

[someuwin] 14/3/2017 08:05

Beaufort Securities 90p target = multi-bag from here.

[someuwin] 14/3/2017 07:08

Here we go!

"Prairie Mining Limited

14 March 2017

PRAIRIE MINING LIMITED

NEWS RELEASE | 14 MARCH 2017 | ASX/LSE/WSE: PDZ

ASX Trading Halt

Prairie Mining Limited ("Prairie" or "Company") advises that trading in the shares of the Company will be halted on the Australian Securities Exchange ("ASX") effective from Tuesday 14 March 2017. The halt was requested by the Company pending an announcement regarding a Scoping Study at the Debiensko Hard Coking Coal Project.

The trading halt will remain until the earlier of an announcement to the market regarding the above or the opening of trade on ASX on 16 March 2017.

Trading in the Company's ordinary securities will continue as normal on the LSE and WSE during this period."

[someuwin] 13/3/2017 10:23

Currently up over 4% on Polish exchange.

[someuwin] 10/3/2017 07:51

Nothing we didn't know in the results. All looking good.

-- Coking coal continues to be classified by the European Commission as the third most economically important "critical raw material" for the European economy.

-- Cash on hand of $13.1 million and CD Capital's right to invest a further A$68 million as a strategic partner places Prairie in an excellent financial position to progress with its planned development activities at Debiensko and the Jan Karski Mine.

"Results for the Scoping Study are expected to be finalised in the coming days."

[someuwin] 08/3/2017 10:15

Lots of buying now.