Prairie Mining Share Discussion Threads

[lord gnome] 16/3/2017 19:21

You may be right. I live in hope!

[csmwssk12hu] 16/3/2017 13:46

Chinese will buy this outright £1 per share imho dyor

[ianbag] 16/3/2017 09:17

Gives plenty of opportunity to build a decent stake before the herd arrive later in the year anyway.

[ianbag] 16/3/2017 09:16

asx price equates about 35p here

[someuwin] 16/3/2017 09:11

Yup - nothing wrong with a bit of profit taking.

Buy the dips though imo because we still have the Chinese BFS for PDZ's Jan Karski project later this year. Which will be a major milestone towards financing and construction and will see the share price surging to even higher levels.

[plentymorefish] 16/3/2017 08:33

just giving back a little bit of a stellar rise earlier in the week.....healthy imo

[jamie62] 16/3/2017 08:30

Why the fall?

[ianbag] 16/3/2017 08:12

yes it was up 19% on ASX to $0.56

[mostro] 15/3/2017 20:52

Any news from the Aussie exchange??

[someuwin] 15/3/2017 12:48

"...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."

[csmwssk12hu] 15/3/2017 12:36

I keep buying every chance I get its just a no brainier 282m per year for under 50m!

[someuwin] 15/3/2017 11:30

Can buy £1k but not £2k online.

[someuwin] 15/3/2017 11:00

I'm not selling any of these for a very long time.

What PDZ is doing is of vital importance to not just Poland but Europe too. Any obstacles (of which I can't see many) will be removed to make it happen.

Prairie's Chief Executive Officer, Mr Ben Stoikovich, said:

"...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."

[someuwin] 15/3/2017 09:14

...They just upgraded - see above post.

[ianbag] 15/3/2017 09:09

agreed - I also think the broker target of 90p is a little light £1.15 to £1.20 is my target

[someuwin] 15/3/2017 09:08

Beaufort Securities upgrade target to 104p


Prairie Mining (LON:PDZ, 37.50p) – Buy

Prairie Mining has published excellent results from the Debiensko Scoping Study, its premium hard coking coal project in Poland. Based on a $142/tonne hard coking coal price, the Scoping Study delivers an NPV8 of $1.16bn, post tax. Other highlights include annual production of 2.6Mt of hard coking coal, operating costs of $47/t and steady state EBITDA of $282m. This will be an underground longwall operation with panels 250m by 1.6km. Upfront capex of circa $500m is helped by an existing rail connection, and makes Debiensko a very attractive project in terms of capital intensity (capex/annual production). It's size (mid to large scale) and low cost means it is a Tier 1 project.

Our view: These are very good numbers which clearly demonstrate the commercial and strategic value of Debiensko. Although scoping level, previous owners did a feasibility study on Debiensko and it borders two operating coking coal mines. As a result we regard the operating costs, capex and annual tonnage estimates to closely reflect what a feasibility study will produce. For example the mining inventory for the first 14 years are resources in the indicated category, the coal seams are classified by the Polish system as very easily and easily mineable, and the faulting scenario is well understood due to historical mining of the upper seams. The point is, we don't expect any surprises as Debiensko is fast tracked through to feasibility stage and construction, currently targeted to start in 2019.

We initiated on Prairie on March 1st at 27p with a 90p target, anticipating good Scoping Study results. This morning's result exceeds our Debiensko NPV of $750m (albeit using a slightly higher coal price) and we upgrade our target price to 104p. Given the low operating cost and low capital intensive nature of Debiensko, plus the fact Europe imports most of its coking coal, we believe it has high commercial and strategic value and should be easily financeable. We reiterate our BUY recommendation.

[csmwssk12hu] 15/3/2017 09:04

Been here for a while now market not even begun to realise potential here

[ianbag] 15/3/2017 08:50

Yes mostro we will see mid evening here how they see things in Oz so expect another good opening here tomorrow

[mostro] 15/3/2017 08:42

May be interested when trading resumes in Aus tomo.

[bandflex] 15/3/2017 08:37

From the scoping study for the Dediensko mine -

NET PRESENT VALUE

The (ungeared) pre-tax Net Present Value ("NPV") is US$1.503 billion at an 8% discount rate (real), and the (ungeared) IRR is 27.2%. Debiensko is expected to exhibit levels of profitability that would contribute value to Prairie shareholders.

Table 13: Debiensko Net Present Value
----------------------------------------------
NPV (8% real, ungeared) IRR
----------- ------------------------- ------
Pre-Tax US$1.503 billion 27.2%
----------- ------------------------- ------
Post-Tax* US$1.158 billion 24.0%

[bandflex] 15/3/2017 08:18

Just to clarify for anyone new to this company the Lublin and Jan Karski mines are the same mine.

[keya5000] 15/3/2017 08:16

someuwin,

Bandflex is right but we forgot the Chinese mention.

Its like 500m barrel onshore find with another similar one up the road that you have a JV with Exxon on....

[someuwin] 15/3/2017 08:14

Keya agreed - especially as the Chinese are already on-board here...

"Prairie Mining and China Coal, the second largest coal mining company in China and one of the world's most advanced and prolific shaft sinking and total underground coal mine construction companies, have signed a landmark Strategic Co-operation Agreement to advance the financing and construction of Prairie's Jan Karski Mine in Poland."

[keya5000] 15/3/2017 08:09

LOL so true but that oil tiddler is onshore also with the lowest recovery costs you can imagine.

[bandflex] 15/3/2017 08:08

its like an oil tiddler that struck 500m barrels and ignored by the herd.