Member Info for GraphiteTech

Strategic Govt support, they want the jobs and the asset value unlocked. https://www.worldcoal.com/exploration-and-development/02082016/prairie-mining-receives-political-support-2016-2138/

Yes only a small number in issue, listed in Poland and Australia also. Look at Stanmore on the ASX for how a coal company can re-rate with a near term production coking coal asset.

No idea mate, general lack of awareness on the LSE for coal, most also do not differentiate between thermal/coking. Its like the difference between heavy low API oil and sweet 40%API low sulphur crude. Check out my ADVFN board for loads of decent posts and research.

Rally is looking sustained at the moment, coking coal whilst on a massive bull run is expected to sustain and consolidate its gains. http://www.economiccalendar.com/2016/10/28/coal-prices-rally-continues-at-full-speed-in-china/ One must bear in mind coking coal is up 200% since the 2016 low. What effect would oil at 100$+ have on a land based junior with 400mb of defined reserves at 25$ per barrel lift costs? Would suspect the mcap would be well over £1bn. PDZ mcap £32m. Same economics, not a sexy sector overlooked by most

Looking at between 70p-£1.

Analyst view from Platts on Coking Coal; PDZ is coking coal by the way. http://www.thehindubusinessline.com/news/coking-coal-price-on-fire-as-supply-fizzles-out/article9246390.ece But the surge in thermal coal prices may not last. First, in September, Beijing ordered its new mines to step up production . This will increase China’s domestic supplies by nearly 30 million tonnes a month from November. Also, China completed the winter booking and has a 12-million-tonne stockpile at ports that is sufficient for 20 days. Kannan expects pressure to build on thermal coal prices from next month. The outlook is not so clear for coking coal, though. Edwin Yeo, Managing Editor (Steel Raw Materials) of Platts, doesn’t foresee a meltdown in the short term. According to him, the coking coal shortage is acute and some steel-makers in China have had to shut down their blast furnaces. Steel-makers avoid this as re-igniting furnaces is a costly exercise. Yeo doesn’t agree. but some sources see a shadow of cartelisation in coking coal price surge, as three top producers control more than half the global trade

http://www.mining.com/aussie-coal-mine-sold-by-vale-for-1-to-reopen-next-year/ Stanmore picked up the Vale project for $1 last year and at the time had a $33m AUD mcap, recently it went above $150m. Parallels to the Debiensko project in that transaction and future stock appreciation curve I would say. Difference being Debiensko does not need the same logistics to market and hence cheaper lifting costs etc.

http://www.mining.com/all-these-australian-mines-are-reopening-thanks-to-the-rally-in-coal-prices/

Bear in mind coking coal price is over 200% higher since this article was produced; PROACTIVE FROM MAY http://www.proactiveinvestors.com.au/companies/news/161198/prairie-mining-ltd-pushes-ahead-with-strategic-polish-coal-project-68818.html Praire Mining Ltd pushes ahead with strategic Polish coal project Share 09:30 26 May 2016 Prairie Mining Ltd pushes ahead with strategic Polish coal project Prairie Mining Ltd (ASX:PDZ) has submitted a mining concession application at the Lublin Coal Project in Poland, where a pre-feasibility study (PFS) had confirmed the robust economics and technical viability of the project. In March, a Polish court had confirmed Prairie’s legal position as the only entity with the exclusive right to apply for a mining concession at the Lublin Coal Project. Significantly, the Lublin project holds an initial marketable coal product of 139 million tonnes based on JORC indicated reserves of 181 million tonnes. The PFS for Lublin demonstrates the potential to have some of the lowest operating cash costs (US$25/t FOR) for hard coal delivered into key European markets. The PFS estimates an operating margin of 69% and annual EBITDA of US$348.1 million over 24 years, supporting an expedited development plan for Lublin. The Lublin Coal Project is adjacent to the world-class Bogdanka longwall coal mine that has been in operation for 34 years and is the lowest cost hard coal mine in Europe. Industries in Europe continue to consume more than 300 million tonnes of hard coal per annum, with imports rising and increasing concerns over energy security and raw material supply. Prairie Mining is well funded with a cash balance of $13.3 million as at 31 March 2016.

https://www.worldcoal.com/exploration-and-development/08032016/lublin-coal-project-to-be-one-of-the-lowest-cost-global-coal-suppliers-in-europe-353/ Prairie Mining Ltd has announced the results of a pre-feasibility study (PFS) – prepared in accordance with the JORC Code (2012 Edition) – conducted on its Lublin coal project (LCP), located in the low cost and proven Lublin Coal Basin in south eastern Poland. Utilising the project’s initial marketable ore reserve estimate of 139.1 million t of coal, the project can support average steady state production of 8.0 million tpa ROM coal, yielding an average of 6.34 million tpa of saleable clean coal. Prairie’s Chief Executive Officer, Ben Stoikovich, said “The PFS has confirmed the potential to develop a world scale, multi-generational coal mine with strong cash flows.” Prairie has indicated the LCP’s fundamentals are extremely encouraging with average operating cash costs (inclusive of SG&A and royalties) during steady state production of US$24.96/t of saleable coal Free On Rail at the Mine Gate (FOR), which would postion the LCP to be the lowest cost supplier of coal into Prairie’s key regional European target markets. The high margin LCP is expected to achieve average earnings before EBITDA of US$348 million per annum (steady state). According to Prairie, this provides for high cash margins from the adoption of international best practice for the design and operation of the mine and coal processing.

You are more than welcome mate. Think I have found another multi-bagger here. Its got all the hallmarks; Massive Resource Off Radar Strong performance in the commodity. Low production costs. Near term production (Debiensko). Massive company maker (Lublin $340m EBITDA per annum). Safe Geo-political. Cash in the bank for medium term (£11m) Tightly held.

http://hotcopper.com.au/asx/pdz/

Lublin Coal Project ​ The Lublin Coal Project (“LCP” or “Project”) is an advanced, large scale premium coal project in south eastern Poland. The Project has attractive coal quality parameters, particularly within the 391 seam, with the potential to produce semi-soft coking coal, comparable to international benchmark semi-soft coking coals as well as semi-soft coking coals already produced in Poland. The Project is located close to well established regional rail and port infrastructure with underutilised bulk cargo capacity for low transportation costs within Poland, to regional European markets by rail, and to the seaborne export market through underutilised ports in the north of Poland.

Highest ever on the LSE, this monster is awakening.

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 http://www.pdz.com.au/uploads/1/7/9/6/17961663/161026_-_debiensko_acquisition_final.pdf Lublin Project http://www.pdz.com.au/uploads/1/7/9/6/17961663/160321_prairiemining_pfs_corporate_presentation_final.pdf Broker Note-Mirabaud March 2016. http://www.pdz.com.au/uploads/1/7/9/6/17961663/pdz_update_220316.pdf

http://www.businessinsider.com.au/coking-coal-prices-just-made-their-biggest-move-in-5-years-2016-8 http://www.mining.com/coal-rally-cost-cuts-help-teck-resources-swing-to-profit/ http://www.afr.com/markets/commodities/metals/coking-coals-rally-fires-up-iron-ore-20161025-gsa9yh http://www.mining.com/chart-no-stopping-insane-coal-price-rally/ http://www.businessinsider.com.au/is-it-a-bird-a-plane-no-its-the-coking-coal-price-2016-10 https://www.ft.com/content/87b8cbc3-dacf-390a-a9e9-c4e48ade02af http://www.businessinsider.com.au/the-explosive-rally-in-coking-coal-prices-may-not-be-over-yet-2016-10 http://www.theaustralian.com.au/business/mining-energy/mining-giants-including-bhp-rio-set-for-us18bn-coal-boost/news-story/f7ec8ea6ff3f578a36d22240587b48a2?nk=848c5475a62e5ca8701ae949975699f8-1477589548 http://www.mining.com/iron-ore-jumps-6-month-high-coking-coal-binge-continues/

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.

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..............

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

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).