PYX Resources: Achieving volume and diversification milestones. Watch the video here.
What are you guys on about? If prices go up, then yes you are right BC only get $120 - but the balance is still "PROFIT" except it is used to pay off debt. Nothing wrong with that is there?
This was always a commodity play. Met coal pricing have slumped - If they recover, BC will recover. If they don't, neither will BC.
Avani can't buy at whatever price they want. Anything they do is a related party transaction and has to be at fair market price. Avani want the coal. To ensure they get a regular steady supply they have supported the business once again. They are more than $45m into this trade.
New management, new off-takes (I expect Integrity off-take will be next), more cash - and a restructuring of the old debt. Not much to dislike ??
PI's loosing confidence i think. Even if we assume BC is selling only 40,000 per month - over the last few sessions, HVOLB is up around ~$20 = almost $10m in extra profit. At current levels BC net margin (after all costs) is around $30 (imo).
At 40k per month = $14.4m net profit.
The pre-emption rights only allow the company to issue enough shares to fulfil their CURRENT obligations under options ALREADY granted. A large portion of these options are JCAM - who have conversion rights at 28p (which i would really welcome !!). These were awarded as part of their debt restructure. Adam also has conversion right from his original deal (from day 1) - and these have always been declared from the initial day 1 subscription agreement. Nothing in the 12% issuance / pre-emptions rights is new ! And like i said - the JCAM ones have a 28p strike price.
Anyone selling on the back of this - is not getting their facts straight.
So with Met at $230, FV = 39p
If Met increases by 10% ($253), FV = 63p
Met is now $245 - So FV should be around 50p
Market remains unconvinced. Not sure what the overhang is ? The AGM, Bonus queries, Production Doubts, Doubt on sustainability of current Met pricing ? - Prob all of the above.
AUS futures up another $11-13 /ton.
Platts should be heading up ~$10-20 soon - has been lagging a little lately. "If" we get another $20 hike - AND are able to lock it in - That will clear a lot / most of BC's debt.
Rally looks sustainable at the moment.