So where are we at. Since Mid September we were round the 50 cent mark as far as share price. * We have an announcement of Quality - high volatile bituminous thermal coal. - 18th Sept * Ora Banda gold Non core assets sold so that JAL can concentrate on Coal Mine. - 1st Oct * Then an announcement that Coal quality evaluation confirmed Basin coal as having potential for the Pulverised Coal Injection (PCI) export market. - 15th Oct * On tuesday there was an announcement that JAL are looking at doubling their production Goal to 1,000,000 tonnes per annum. * JAL have 123 million tonnes of raw coal with significant exploration upside possible. * JAL have conducted further drilling and assay results are expected next few days. * JAL is in discussions with potential domestic and international buyers of coal when produced late 2010.
On the not so up side, capital costs have increased to $20 million so cash needs to be found (maybe a SPP or raising of some sort?). Also Production as stated is now set for end 2010.
On the up side - Share price at June 2009 levels now (31.5 cents)so at lows from past 5 months. Good time to get in or top up. Chess Capital felt convinced of a 12 month target of around $1.20 thats around 400% from todays price. Low market cap with only around 62 million shares on issue. Top 20 hold 52% of these shares so no much out there.
So all feels good. Not sure why SP has declined - may be lack of interest?? Any way this is just a summary of why i hold and feel the SP will recover in due course.
Luck to all.
JAL Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
