Bargain coal play - huge upside

PAK

Cheap coal stock that seems to be flying under the radar.

Market Cap: 8.6m
SOI: 165m
Cash: $4.7m as at 14 April
Sector: Coal

Summary

Potential low capex high quality coking coal producer in Canada with current JORC resource 257MT. Fully funded for drilling program focused on defining and expanding JORC resources. Excellent infrastructure, train line 20kms from project with freight provider agreements available. Very experienced mgmt. with Geoffrey Hill as Chairman. Huge T20 that have recently been loading up. Current market cap has been discounted as a result of fires in the region last year has led PAK to be significantly undervalued compared to peers. I expect a MAJOR re-rate this year.

Notable Top Holders:

- Warwick Grigor indirectly holds 23% - Gregorach, Grigor Group, Far East Capital
- Mark Lochtenberg owns 6% - through personal holdings and indirectly through Rigi Investments. Rigi has solid history of investing in multis from the get go, including CLA, CLL, AML
- Geoffrey Hill, chairman of PAK, owns 13% - successful investor with huge $

TA-wise, breakout of darvas yesterday. OBV bullish. Small gap at 4.8c to be aware of. I see 10c as an easy first target.






Disclosure - bought first parcel yesterday at 4.9c. Looking to buy more under 5c if possible.

All IMO / DYOR​