Top Gainer: Coalspur (CPL)

 Closing price  $1.765
 Change  +0.085
 % change  +5.1%


After being yesterday’s biggest loser – falling a whopping 9% – Coalspur was back on the winner’s list and was the day’s top gainer, rising 5.1% to $1.765.

Formerly Xenolith Resources, Coalspur is an Australian coal exploration company with its major project being the Vista Coal project in Alberta, Canada. Up 100% for the year, it was a star stock at the end of last year/beginning of 2011, with the stock tripling in value in just over three months to hit $2.30 on Jan 17th. It’s been a choppy ride since, with the share price steadily retreating until yesterday’s jump.

Coalspur describes itself as “a coal exploration and stgelopment company that is currently advancing the Vista Coal Project and the Vista South Coal Project, which are located within the province of Alberta, Canada.” It is dua-listed on the ASX and Toronto Stock Exchange.

According to Coalspur, Vista and Vista South covers approximately 32,000 hectares and contains a coal resource base of 1.37Bn tonnes of low sulphur, high volatile bituminous, export quality thermal coal with over 1.0Bn tonnes (74%) of the resource in the Measured and Indicated category. “A pre-feasibility study was recently completed on Vista which confirmed its potential to become North America’s largest dedicated export thermal coal mine and will place Canada as an important strategic first world alternative of export thermal coal supply to the rapidly expanding Asian Pacific economies,” it says.

There’s more information in the company’s presentation at February’s BMO Metals & Mining Conference.

Andrew Harrington, analyst, Paterson Securities picked CPL just before it ran in our article “Takeover Targets: 8 Junior Coal Stocks” from October 2010. To ensure the upside survives well beyond some short-lived share price appreciation, Harrington’s favoured junior coal stocks – with CPL at the top of the list – include those better positioned in the capital and infrastructure stakes. “CPL is a thermal coal play with a rare combination of assets close to supporting infrastructure at Alberta, Canada. Based on the positive results denoting export quality coal, the explorer commenced a drilling program on its Vista South Coal Project,” he said. 

Based on Thomson Reuters data, 86% of analysts have a buy on CPL, 14% have a hold, 0% have a sell, compared to three months ago when 100% had buys. 


Chart: Share price over the year to 28/06/2011 versus ASX200 (XJO)

Stock code: CPL

Charts: Coalspur Mines Limited

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Investor Centre: Coalspur Mines Limited



Biggest Loser: Bow Energy (BOW)

 Closing price  $0.85
 Change  -0.05
 % change  -5.6%


After hitting a 12-month low of 73.5 cents in mid-May, BOW had bounced somewhat, steadily rising over the past month to hit 91.5 cents last Friday. With today’s 5.6% tumble it is now down 25% for the year.

According to its website, BOW’s “primary business is the discovery and commercial production of oil and coal seam gas fields with projects in several of Australia’s producing Basins”. The focus does appear to be on exploration of coal seam gas (CSG), although it is also involved in oil exploration. It has eight CSG projects in Queensland within the Bowen and Surat basins. The next step for BOW is to become a fully fledged producer to supply gas to local and international markets.

Back in February this year John Young, Wilson HTM resources analyst had a $1.80 target on BOW. “Rerating catalysts include achieving commercial flow-rates at its Blackwater and Norwich Park projects, conversion of 3P to 2P reserves and securing major gas supply contracts,” he said. Although it’s a year old now, you can access one of Young’s previous reports from last year on the Bow Energy website:

Bow Energy Limited – Reserve targets and RSPT

Based on Thomson Reuters data, 100% of analysts have a buy on BOW, no change from 3 months ago, although it must be noted that there are only two analysts covering the stock. 


Chart: Share price over the year to 28/06/2011 versus ASX200 (XJO)

Stock code: BOW

Charts: Bow Energy Limited

More news: Bow Energy Limited

Investor Centre: Bow Energy Limited