Top Gainer: Coalspur (CPL)

 Closing price  $1.615
 Change  +0.175
 % change  +12.2%

 

Down 27% in the 5 weeks to yesterday and 37% off its all-time high hit in January this year, Coalspur bounced back strongly on Monday, jumping 12.2% to be the day’s top gainer.

Formerly Xenolith Resources, Coalspur is an Australian coal exploration company with its major project being the Vista Coal project in Alberta, Canada. 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 Monday’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 dual-listed on the ASX and Toronto Stock Exchange.

According to Coalspur, Vista and Vista South cover approximately 32,000 hectares and hold 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, six analysts have a buy on CPL, one has a hold, none have a sell, compared to three months ago when four had buys and two had holds. 

 

Chart: Share price over the year to 15/08/2011 versus ASX200 (XJO)

Stock code: CPL

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