EER - East Energy Resources

[Miner]

Hi
This share IPO prospectus has been lodged with ASX .
Appears to be a good share and the promoters are the same people who promoted RMA ENergy.
Does any one have any good / bad report against /for of this IPO?

Regards

Miner

 

[Wysiwyg]

Re: East Energy Resources

Hi
This share IPO prospectus has been lodged with ASX .
Appears to be a good share and the promoters are the same people who promoted RMA ENergy.
Does any one have any good / bad report against /for of this IPO?

Regards

Miner

Nup, no knowledge from me but without being too influential i do think your `tag`

Miner

tells people that you are a)stressed or b)want people to think you are stressed.besides that wall is emotionless.

 

[Sean K]

Re: East Energy Resources

Nup, no knowledge from me but without being too influential i do think your `tag` tells people that you are a)stressed or b)want people to think you are stressed.besides that wall is emotionless.

In the very least, I am confused....

Miner,

What's the stock code, and can you tell us more? Links?

Cheers.

 

[doctorj]

Re: East Energy Resources

I can't see a proposed listing date or a prospectus on the ASX website.

Have you got an electronic copy?

 

[surfingman]

Re: East Energy Resources

East Energy Resources Limited
Offer Opening 15th Nov
offer closing 5th Dec
expected listing date 13th Dec
$0.25

East Energy Resources is a coal focused exploration company which has recently acquired two exploration projects in Queensland, the Norwich Park and Blackall projects. These Projects are considered prospective for coal measures and the Company intends to undertake exploration work on the projects with the aim of further defining the coal measures and proving up a coal resource in accordance with the JORC Code.

http://www.eastenergy.com.au/

or prospectus
http://www.eastenergy.com.au/download.html

 

[shares]

Re: East Energy Resources

just because of this

... promoted RMA ENergy ...

East Energy will probably be incredibly hard to get into and if the same people work their magic like they did on RMA it will probably go up heaps

RMA (CODE:RMT) is currently trading at 1.81 over an issue price of 25 cents

 

[Miner]

Re: East Energy Resources

thanks all who participated in East Energy Resources thread . Sorry I could not see this to respond but saw you already got links to the prospectus and website.
Yes, the promoter of RMA are very smart and I am hoping they would do something to ramp the price to at least 50 cents within one month from listing.
But with only a small part offered for public stakes are high. Who has a friendly broker (BPS is hopeless as far I am concerned) who may have some holdings to distribute others ?

Regards

 

[Miner]

Re: East Energy Resources - EER

Hmm! In a sagging ASX market and with a high fall in DJI the East Energy Resources- EER has jumped to 75 cents today from yesterday's closing price of 67 cents. Should there be any speeding ticket from REACTIVE ASX WATCH DOG ?
[B]Extract from ASX
Closing prices are displayed for the last 5 days on which the security traded on ASX within the last 6 months.

Date Last % Change High Low Vol *
02 Jan 2008 0.640 4.92% 0.670 0.615 160,463
31 Dec 2007 0.610 5.17% 0.640 0.580 82,037
28 Dec 2007 0.580 9.43% 0.640 0.540 90,610
27 Dec 2007 0.530 6% 0.570 0.505 100,000
24 Dec 2007 0.500 13.64% 0.520 0.440 100,000
What is going on here ? Volume is rather low and is it management buying to push the price up ?

Considering it is only about a month from listing with few days market closed the hype is extraordinary .
Any update from you folks in the forum ?

Regards

 

[Bushman]

EER have started drilling at the Blackall prospect in the Adavale Basin in Qld.

Non-JORC compliant target is 70-90 mt of thermal coal. MD believes there is the scope to 'significantly' increase the resource. EER will be fast-tracking JORCing of Blackall.

Also hold another tenement in the Bowen Basin.

Coal is hot even though Qld government increasing royalties is not. Sorry - some pre lunch poetry.

 

[gresim25]

It looks like another one ready to pop?

nice announcement indeed - followed by nicer volume...

East Energy Resources doubles thermal coal resource at Blackall Coal Project to 1.2 billion tonnes

East Energy Resources (ASX:EER) today announced the company had doubled JORC inferred resource at its Blackall Coal Project in Queensland to 1.2 billion tonnes of raw thermal coal.

Further infill drilling is likely to upgrade the coal resource from inferred to indicated. The company said the coal seams at Blackall are low rank, low energy coals. Washability data indicates a medium ash product suitable for domestic thermal coal markets.

East Energy said it would work to upgrade the resource status from inferred to indicated after further infill and exploratory drilling.

 

[Miner]

This EER puzzles me.
The original promoter resigned .
Terrence Byrt is also the promoter of RMA which is now going south as far as it could .
the share prices started to jump and excellent announcement after Terence resigned. As the Chairman when announcment is good why he resigned ?
And look at the volume qualifies them to get a speeding ticket from EER if there is any acquistion planned

23 Apr 2009 0.205 36.67% 0.250 0.150 1,005,842 22 Apr 2009 0.150 20% 0.150 0.125 99,000
21 Apr 2009 0.125 -3.85% 0.125 0.125 30,000

Disclaimer
I hold a small parcel from the IPO stage

 

[Miner]

As I said half an hour ago things are rather strange for EER.
Good result is understandable but the volume of transaction all of sudden raises question so is the downslide with significant volume compared to its trading volume in the begining of this week. In couple of hours the volume is so much !!


EER 0.160 -21.95% 0.145 0.160 0.205 0.205 0.160 267,420

 

[enigmatic]

Not really to keen on this one..
currently it has 22,300,002 shares

with it currently 89.4million non-renounceable rights issue with 178.8million free options.

the rights issue is for 10cents and options 20cents till march 2011.. which to me means the shares are going to be diluted.

 

[jonojpsg]

Spotted this one the other week when it was on the top movers list (on again today, up 50%) - looking at doubling their inferred coal resource to 2.4bn tonnes! Don't know much about coal but that seems an awful lot of coal for a company valued at about $20m?? Anyone got any input to clarify what 2.4bn tonnes is worth?

 

[DVEOUS]

Spotted this one the other week when it was on the top movers list (on again today, up 50%) - looking at doubling their inferred coal resource to 2.4bn tonnes! Don't know much about coal but that seems an awful lot of coal for a company valued at about $20m?? Anyone got any input to clarify what 2.4bn tonnes is worth?

This takes less than 10 seconds to answer, when doing a Google search.
http://www.indexmundi.com/commodities/?commodity=coal-australian&months=60
Approx USD$100 per metric tonne.
Subtract production costs per tonne.
You do the math.

 

[McCoy Pauley]

Is this the company in which Noble Group took ~20% stake this week? I'm too tired to look that up, but it seems to ring a bell.

 

[jonojpsg]

This takes less than 10 seconds to answer, when doing a Google search.
http://www.indexmundi.com/commodities/?commodity=coal-australian&months=60
Approx USD$100 per metric tonne.
Subtract production costs per tonne.
You do the math.

Yep, thanks for that I'm more interested in some measure of what dollar value other coal companies are being given for large inferred resources, eg what EV/Mt do other junior coal companies trade at?

CHeers

 

[springhill]

Yep, thanks for that I'm more interested in some measure of what dollar value other coal companies are being given for large inferred resources, eg what EV/Mt do other junior coal companies trade at?

CHeers

This may help, read an issue of Resource Stocks the other week and PRE-GFC analysts assigned 30cents of market cap per ton of unmined coal..... not sure how this takes into account the number of shares on issue, but i believe thats what was in the publication.

 

[jonojpsg]

This may help, read an issue of Resource Stocks the other week and PRE-GFC analysts assigned 30cents of market cap per ton of unmined coal..... not sure how this takes into account the number of shares on issue, but i believe thats what was in the publication.

That's the sort of info I was after, thanks springhill

Even if we knock that back to a post-GFC rate of 10c per tonne, that's still at least a EV of $120m potentially rising to $200m if they prove up 2bn tonnes. That's why I'm interested, and surprised that the SP is not higher?

 

[springhill]

That's the sort of info I was after, thanks springhill

Even if we knock that back to a post-GFC rate of 10c per tonne, that's still at least a EV of $120m potentially rising to $200m if they prove up 2bn tonnes. That's why I'm interested, and surprised that the SP is not higher?

Jono, going by the coal specs i have my eye on i believe the market factors in the full 30c to the market cap.
Example: Bathurst Resources
100 million shares on issue
Targeting a minimum 50mt coal
50mt x 0.30 = $15 million

Current share price of Bathurst is 0.155 giving it a market cap of $15.5 mill.
Upper end of target atm is 90mt if this proves should equal MC of $27 mill or 0.27 cps.

So if you use 10c you may be deceiving yourself with your calcs and wrongly seeing a lot more growth than there really is. To be safe i'd use 30c, just my opinion.
Good luck!