LOD - Lodestone Energy

[YOUNG_TRADER]

Re: LOD - Lodestone Exploration

Hey guys,

Just a quick one to let everyone know I reckon LOD is a very very cheap Coal play,

Its mkt cap is like $7m-$8m

and it has acquired some historical Qld Coal deposits


There will be an experts report out soon which should outline the size of the historical deposits and give targets


Its current mkt cap is very small when compared to others in the area such as BWN MEE LNC CXY and others


It has moved up since the ann of the acquisition and I have bought shares from 4.5c-5.6c with my avg being well above 5c

More info to come,

Spec, risky blah blha, please don't come on here looking for Earnings and profit etc etc this is kinda like a re-con in that it has a new director on board who is at the helm sterring LOD into Coal

DYOR and decide

Cheers

 

[YOUNG_TRADER]

Re: LOD - Lodestone Exploration

Here's more info as promissed about the acquistion

The 2 things I like most are the fact that

a) unlike most coal plays which have mkt caps of $50m - $100m+ LOD's mkt cap is only $7m-$8m which is just too cheap given how hot the sector is

b) They cearly have historic deposits/mines which imoo is much much better than just spec exploration grounds

 

[Gekko]

Re: LOD - Lodestone Exploration

Here's more info as promissed about the acquistion

The 2 things I like most are the fact that

a) unlike most coal plays which have mkt caps of $50m - $100m+ LOD's mkt cap is only $7m-$8m which is just too cheap given how hot the sector is

b) They cearly have historic deposits/mines which imoo is much much better than just spec exploration grounds

Hey YT

The stock looks interesting but looking at the chart it looks to have run a bit don't you think?

Would you sit and wait a bit to see if it steadies or consolidates a bit?

Thanks

 

[mobcat]

Re: LOD - Lodestone Exploration

YT you are unbelievable how the hell did you find a waaaay undervalued COAL stock with no sovereign risk in this market ATM has got me .

Coal is the running sector ATM good work mate ..........you must of put the hours in to un earth this sleeper well done


LOD,s mcap under $10 million on peer comparison is sure showing value ATM YT time will tell but with the oppies nearing expiry head office should be updating the historic deposits ASAP, new FY i would think time line wise , looks the goods for my PF im on board

 

[YOUNG_TRADER]

Re: LOD - Lodestone Exploration

Obviously if you look at the chart it has risen strongly but look at it closer and try and understand the following

LOD was a stock that was out of favour and drifting lower, no doubt getting Tax Loss selling too as June 30th approached

Now last week the announced the acquisition of some historic coal mines/deposits

This is a company chaning event and yes while the mkt is slowly responding there is im my opinion plenty of upside left,

The company has said that they will release an independent exeprts report on the projects,

Such a report will no doubt contain further details on these historic coal mines and their size/potential

For me I believe such an ann will cause a significant re-rating towards a much more peer comparable mkt cap of say $20m or so


But as I said DYOR and make up your own mind, also have a look at peer mkt caps and see how many Qld based Coal companies have a mkt cap of under $10m

 

[Adam A]

Re: LOD - Lodestone Exploration

Does any one know if they are still proceeding with their gold tennents?

With a new director hopefully theyll keep their share holders more in formed

The coal does sound worthy of further research

 

[Gekko]

Re: LOD - Lodestone Exploration

Hey YT

I do agree new projects and direction usually change a companys fortunes for the better and should as you say cause a 're-rating' but was just pointing out that it has moved up a bit

When you look at the chart vs the All Ords its very impressive actually

So what sort of price target do you think this has written on it?

I agree cheap when compared to others like Mantle Cougar and Metex but they are further along in progress

But yes all in all looks very cheap indeed

 

[YOUNG_TRADER]

Re: LOD - Lodestone Exploration

Hey Mobcat, unfortunately not all of my hard yard research hours pay off as the mkt is a funny beast which just seems to be obssesed with Coal atm, but I'm pretty confident my research on LOD will pay off

and yeah there's opies too guys, 30m 5c exercise expiring in a few weeks (which makes me think the company will do all they can to get them in the money) I grabbed someopies at 0.006 - 0.01 call me nuts but I just couldn't pass up the leverage

Gekko I'm not sure about price target, the fact is that

a) the company is ridiculously cheap when compared to peers

b) the company have two historical coal mines/depsoits

c) an experts report will be out soon to give us an idea of the size/target

Points a) and b) would on their own justify a $15m mkt cap = 12c or something

Point c) though is the real varaible, I mean if the company comes out with a 50Mt historical JORC/Target or something then I expect this to be a $25m mkt cap = 20c

Cleary you can see why I think its cheap, however how cheap will depend on how big these deposits are, particularly the Veresdale Scrub Deposit (EPC 1302) and the Historic Strathnaver Colliery/Bromelton Project (EPC 1299)

 

[Gekko]

Re: LOD - Lodestone Exploration

Well LOD looks to be holding steady on a crash day go figure. soo to RIV and a few other coal stocks i hold. They are getting all the interest arent they

Here I was thinking that perhaps I could get shares today in the mid 5's

YT whats this experts report and how do you know the comany will release it soon, is it something they have to do or something or are you hopeful?

 

[YOUNG_TRADER]

Re: LOD - Lodestone Exploration

Gekko if you read the anns properly you'll see that the company announce that they will be releasing an experts report, so no not hopeful, its a fact


Also the fact that the opies expire very shortly makes me think they will get it out with at least 2 weeks beofre expiry so as to get as many exercised as possible

Hence my call of next week

LOD has been very impressive of late, really going against the grain of the overall mkts, then again its still so cheap for the potential it could hold

Bring on the experts report I say

 

[Gekko]

Re: LOD - Lodestone Exploration

Gekko if you read the anns properly you'll see that the company announce that they will be releasing an experts report, so no not hopeful, its a fact


Also the fact that the opies expire very shortly makes me think they will get it out with at least 2 weeks beofre expiry so as to get as many exercised as possible

Hence my call of next week

LOD has been very impressive of late, really going against the grain of the overall mkts, then again its still so cheap for the potential it could hold

Bring on the experts report I say

Wow these are really starting to move. My RIV up strong too.

I have finally come aboard with some. Not all yet.

I read all the compnay info and there sure was alot released recently and it does look too cheap and its strange that they didn't restart mining after the War finished

A question though. Do you think they can get into production soon?

 

[YOUNG_TRADER]

Re: LOD - Lodestone Exploration

I have no idea how long LOD will take to get into production and I'm not going to make any guesses like that,

If its production/profits and dividends your after perhaps stick to RIV

If your after a cheap coal stock with a tiny mkt cap when compared to its peers that offers alot of potential upside ie 10c-20c (who knows where) then that is LOD in a nut shell

The company has stated that it has a COAL deposit at Veresdale Scrub Deposit (EPC 1302) and details of its size and target will no doubt be in the experts report

The company has alos said that Strathnaver Colliery/Bromelton Project (EPC 1299) was a historic mine so perhaps yes this could get back into production alot easier than say greenfiels, but just how soon is anyones guess

Having said that the company seems pretty confident it can get a JORC out pretty quick

 

[shaunm]

Re: LOD - Lodestone Exploration

I've been watching this one go up and down today, as well as watching the NSL parade.
I have so much tied up in NSL & CFR that I can't buy a worthwhile size parcel in here.
I'll have to check all the drawers at home this weeknd and keep a close eye on this next week.

When is the update expected again?

 

[exberliner1]

Re: LOD - Lodestone Exploration

I must admit that I got a bit burned on this one about a year ago .... everything looked great and positive and then absolutely nothing happened.

Time to dig out the old research and look into it again.

Although on the face of it the new projects do look most interesting and are worth an upward rerating of a few cents on their own..... which on a 6c stock could translate into a useful percentage gain.

Well done YT for highlighting this one.... hopefully it will yield better results than it did for me a year ago.

Greeting from Kiev

EB

 

[YOUNG_TRADER]

Re: LOD - Lodestone Exploration

Hey EB,


Yeah I saw that based on chart and research of old ann's last night, but then many companies that have even gone into liquidation and been recapped have done amazingly well, see NSl for case in point (health company turned Indian Iron Ore play)

To me LOD is kinda like a recap, they have brought on a new director a few weeks ago, this director looks very capable, he was chairman of BMX leading it to the discovery of its major Gingko Mine (now under take over), he was also a chairman of AOE from pre lisiting of $1m mkt cap to now over $300m+

Now they are acquiring some historical coal deposits which shall become their core focus, thus it seems kinda like a re-cap, ie new man at the helm, new core projects, a bit of new cash etc etc


p.s. Exberliner1 "Kiev"? you leave Aust????

 

[YOUNG_TRADER]

Re: LOD - Lodestone Exploration

Ok well I was taking a closer look into exactly where LOD's projects are, all I could see was that they are in Qld around a town called Beaudesert

Well guess who's next door?

LNC and MEE, yes that right 2 of the major Qld Coal/Coal to Liquids players

Make of it what you will but I loved BMY because it was next door to AGO and others ie nearology, so I kinda really like the fact that tiny LOD is next door to LNC and MEE

See all the maps and make of it what you will

 

[alankew]

Re: LOD - Lodestone Exploration

YT although the driver for the Sp at the moment is obviously coal noticed in one of their anns that they have some U tenements in Botswana which according to their anns is 7th in terms of being a U friendly place to mine.As we all know,everybody loves an African U miner(as the actress said to the bishop)

 

[grace]

Re: LOD - Lodestone Exploration

Ok well I was taking a closer look into exactly where LOD's projects are, all I could see was that they are in Qld around a town called Beaudesert

Well guess who's next door?

LNC and MEE, yes that right 2 of the major Qld Coal/Coal to Liquids players

Make of it what you will but I loved BMY because it was next door to AGO and others ie nearology, so I kinda really like the fact that tiny LOD is next door to LNC and MEE

See all the maps and make of it what you will

Not trying to be smart, but LNC's pilot project is near Chinchilla, nowhere near Beaudesert. To my knowledge (and I am heavily invested in Linc), nothing is going on on that plot at Beaudesert. Not saying that it will stay that way forever though. Cheers Grace.

 

[alankew]

Re: LOD - Lodestone Exploration

Word of caution here,not having a go at YT or others but if you take a look at HC it was the talk of the town yesterday so might pay to wait till the dust settles if you are wanting in

 

[alankew]

Re: LOD - Lodestone Exploration

For those who lie a bit of risk and want more leverage there are options on this but they are short dated,expiry July 21st and 5c exercise,LODO.If all the talk and more importantly momentum come to anything they offer great upside.Current sp of heads is 7.4c,with 600k oppies available at approximately 2.4c