Coal Research Report - Prices, Sector Developments, Case Study Cloudbreak Resource Coal Prospects
Research Report on Coal - Prices, M&A Activity, Investment Strategy, CCS Technology. Case Study - Analytical Review of Coal Prospects for Cloudbreak Resources Ltd. (TSX-V: CDB) (Frankfurt: C6K) (US Listing: CUDBF.PK) -- Exceptional Risk-Reward Scenario Presented as Drilling Permits Approved on One of the Strongest Land Packages for Coal Exploration in Saskatchewan.
New York, NY (PRWEB) May 19, 2009 -- Madison Avenue Research Group has published a report which provides details on current and forward looking pricing of coal and coal related M&A activity, investment strategy, and Carbon Capture and Storage (CCS) Technology. The report also provides a case study on Cloudbreak Resources Ltd. (TSX VENTURE: CDB) (Frankfurt: C6K) (US Listing: CUDBF) and the opportunity afforded investors as CDB.V has now received approval for coal drilling permits and prepares for a planned Q3 2009 drill program. CDB.V's Dowd Lake Coal Property is in the same Saskatchewan coal trend as Goldsource who experienced outstanding technical and market success in their coal exploration efforts within the last year. Each of Cloudbreak's planned diamond drill holes targets the near surface expression of the Cretaceous Mannville Formation which is the target stratigraphy of Goldsource's "Durango Trend".
The abridged report may be viewed free of charge at: http://madisonaveresearch.com/topcoal.htm online.
Excerpts from report:
1) Report on Coal: General consensus is that thermal coal prices have bottomed. Dwindling Chinese and Indian stocks, coupled with production cuts, could be offset with surplus U.S. stocks and the diversion of unloved PCI (pulverised coal injection) metallurgical coal into the thermal market. Prices have been affected by three interrelated factors; 1) shrinking demand for grid power, 2) weak global environment, 3) lower oil prices; coal often trades off the energy complex. It is important to keep an eye on the energy complex as higher oil prices and a clear bottoming in the coal indices signal an opportune time to establish strategic long positions in coal...
...The economic turndown appears to be been fully priced into the share prices of coal producers. Stocks seem to be discounting long-term coal prices far below current levels and make coal stocks in general ripe for accumulation. Triggers to watch for potentially higher share prices:
| | - Stabilizing GDP.
- Falling coal and steel inventories.
- Improved global steel capacity utilization.
- Rise in the energy complex...
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2) Case Study: Cloudbreak Resources Ltd. (TSX-V: CDB) (Frankfurt: C6K) (US Listing: CUDBF) - Exceptional Risk-Reward Scenario Presented as as Drilling Permits Approved on One of the Strongest Land Packages for Coal Exploration in Saskatchewan.
Synopsis: Risk-reward characteristics are highly advantageous for investors establishing a long position in Cloudbreak Resources Ltd. Cloudbreak Resources has one of strongest land packages for coal exploration in Saskatchewan and is ideally positioned in the coal trend with superior technical characteristics conducive to finding a deltic-sequence for quality thermal coal similar in size or even larger than what Goldsource Mines found on the same trend. Permits to drill up to 40 coal exploration test holes at their "Dowd Lake Coal Property" near the town of La Ronge, in Central Saskatchewan have been approved and granted by the Saskatchewan Ministry of Environment. The "Dowd Lake Coal Property" is comprised of a total of 96 Coal Prospecting Permits covering approximately 182,000 acres of prospective coal bearing lithologies. Each of the planned diamond drill holes targets the near surface expression of the Cretaceous Mannville Formation which is the target stratigraphy of Goldsource's "Durango Trend". CDB.V drill program set for this Q3 2009 on their 100% owned Dowd Lake Coal Property will begin by effectively twinning a historic 145m variable coal seam intercept that is indicated in government reports as Sub Bituminous C coal, the drill program will then build off analysis of the first hole. CDB.V appears undervalued with only ~84M shares outstanding and trading under CDN$0.10.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL.
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