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Coal Developer Aspire Can Burn Brightly -- Market Talk

7 Jan 2018 11:14 pm

2314 GMT [Dow Jones] Coal miner Aspire Mining has been a slow burn for investors but that could be about to change. Patersons thinks Aspire's current A$30 million market capitalization undercooks the value of its 90%-owned Nuurstei coking coal project in Mongolia. "Based on peer comparatives, we see the potential for a more than A$100 million market capitalization given that the project has the potential to generate US$23-28 million per annum in cash flow (post-tax current pricing) within the next 15-18 months over a circa 10-year period," says Patersons, which starts Aspire at speculative buy. It also likes Aspire's Ovoot coking coal deposit, if China's One Belt One Road policy leads to the construction of a railway that can enable the commodity to be shipped out. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 07, 2018 18:14 ET (23:14 GMT)

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