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CanAm Coal Corp. (COE:CA)

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Web site: 
http://www.canamcoal.com

CanAm Coal Corp. ("CanAm" or the "Company") is a coal producing and development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies.



CanAm's portfolio of assets is well diversified and is comprised of both producing and development properties. Since November 2009, the Company has embarked on a strategy to become an emerging coal producer and in the last year the Company has successfully completed two acquisitions: gaining control of RAC Mining LLC, a predominantly metallurgical coal producer, and acquiring a 50% ownership stake in Birmingham Coal & Coke Inc., a predominantly thermal coal producer. As a result, CanAm's assets now comprise an ownership stake in:



- 4 producing coal mines

- 1 development mine

- Permits and leases covering approximately 5,000 acres of land

- Workforce of 110+ employees



Our development assets include the exclusive rights to a proprietary Coal to Liquids technology which converts coal into liquid fuels, the Buick Coal Property which holds significant coal resources; 188 million tons of indicated and 103 million tons of inferred coal resources in Colorado, USA.



The Company is headquartered in Calgary, Alberta and has operations and assets in the states of Alabama and Colorado.
Coal Facts

  • US Energy Security is Coal with 94% of America’s known energy reserves versus 4% for natural gas and 2% for crude oil
  • Coal provides almost 50% of America’s daily electricity usage
  • Strong Global Coal Price Outlook is driven by increasing Asian demand



CanAm Facts

  • Good cash position - $3M+ cash and restricted cash
  • Accelerated organic growth - Double production in 2012 to 500,000 tons
  • Clean coal gets premium pricing - Most CanAm production has low sulfur, arsenic and mercury which aligns with new EPA requirements
  • Downside protection - 50% of thermal coal production hedged until 2015
  • Seaborne port access - Asia and India driving higher coal prices
  • Low cost operations - Surface mining and non-unionized labour
  • Growth strategy - Exploring future low-cost high-yield mining operations
  • Proven management - Track record with decades of experience

Investment Opportunity

  • Undervalued - CanAm is undervalued to Coal peer group
  • Strong EBITDA growth - Est. EBITDA of $13M for 2012 – a 260% increase over 2011
  • Coal price appreciation - Recent new domestic contracts signed by CanAm suggest prices for existing coal production could increase and export sales could provide further upside potential
  • Contracted volumes - 75% and 63% of 2012/2013 production is contracted for and provides downside protection
  • Accretive acquisition strategy - Acquiring low-cost coal operators and existing option for remaining 50% buy-out of Birmingham Coal & Coke
  • Multiple expansion - With higher production levels, valuation multiples should expand to equivalent producers at 4x EBITDA

For any investor relations questions, please contact:



Tim Bergen, CEO CanAm Coal Corp.

Tel: 403-262-3797 or email tbergen@canamcoal.com



Scott Koyich, President Brisco Capital Partners Corp.

Tel: 403-262-9888 or email scott@briscocapital.com

Links: 
Fact Sheet
Coal Industry
COE:CA
Category: 
Energy

Market Snapshot

 

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