Commodities look to have stabilised since 2014 and appear to be edging back into investor attention.
Just look at the spot price for premium coking coal, which has rallied by over 60% since mid-February and you get a sense of the upward trajectory of this commodity in particular.
This rise is good news for Pacific American Coal (ASX:PAK), which is looking to progress its flagship Elko Project in Canada, known for its high quality coking coal seams.
Recently PAK commissioned a detailed study into the commercial viability of Elko including a 3D model of what its mine site and processing infrastructure could look like, signalling its long-term intent for its Canadian project.
PAK is not a one trick pony.
On top of its 257Mt coal resource confirmed to internationally recognised JORC (2012) standards, it is also a 40% stakeholder in Imagine IM — the world’s first graphene commercialisation company that will be manufacturing graphene-based products.
Combined with its coking coal activities, PAK is hoping its holding in Imagine IM can blend neatly blended with its downstream graphene revenues to create a vertically integrated, paddock-to-plate carbon company.
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With coking coal prices having hit $160 per tonne, PAK is aiming to punch above it’s current A$16M market cap and put itself into a strong early position to advance Project into commercialising high-grade coking coal for steelmaking.
PAK Galvanises Coal Portfolio for Cyclical Resurgence
Sep 19, 2016
The commodities swansong is back on the hymn sheet. If we look at the staple commodities that have propelled countries like Australia to the top of the commodity-exporter stakes (coal, iron ore, zinc, gold) — they have all stabilised their swan dives since 2014 and are now creeping back to the forefront of investor attention.