Investors may be turning their interests towards more traditional forms of energy production, such as coal: report
Investors may be turning their interests towards more traditional forms of energy production, such as coal, as uranium stocks stumble on events in Japan.
Matthew Zylstra, analyst with Northern Securities, reportedly highlights venture company Compliance Energy Corp. (CEC.V), which saw its stock rise on Monday after Prophecy Resource Corp. (PCY.V) picked up $1.75-million worth of Compliance shares (about an 8% interest) through a private placement.
"Prophecy may be looking at Compliance as a way to get into the metallurgical coal market (Compliance has semi-soft coking coal and high-grade thermal coal resources) to complement its substantial 100%-owned open-pittable thermal coal resource in Mongolia," he said, according to the Financial Post.
Compliance's twin coal projects in the Comox Coal Basin in British Columbia have been developed with major partners Itochu of Japan and LG International of South Korea, suggesting solid backing for the company, the FP says.
As well, Compliance also holds a $14-million position in Copper Mountain Mining Corp., which operates in British Columbia as well, it adds.