By Mark Gordon, Independent Investment Research
Subsequent to our September 2017 initiation, Allegiance Coal (“Allegiance” or “the Company”) has made progress on key fronts on its now 100% owned Telkwa Coal Project (“Telkwa” or “the Project”, located just 375km by rail from the under-utilised Ridley Island Coal Terminal (“RICT”) in northwestern British Columbia, Canada.
To reiterate, Telkwa, with a targeted 2020 commencement of production, has Saleable Reserves of 42.5Mt of metallurgical coal, has the potential to produce at FOB costs in the lower 5% of the global sea-borne trade with resultant robust returns from the Project. This is by virtue of the low strip ratio and access to infrastructure; the Project has ready access to power and transport, including being just 24km from the Canadian National Rail (“CNR”), which links directly to RICT.
