Reserves of coal near Longtown spark share tip
Last updated at 08:01, Friday, 01 February 2013
An Australian stockbroker is tipping shares on the strength of coal reserves near Longtown.
Patersons, the country’s largest independent stockbroker, is keen on shares in the Melbourne company New Age Exploration, which has a licence to explore the Lochinvar coalfield straddling the Scottish border.
Patersons describes the coal field as a “very attractive” project.
It is recommending shares in New Age as a speculative buy with growth potential.
Its research note says: “We are initiating coverage on New Age Exploration (NAE), a promising coking-coal exploration company with a very attractive project in the UK called Lochinvar and a strong coal-mining team.”
The coalfield contains coking coal, which is used to produce steel.
It was first discovered in the 1950s by the National Coal Board but never fully explored.
NAE bought a licence to work on just under 26 square miles of the field in 2012 for £12,500.
The area stretches as far north as Evertown, near Canonbie, and as far south as Longtown.
Patersons described this as: “The best £12,500 one could ever spend.”
The stockbrokers have predicted that NAE will be able to make announcements to Australia’s Joint Ore Reserves Committee, which is required under the country’s laws, about its exploration in Lochinvar in the next six months.
The report said the project was good for NAE because of Lochinvar’s closeness to ports such as Workington, and Immingham in Lincolnshire.
It also has road and rail links to the UK’s main steel works, which currently import much of their coking coal.
The exact volume of coal that could be mined in Lochinvar is not yet clear.
The coal seam is at its shallowest in the north and west of the field and any mining operation would be likely to start from this point.
It would be extracted by miners working in a series of tunnels.
First published at 11:41, Wednesday, 30 January 2013
Published by http://www.cumberlandnews.co.uk
- Double jobs boost in Carlisle
- Sellafield chimney removal will take years
- FSB outlines opposition to parking fees
- Cumbria’s £3bn grid connection: everything you need to know
- Training experts offer tips on learning for #cumbriahour
- Lake District whisky goes on sale at Harvey Nicks
- £1million ploughed into Cumbrian travel project
- Cumbria's top tweeters give their social media tips
- Blencathra has been sold
- £27m Government deal to create 2,000 jobs
- Warning over 'Hollywood-style' cyber attack
BBC News business headlines
- Good week for supplier base
- Good to see familiar faces return to ringside
- Get ideas off drawing board
- Dear Jenny
- Engineering boss relishes taking on fresh challenges
- Maryport firm SIS Pitches completes job in Copenhagen
- Website gives South Cumbria firms chance to take on giants
- Cumbrian marmalades to go on sale at Fortnum & Mason
- Day out at Maryport for Iggesund golfers
- Frank built 42-year career with West Cumbrian construction company
- Child porn images were downloaded by mistake, man tells court
- Ulverston ‘completely gridlocked’, councillor tells meeting (4 comments)
- Leisure centre go-ahead for Workington (4 comments)
- Future’s bright for Ulverston hospice as £1,000 gift goes to decorating
- Police name dead cyclist found by A592 in south Cumbria
- Country traditions thrill thousands in Coniston
- Top poets launch three new collections
- Cartmel Races - Betfair Barbecue Day 2014
- Cartmel Races - Totepool Cumbria Crystal Hurdle Day 2014
- Sun set to shine on festival of Kings