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The Ubika Research Junior Resource stock watchlist
| Prophecy Resource Corp. (Symbol: V.PCY) |
| Company Name: |
Prophecy Resource Corp. |
| HQ Location: |
Vancouver, BC |
| Company Website: |
www.prophecyresource.com |
| Shares Outstanding |
102.3 Million |
| Closing Price (July 05, 2010) |
$0.50 |
| Market Cap: |
$51.5 Million |
| Average Daily Volume |
249,000 |
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The Ubika Research Resource Stock Watchlist is a feature that profiles junior mining stocks. Visitors will discover high potential Canadian mining stocks, the best gold stocks, small cap energy stocks and junior gold companies through this very popular feature.
Share Highlight / 1-Year Stock Chart
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Business Overview
Prophecy Resource Corp. is a Canadian company with a diversified holding of mineral resource assets. Its flagship project is Ulaan Ovoo Coal Project in Mongolia, which is expected to be in production this year. It controls several other projects including the Lynn Lake Nickel-Copper project in Manitoba, the Titan vanadium-titanium-iron project between Angus and Flett Townships in Ontario, Canada, and the Okeover copper molybdenum project, which is 20 kilometers north of Powell River on the B.C. coast.
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What is interesting?
- Prophecy Resources Corp. is an ambitious junior resource company that has grown in market value rapidly through strategic acquisitions and joint ventures. The company aims to grow at a fast rate and is pursuing a growth plan based on both organic and growth through mergers and acquisition.
- The current focus of the company is its flagship near production project, Ulaan Ovoo Coal project, which it owns 100%. The company expects to produce 2 million tonnes of coal in 2011 and 4 million plus tonnes of coal in year 2012 at this project.
- Based on the historical drilling, the Ulaan Ovoo Coal Project contains NI 43-101 compliant resource estimate of 209 million tonnes of measured and indicated economically recoverable high quality, high volatile bituminous thermal coal with a 2:1 strip ratio, with first 50 million tonnes requiring no washing and hence imply lower usage cost.
- The Ulaan-Ovoo coal deposit is strategically located 10 km from the Russian border and 120 km from both Mongolian and Russian rail links. This gives Prophecy a significant advantage as access to easy transportation and the availability of ready markets are the key factors in determining the viability of a coal project.
- The demand outlook for coal remains strong as energy needs of developing countries are still primarily met through coal based thermal power plants.
- The company has been moving swiftly to put in place necessary partnerships and vendor relationships to allow production this year and it expects to start generating cash flow from this project during 2010.
- Prophecy owns several other high potential projects with NI 43-101 compliant resource estimates, which can be developed in medium to long term.
- The company has a strong board of director and advisory team that lends credibility to the ambitious targets outlined by the company.
- The company is well funded and has sufficient capital to advance the property of focus, Ulaan Ovoo Coal Project in the short term.
Risks
Prophecy Resources Corp. is an early stage exploration company. The commercialization risks associated with mineral exploration and development are high and its prospects for discovering economically viable resources are uncertain. Commodity prices can fluctuate and a decline in prices of commodities like coal and nickel could impact the share price of the company adversely. Early stage exploration companies typically needs significant amount of capital and although well financed, Prophecy Resources may still require additional financing. This could result in shareholders’ dilution.
Prophecy Resource Corp. News
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