Geo Energy

Geo Energy - No Co. / industry specific news avilable to explain its sharp drop in price today. Infact industry news has been mildy supportive, with Peabody (world's largest private sector coal miner) tipping a recovery in thermal coal for this yr, after the grp reported a smaller then expected qtrly loss last wk. Apart from that, latest news on the co. was last wk where the co entered into a conditional sales & purchase agreement for its 5th mine concession in 2013. The new concession, spanning a total concession area of 4,600 hectares, is estimated to contain higher calorific value coal of 7,200 kcal/kg (GAR) and semi-coking coal, expanding the Group’s range of production. On the previous four concessions which the group entered on 25 Feb: four mining concessions in Kutai Barat Regency, East Kalimantan. Each of the four options to purchase agreements, when converted, will result in Geo holding an aggregate of 93% interests in the 4 mining concessions in East Kalimantan totaling 21,377 ha. These 4 target companies have not commenced coal production and are currently loss-making. All the five potential mine concessions are situated in areas neighbouring the Group’s current BEK mine in East Kalimantan and will allow the Group to synergise its upcoming operations to cater to its operations in the aforementioned mining concessions.