Beacon Hill Resources is very popular at the moment on other BBs yet here there seems to be nothing - so I thought I'd put together the stuff I've gather from the Internets and see if anyone here is investing in BHR - I'm not but I might at some time in the future when the fuss has died down

Beacon Hill Resources

AT THE other end of the spectrum is Beacon Hill Resources, a company that can trace its existence back less than ten years. Beacon Hill, quoted on the Alternative Investment Market, owns the only coal-producing mine in the Tete province of Mozambique.

This may not sound like much, but Tete is widely considered to be the largest undeveloped coal region in the world, so much so that two mining monoliths, Vale of Brazil and Riversdale of Australia, are firmly positioned in the area.

Beacon Hill, sandwiched between these giants, may be a minnow but it is already mining coal while they are some years away from production.

Chairman Justin Lewis is based in Melbourne following his marriage to an Australian, but spent most of his career in Britain and now travels frequently to Mozambique.

He acquired the Minas Moatize mine in Tete last May, when it was producing 2,000 tons of coal a month. This has already increased to 8,000 tons a month and is expected to rise to 20,000 tons a month this year and 200,000 by 2012.

The company is moving from more expensive and challenging underground mining to open-pit, which is easier, cheaper and offers a far safer and more agreeable environment for the miners.

Coal has soared in value over the past decade as a result of rising demand. Beacon Hill can obtain $100 a ton (65) for its coal and the cost of digging it out of the ground is about $50 a ton.

So, if prices stay static, the group should deliver turnover of $240m in a couple of years and profits of $120m.

Midas verdict: Beacon Hill is in the high-risk investment category. But for investors in search of adventure, this could be an exciting prospect. The shares are 15.25p. Buy.

It was also tipped by Midas in the Daily Mail as a share for 2011

Newspaper Share Tips

yes i liked midas comment 'Beacon Hill Resources, on the Alternative Investment Market, owns the only coal-producing mine in the Tete province of Mozambique - widely considered to be the largest undeveloped coal region in the world,
Midas verdict: Beacon Hill is high-risk - but could be an exciting prospect.'

i also like (before recent coal price increase) can sell $100 ton for a cost of $50 ton to deliver it from out of the ground!Already producing in excess of 8000 tons per month - will increase this year to at least 20000 tons per month then 200000 tons per month in 2012 - i look fwd to the divis - kerrrchinnnng! gl

interesting list of major shareholders..

Major Shareholders
Notifier** Holding Value*
Renaissance Partners Investments Limited 121,564,103 25,224,551
Consolidated Minerals Pte Limited 120,600,832 25,024,673
Asia Carbon Pacific Pty Limited 53,579,805 11,117,810
Dhunn Carr Industries Limited 39,642,743 8,225,869
Smit Superannuation Pty Limited 33,508,321 6,952,977
ATT Resources Pty Limited 14,833,015 3,077,851
Dzeladia Ceman 7,237,797 1,501,843
RAB Capital Plc 2,337,800 485,094

KEEP an EYE

spread 16.75 / 17p

Has been falling from a high of 25p so is on a retracement level of bouncing back, as today buys are signaling that point.
A very good level 2 also of 5 v 1

Last Month RNS "Beacon Hill Resources , the AIM listed resource company, is pleased to announce that the directors have approved the next stage of a work programme for its Arthur River Magnesite project in north-west Tasmania ('the Project'). The programme, which will include the first drilling to be undertaken by the Group on the asset, will span the next six months and will advance development of the Project ahead of the completion of a Feasibility Study in 2012".

the "KEEP an EYE" yesterday, was at the right time and right price to buy, when MMs were offering almost at middle price 16.89p yesterday and event this morning.

A lot has change since and the desire movement up has started with volume

spread 17.50 - 18p
improving all the time now level 2 of 3 v 4 from 2 v 6 a bit earlier

still the same spread 17.50 - 18p
but improving all the time level 6 v 2 earlier 3 v 4

Is there some tree-shaking going on here? Is there a general retreatment of coal based shares going on? At least Coal of Africa is one following a similar downward trend.

Broker note out earlier in month......

Beacon Hill Resources PLC

FORECASTS 2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Northland Capital Partners Ltd
15-02-11 BUY -2.06 -0.68 -0.74 -0.08

Old King Coal


An exclusive report from James Faulkner of WatsHot.com

Expert tipster James Faulkner, whose recent comment on Range Resources caused such an increase in volumes that the company was forced to issue a statement on the matter, provides two new tips a month and regular updates on specialist small caps site WatsHot.com.

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In this report, first published last Wednesday on WatsHot.com, the expert tipster takes a detailed look at coal mining and the stocks that could help you take advantage of increasing demand for the fuel. To read more insightful analysis like this from James in his daily column and get two brand new tips each month, join WatsHot.com now.

It may be dirty, but coal is set to return to the spotlight in 2011 as demand for cheap sources of energy heats up in the developing world. Latent trends are currently being exacerbated by the recent floods in Australia which have sent coal prices to a two-year high on the back of supply disruption in the world's largest exporter of coal. The situation is said to be worse than the 2008 flooding when the coking price moved above $300 per tonne for the first time, as the number of mines and transportation infrastructure affected is much greater. For a point of reference, the mines affected in 2008 took at least 6 months to recover from the interruption and return to full capacity. The latest rain comes after the country saw its wettest September/November period on record. In the past few months coal miners Rio Tinto, Xstrata, Vale, MacArthur Coal and Aquila Resources have all declared force majeure in the coal-rich Bowen Basin, allowing them to miss delivery commitments. In the week to 24th December, coal prices at the Richards Bay Coal Terminal in Queensland jumped 14% to an average $128.10 per tonne.

The fact that Australia accounts for almost two-thirds of the global coking coal trade points to continued price spikes in the coming months. Coking coal is a vital ingredient in steel-making, and unlike thermal coal it has no obvious replacement. With demand for coking coal remaining very strong indeed in India and China, and a move to a quarterly pricing system has facilitated higher price levels since it was implemented. The Steel Authority recently agreed to pay $225 per tonne to suppliers, a level that is 74% higher than the price it paid during the year ended 31st March 2010. Broker UBS forecasts that prices will hit $250 a tonne in the second quarter of 2011.

The outlook for thermal coal the form of coal used in power stations also looks bright. A report from Deutsche Bank said prices for thermal coal are likely to be 17% higher than expected because of global shortages over the next two years. The bank predicts that thermal coal prices will reach $118 per tonne next year and $140 in 2012. Here, too, the picture is one of rising demand exacerbated by constrained supply in key producing areas.

Rising prices have proved a catalyst for M&A activity in the sector. The most notable activity of late includes Rio Tinto's 2.2 billion bid for Riversdale Mining's Mozambique operations; Vallar's $3 billion deal to make a mining company from the coal assets of the Bakrie family in Indonesia; and Walter Energy's $3.3 billion bid for Western Coal earlier this year (on which WatsHot subscribers bagged a 180% profit). 2010 saw 27 coal deals, compared to 25 in 2009, with single mega-asset transactions accounting for 15 deals and up 50% on 2009 levels, according to Wood Mackenzie Group. This trend is likely to continue in 2011. Here are a few ideas of how to play it.

Churchill Mining (CHL)

Churchill has a potentially world-class project on its hands in the East Kutai project in Indonesia. Even in the project's current embryonic state, broker Astaire believes the company could achieve a sale value in excess of $300 million significantly greater than the firm's current market capitalisation of 114 million. Whatever the eventual outcome, payback would be relatively swift. At 20Mtpa (million tonnes per annum) and a conservative cash operating margin of $20 per tonne, the project would generate free cashflow of $400 million per annum for at least 30 years. At a more realistic margin of $30 per tonne (based on $45/t revenue and $15/t costs), this increases to $600 million per annum. Recent studies have suggested that the production rate could be as high as 35 Mtpa. Getting the project into production will require deep pockets, with direct capital expenditure estimated at $1.2 billion. However, the company states that it looks forward to "moving swiftly into the next stage in the ongoing strategic process and bringing this large scale Project into development", and discussions with third parties are ongoing.

Risk Warning: The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. Not all comments on WatsHot.com cause an increase in trading volumes. UK-Analyst.com is owned by t1ps.com Ltd which is authorised and regulated by the Financial Services Authority and can be contacted at 3rd Floor, 3 London Wall Buildings, London EC2M 5SY.

Beacon Hill Resources (BHR)

Rio Tinto's $16 per share offer for Mozambique coal developer Riversdale is good news for neighbouring Beacon Hill Resources. The Moatize basin in Mozambique is one of the last undeveloped fields containing potential to produce hard coking coal and Rio's move has brought it into the spotlight. Beacon Hill Resources already produces coal on a small scale from the Minas Moatize mine, and has fully funded plans to lift production in 2012 to over 2 Mtpa (million tonnes per annum), 30% of which is expected to be coking coal for the export market. The firm enjoys first mover advantage in the basin and the current infrastructure is capable of handling the planned ramp-up in production. Broker Collins Stewart expects the shares to be a top performer in 2011. The broker values Minas Moatize at 160 million, of which 68% could be attributable to Beacon Hill, implying a pre-funding NPV (net present value) per share of 55p.

Ncondezi Coal (NCCL)

Also operating in Mozambique is Ncondezi Coal, which is located in a separate basin 26km to the north of Moatize where the presence of coking coal has yet to be proved. The shares rose sharply in December in anticipation of a significant upgrade to the existing 1.8 billion tonne JORC Resource following a recently completed 76-hole drilling programme. Upon completion, the company announced that coal had been intersected on all previously undrilled blocks, and comprehensive results are due to be announced some time in the first quarter of 2011. If coking coal is present in significant quantities then the shares should fly; if not, they will probably fall back. This is therefore an investment for risk tolerant investors only.

Coal of Africa (CZA)

South Africa-focused Coal of Africa recently entered into an agreement to pay a total consideration of $75 million for the 1 billion tonne Chapudi Coal Project, which is contiguous with the firm's Makhado Coking Coal Project. Acquired from Rio Tinto Minerals Development Limited and Kwezi Mining Limited, the Chapudi Coal Project provides the company with an additional estimated 1.04 billion tonne JORC resource (of which 90Mt is Measured, 220Mt Indicated and 730Mt Inferred), which could potentially transform its existing 947Mt Makahdo Project into a major coal mining complex situated in the Soutpansberg Basin. Near-term upside could be provided from the results from the Makhado Project definitive feasibility study due in early 2011, or the results of the bulk sample pit being developed to support the off-take agreement with Arcelor Mittal. The shares traded as high as 300p back in 2008, but the recession came along as well as several operating setbacks, pushing the shares as low as 50p. They currently trade at 110p, and broker Evolution has a risk-adjusted 205p target

Some movement up with volume today, a seller is still on the market but the chart is looking much better as the bottom could be a thing of the past.

It seems yesterday ....
Beacon Hill Resources (BHR) initiated coverage with buy by Collins Stewart- price target 38p

the larger trades are now appearing and WINS has moved into the bid 4 v 2 on level 2

Buys at 11.175p are a thing of the past, the latest are at 11.22p.
something is afoot with volume of 3M

now going places 11.50 / 12p +1.25p

money am charts look again on all sorts, at least are delayed OK, are only showing 11.375p

FT.com

By Neil Hume and Bryce Elder
Published: May 24 2011 20:39

Beacon Hill Resources continued to find support from Mondays bullish note from Collins Stewart. The broker placed a 38p target price on the company, which owns the and operates only producing coal mine in Mozambique. We expect a re-rating as trial exports start and the production ramp up grows revenue above $200m pa from 2013, the broker said in its note. Beacon Hill rose 11.9 per cent to 11p.

http://www.ft.com/cms/s/0/8728ae60-8615-11e0-be9b-00144feabdc0.html#ixzz1NIv6cHBA

Yesterday's Collins Stewart broker note ..............

Tete-a-tete

Expanding coking coal production in Mozambique
Initiating with c.250% upside to our Target Price

We initiate with a Buy recommendation on Beacon Hill Resources with c.250% upside to our NPV-based 38p target price. Our $608m NPV comprises mainly the Minas Moatize coal mine on our conservative price assumptions, c.50% below spot. We expect a re-rating as trial exports start and the production ramp up grows revenue above $200m pa from 2013.

Mozambique the right address to grow coking coal production

The company provides exposure to a key emerging coking coal region, which has already captured the attention of the majors. The Tete District of Mozambique offers potential for highly productive open pit mining operations to be brought into operation to produce coking coal at a time when supply constraints and relative scarcity have driven June contract prices to $330/t.

Near term expansion plans to drive re-rating

Beacon Hill Resources plans to rapidly expand production in 2012, mining 4Mt to produce 2.36Mt of saleable coal from 2013 onwards, of which 38% of saleable production is expected to be coking coal. The mine has the funds for the expansion, as a contractor will supply the major capital plant and equipment, to be repaid through the contract operating cost.

Demand for coking coal remains tight

Sustained demand growth from India and China is set to keep the long term coking coal price at elevated levels as producers struggle to expand. We see coking coal prices holding $200/t over the long term, with periods of acute tightness in supply the potential for further peaks above $300/t, and maintaining coking coals 200%+ premium over thermal coal. The ability to produce coking coal is the primary value driver for the business.

Unlocking the infrastructure is the key

Securing access on to the rail line will be a major tipping point as it will clear one of the regions chief challenges. It is possible that the company may have to contend with road haulage and/or capacity limitations in the short term, particularly to achieve the first trial shipment by mid 2011. However we have stress tested the valuation for this scenario which still implies c.80% upside to our risked valuation from the current share price.

sp is real low considering - however many in the same boat as bhr

Finally moving ahead again this afternoon 12.25 / 12.50p +0.625p

hmmm indeed - heading back to placing sp

see sey.p target 38p here - still way undervalued when it achieves that imo