I couldn't help but notice the volumes traded on Mozambi Coal (MOZ) the last few days. The ASX noticed also and issued a price query accordingly on Tuesday (05/04) quoting the stock price rise from $0.25 on 31/03 to $0.33 on 05/04. The company advised they had no explanation for the share price rise.
Mozambit Coal is a stock that I have followed for some time. For those that follow my blog you will have noticed that I do like to investigate shell companies and this was one of them. Back in the day the company used to hire out dump trucks and had a syringe-type technology (from memory), a strange combination, under the name RTL Corporation (RTL).
This is all before the company acquired coal basin deposits in Mozambique. By way of acquiring Dugal Pty Ltd the company has acquired two licences including one with ground of 172 square km adjacent to the Riversdale Mining (RIV) block. Mozambi Coal was suspended for a number of months whilst it complied with ASX compliance rules that apply when a company has a major change in activities. Before going off the boards the stock was trading at $0.022.
One of the key points here is that whilst the company was complying with listing rules Rio Tinto (RIO) launched a takeover bid for Riversdale Mining (RIV), proving and increasing the value of other tenements in the area. MOZ shares were reconstructed and when they commenced trading again at the start of March they were at $0.35 or $0.035 equivalent. That's quite a success for those that purchased before the stock before it was suspended. Since then the shares weakened which would probably be as a result of some old stale shareholders finally moving on and the whole Japan earthquake crisis.
Things are now definitely starting to hot up. I think that word is getting around about the potential of this stock. The recent share price gain could also be explained by the fact that TSX listed company Polo Resources has become a substantial shareholder (11%). The company advertises itself as "a natural resources investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects." Polo Resources has made excellent gains in other investments such as Extract Resources (EXT) and Caledon Resources (CCD).
MOZ closed at $0.355 today after hitting a high of $0.40.
Buy on dips.
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