This week an IPO was announced not only for a coal company but for a pure play hard coking coal company, which means times are definitely becoming more interesting.
It will not be too long before taxi and Uber drivers in Mackay and Newcastle will be giving you coal mining company stock tips, like they do for gold stocks in Kalgoorlie.
This could be the start of the next surge of coal mining investment.
We have recently seen a number of small players make strategic acquisitions in quality Queensland operations that have been hived off by the major players.
Terracom, Realm Resources and Pembroke Resources are good examples of smaller players that got their hands on good operations and are making them pay.
This week Bounty Mining announced it would be raising $18 million and its main asset is the Cook Colliery in Queensland.
Bounty intends to expand operations at the Cook Colliery to four underground mining areas, producing 2.2 million run-of-mine tonnes per annum using bord and pillar mining methods.
The company acquired the assets of Caledon Coal and Blackwater Coal, including the established Cook Colliery and the Minyango Coking Coal project back in November.
Cook had a chequered past under Caledon Coal to say the least.
Caledon was placed into voluntary administration in May last year following a water inundation event that fully submerged the Cook Colliery longwall.
The longwall was promptly dewatered but the mine was placed under care and maintenance shortly after and PPB Advisory were appointed as administrators.
PPB sought proposals for a refinancing or acquisition of the company and its assets, and Bounty was the successful bidder to acquire the assets.
Cook Colliery produces a high quality hard coking coal product that has been accepted in the main export markets of China and Japan.
Bounty has already secured a strategic investment in the IPO from an investment vehicle associated with Xcoal Energy and Resources, a US-headquartered, privately-owned global coal marketing and logistics company.
Xcoal will emerge with approximately 10% of the company on listing.
Bounty and Xcoal previously agreed to a coal sale agreement under which Xcoal would buy 275,000t of Cook colliery mid-volatile hard coking coal, provided the coal met certain specifications.
You know there is change in the air when a company can get a longwall mine that was literally underwater, organise an IPO and secure a major investor and offtake customer all in 12 months. Let the good times roll.