In line with our bullish outlook on the commodities sector, we were fortunate enough to have a large position in Grand Cache Coal, which just announced that it has agreed to be acquired for $10 per share in cash.  The following is one of the press comments on the deal (from Bloomberg News) with a quote from our firm as well:

China’s Winsway Coking Coal and Japan’s Marubeni Corp agreed to acquire Canadian metallurgical-coal producer Grande Cache Coal for about C$1 billion.  Winsway and Marubeni will pay C$10 a share in cash, 112 percent more than its 20-day volume-weighted average trading price, the Calgary-based mining company said yesterday in a statement.  Surging demand from steel producers in China and flood- related supply disruptions in Queensland, Australia, have driven prices for metallurgical coal to record highs this year. Grande Cache, which mines in west-central Alberta, forecast sales of 2.2 million to 2.4 million tons in the year ended March 2012.  “A lot of the larger companies are looking to add coal exposure,” John Zechner, chairman at J. Zechner Associates Inc. in Toronto, which manages about C$2.5 billion in assets and owns Grande Cache shares, said yesterday in a telephone interview. “I think that companies are realizing the long-term value of the resources in the ground, as opposed to the market, where these stocks have been under a lot of pressure over the last couple of months.”   Grande Cache climbed 68 percent to close at C$9.87 in Toronto yesterday, after declining 44 percent this year through Oct. 28. 

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