New Colombia Resources Inc fka NEWC

[microcaps1]

From 9-27 PR: "The Peace Treaty signed yesterday in Cartagena between Colombia and the FARC will make generating interest for investment in Colombia much easier.'' This includes regulated med mj- cf to prior illegal THC (psychogenic) focused mj

Compared to other med mj stocks NEWC is actually a mining company with many emerging or upcoming revenue streams representing unrealized value,including:

1) Most know about NEWC's participation in med mj via its JV SANNABIS SUB,including a product high in CBD but no THC for export to USA and a 29 page catalog being translated to English

2) and its new JV sub for application for an ORPHAN DRUG- possibly for epilepsy,especially for children,as that has been mentioned in NEWC releases a couple times.

3) BLUE GEM coal-previous PR said would be obtaining coal equipment from KY-TN border at fire sale prices
From 9-27 PR:
New Colombia Resources' Blue Gem coal is only found on the KY-TN border and central Colombia and is used to produce specialty metals such as Silicone to make solar panels, electric car batteries, and many more next generation products. New Colombia Resources has concession contracts and applications totaling 5000 HA [ca 12250 acres] of high quality metallurgical coal that will always be needed to produce steel and other specialty metallurgy products. Blue Gem coal miners in Kentucky are shutting down operations due to over-regulation creating a supply void the Company intends to fill."

4) METALLURGICAL coal to coke steel furnaces- "The Company's coal reserves are estimated to be 70% metallurgical and 30% thermal". Coking coal commands higher prices than thermal (space heating).
New Colombia Resources expects to partner with a major corporation to begin mining high quality metallurgical coal, however, the cash flow from the gravel operations will allow them to begin coal mining operations on their own.

The spot price of coking coal has skyrocketed this year from $70/tonne to over $ 200/tonne because of China's new policy to decrease production and other factors. Although the company director, Erasmo Almanza, entered into a US$ 200 Million LOI with an Asian firm, New Colombia Resources has been meeting with other major Asian conglomerates and soliciting steel mills to get the best deal possible to begin a sizable metallurgical coal mining operation. Original plans are for output of 30,000 tonne/month, at today's spot price that would produce monthly revenue of over $ 6,000,000.

Goldman Sachs issued a report last week stating their projection that coking coal prices will remain high. http://www.bloomberg.com/news/articles/2016-09-23/goldman-says-higher-coking-coal-prices-are-here-to-stay

OPTI has repeatedly confirmed the progress of the permits with the govt agency

5) THERMAL coal- see the 10-19 PR below :
New Colombia Resources in Negotiations to Build a 300 MW Thermal Coal Power Plant Near their Coal Property in Colombia in Association with a Foreign Entity that Secured a US$ 200 Million L.O.I. from a Major Construction Company in China

6) in addition to the original coal concession with an estimated 15-17 million tonnes of reserves they have "another pending ACQUISITION for 390 ha and a solicitation contract for 184 ha metallurgical coal" concession- the additional 574 hectares totalling ca 2.22 square miles-ca 1420 acres.

7)NEWC was averaging ca 4c PPS many years ago before the original coal work plan was even approved in Dec 2013.
Final permits are close, greatly increasing value, as permits are a major factor in mining company value.

8) Since then AGGREGATE has been added to work plan and the appropriate Govt land use agency is formally reviewing NEWC's professional scientific modification of its aggregate plan to conform to govt request for modification from 1 to 2 pits.
'The cash flow from the gravel operations will allow them to begin coal mining operations on their own." on their original metallurgical concession.
From the 9-27 PR: Plans are to begin immediately crushing rocks to generate revenue [once permit expected shortly is approved]. In 2014 the Company purchased a rock crushing plant with a 1000 m3/day capacity that will begin to generate revenue immediately. To see a financial model of the gravel operation, click here https://drive.google.com/open?id=0BxSKP5j2FlseOFE5TVdReGRCUUE

9) CONVERTIBLE DEBT ELIMINATION: pps was strangled to a ridiculous low due to the typical convertible notes required to enable these companies to turn the corner until revenue begins. NEWC forecast a pending 8k to announce all debt that can be [at least currently]converted has been eliminated: "Drafting an SEC Form 8K to address the elimination of debt that was recently being converted into free trading shares".

10) UPDATED FINANCIALS
Pps also suffered due to a long delay in financial reporting due to financial exigencies. Toxic debt resulting in the maniacal conversion by a holder who cared nothing about operations was incurred to allow NEWC to pay auditors etc to update SEC reporting financials,which are expected by the end of October.
Many INSTITUTIONS,due to fiduciary duty, cannot invest until financials are updated. MM's know this -may be partly why MM's have been heavily buying. Updated financials will greatly increase the investor pool.

11) Upcoming Nob 8 USA ELECTIONS are providing cover for many pennies(until financials) to "preserve the legacy'' and are expected to increase the USA market for both medical and recreational MJ.

http://www.otcmarkets.com/stock/NEWC/news


New Colombia Resources in Negotiations to Build a 300 MW Thermal Coal Power Plant Near their Coal Property in Colombia in Association with a Foreign Entity that Secured a US$ 200 Million L.O.I. from a Major Construction Company in China

BARRANQUILLA, Colombia, October 19, 2016 /PRNewswire/ --

Metallurgical Coal prices continue to surge, up over 300% this year to over $ 230/tonne

New Colombia Resources, Inc. (OTC: NEWC) ("New Colombia or the 'Company"), a Colombian resource company listed in the U.S. with premium metallurgical coal mining titles and medical marijuana subsidiaries is pleased to report on the status of a project to build a thermal coal power plant in Guaduas, Colombia. Company subsidiary, Compañía Minera San Jose Ltda. entered into negotiations earlier this year with a foreign entity to build a 300 Megawatt thermal coal power plant near their estimated vast coal reserves. This entity has secured a Letter of Intent for US$ 200 Million from a major construction company in China to join a consortium to finance the development of the coal operations to feed this new plant and construction of the power plant.

New Colombia Resources' Director, Erasmo Almanza, received a report from the consortium partner on the status of negotiations of the installation of the thermal coal power plant in Guaduas. The report states there have been meetings with the financing team seeking the best financing option for the project and have modified the volume of power generation to optimize material inventory with time. A decision was made to program a meeting with Mr. Almanza after these adjustments are finalized to protocolize the negotiations and establish the new power company.

Guaduas is located 110 Km northeast of the capital of Bogota with an estimated 10 Million people. Colombia's energy generation is dominated by hydro-electric which causes concerns during droughts and a weather phenomenon.

The Company's coal reserves are estimated to be 70% metallurgical and 30% thermal, for a comprehensive estimate of probable reserves on their first concession contract ILE-09551 visit http://www.newcolombiaresources.com/assesment.php

The concession contract to be developed by the consortium is in close proximity to Concession Contract ILE-09551 and expected to have a similar 70/30 ratio of coking coal to thermal coal.

The Company feels this is a major development creating a local market for their thermal coal while developing metallurgical coking coal that has more than tripled in price this year to over $ 230/tonne. Additionally, the Company has met with a multi-billion-dollar Asian conglomerate interested in their premium metallurgical coal.

.

Goldman Sachs issued a report stating their projection that coking coal prices will remain high. http://www.bloomberg.com/news/articles/2016-09-23/goldman-says-higher-coking-coal-prices-are-here-to-stay

Shares in big board metallurgical coal producers like BHP Billiton (NYSE: BHP), Consol Energy Inc. (NYSE: CNX), and Cloud Peak Energy Inc. (NYSE: CLP) have seen significant price increases in the past few weeks.

Additionally, Company attorney is drafting an SEC Form 8K to address the elimination of debt that was recently being converted into free trading shares.

New Colombia Resources' Blue Gem coal is only found on the KY-TN border and central Colombia and is used to produce specialty metals such as Silicone to make solar panels, electric car batteries, and many more next generation products. New Colombia Resources has concession contracts and applications totaling 5000 HA of high quality metallurgical coal that will always be needed to produce steel and other specialty metallurgy products. Blue Gem coal miners in Kentucky are shutting down operations due to over-regulation creating a supply void the Company intends to fill.

New Colombia Resource also has a joint venture manufacturing medical marijuana products and is in the process of creating sustainable hemp industries in Colombia. To view or purchase Sannabis products visit http://www.sannabis.co. Follow Sannabis on Facebook for photos and testimonials at https://www.facebook.com/sannabis.cannamedicinal

New Colombia Resources, Inc.

New Colombia Resources, Inc. is focused on the acquisition and development of high-quality metallurgical coal properties and other available resources in the Republic of Colombia. They expect to have several revenue producing businesses including; metallurgical coal mining and rock quarry aggregates for domestic Colombian highway and railroad building projects. The Company owns 100% of La Tabaquera metallurgical coal mine in Colombia with an estimated 15- 17 million tonnes of reserves. They have another pending acquisition for 390 ha and a solicitation contract for 184 ha metallurgical coal concession. New Colombia Resources also holds a significant position in Sannabis SAS which legally produces medical marijuana products in the Republic of Colombia, visit http://www.sannabis.co. For more information on the Company visit http://www.newcolombiaresources.com.


the 2011 survey was actually over 16.9 million tons, so don't know why PR says 15-17M
metallurgical coking coal rose from 70 to ca 210 as per an independent article I posted
coking coal was valued at 9/ton in ground- a major factor in what a company might pay to buy the concession now that all permits except a soon pending env permit have been approved.

Can't find an updated in ground price-below I estimated very conservatively based on price increases for coal that the 2011 appraisal of ca 50 million would, due to said price increases,probably be a minimum of 75 million now -

but in 2011,when the 50 million est was made the work plan had not even been formed let alone approved -was approved Dec 2013 and env permit has been in process since then- NEWC addressed the last known govt change to aggregate operations and said change has been under formal review by the govt-instead of 1 big pit to utilize 2 separate permits for the protection of a stream-since NEWC responded via a scientific and geological professional company due to the desired changes it is likely NEWC's modifications will be approved- wouldnt be under formal review if the govt agency saw any glaring deficiencies-so this final permit for aggregate /coal operations could be 1 of the new developments to be PR'd soon.

Permits greatly increase value of a mine since the substantial scientific reports necessary to obtain permits are expensive and the land use planning process typically takes many years etc. Some mining co's now claim the process often takes 15 years in the USA(1 PR said an average of 15 years!)
One mining co I modded on another site-RVM- had a 12 year battle for 1 concession and was still working on it when Hecla bought them out.

So my conservative value of 22c/share for in ground value of coal below does not even take into to account these factors-
1) the added value of the permits
2)plus additional optioned concessions
3)full value of tripling of met coal price
4) also they added aggregate operations to the work plan and that value is not included in the 22c estimate either-1 highway under construction or soon to be-Opti has been there and would know more- -Ruta del Sol?- is only ca 11km from the mine
5) Med mj JV
6)Orphan drug application

as long as coal prices stay high in ground coal should be worth 100 million especially w additional concessions mentioned by website and PR's-if so in ground coal alone would set a value of .294 pps-your estimate($100M divided by 340M OS)

its anybodies guess how much value the additional 5 factors above might add- but since the trading has essentially ignored the mining value I would say most here consider the med mj and orphan application to be worth much more than value of in ground coal-so maybe 1 dollar pps as some have mentioned?

Though this is currently obviously trading on the med mj and upcoming orphan drug designation just want to remind that this has other revenue streams also which alone support a much higher value now that the co has apparently turned the corner.

so the following was my original prognostications:

A 2011 preliminary study noted on website indicated in situ value of thermal coal was 3 dollars/unit,coking coal was 9 dollars/unit- then placing in situ value of just under 50 million dollars(over 49 million)- this apparently does not include additional concessions being acquired since then
Coal,esp coking coal- rose significantly recently-from 70-210 due to China reducing domestic production etc
haven't found current in situ prices but based on such rise in situ for coking coal logically would be 3x larger

Also have blue gem coal "used to produce specialty metals such as Silicone to make solar panels, electric car batteries, and many more next generation products"

PR says est 15-17 million tons coal-2011 study said over 16.9 million tons-of coking and thermal and blue gem coals
My own conservative estimate of in situ(in ground) prices of ca 75 million and 340M OS alone would be a value of 22c/share- not counting the aggregate or the med mj

pps was decimated by toxic conversion resulting from years of typical land use planning delays but now that it seems evident the co has turned the corner and will not join the mining graveyard,the pps is greatly undervalued and has not taken these things into consideration
also what is the discounted future value of $6M/month in mining revenues-just saying the market/players here dont even know about these things-trading currently is based solely on med mj and orphan drug


bracketed material is mine:

from the 9-27 PR

Plans are to begin immediately crushing rocks to generate revenue[once final permit expected shortly is approved]. In 2014 the Company purchased a rock crushing plant with a 1000 m3/day capacity that will begin to generate revenue immediately. To see a financial model of the gravel operation, click here https://drive.google.com/open?id=0BxSKP5j2FlseOFE5TVdReGRCUUE

New Colombia Resources expects to partner with a major corporation to begin mining high quality metallurgical coal, however, the cash flow from the gravel operations will allow them to begin coal mining operations on their own.

The spot price of coking coal has skyrocketed this year from $70/tonne to over $ 200/tonne because of China's new policy to decrease production and other factors. Although the company director, Erasmo Almanza, entered into a US$ 200 Million LOI with an Asian firm, New Colombia Resources has been meeting with other major Asian conglomerates and soliciting steel mills to get the best deal possible to begin a sizable metallurgical coal mining operation. Original plans are for output of 30,000 tonne/month, at today's spot price that would produce monthly revenue of over $ 6,000,000.

Goldman Sachs issued a report last week stating their projection that coking coal prices will remain high. http://www.bloomberg.com/news/articles/2016-09-23/goldman-says-higher-coking-coal-prices-are-here-to-stay

Shares in big board metallurgical coal producers like BHP Billiton, Consol Energy Inc., and Cloud Peak Energy Inc. have seen significant price increases in the past few weeks.

The Peace Treaty signed yesterday in Cartagena between Colombia and the FARC will make generating interest for investment in Colombia much easier. New Colombia Resource also has a joint venture manufacturing medical marijuana products and is in the process of creating sustainable hemp industries in Colombia. To view or purchase Sannabis products visit www.sannabis.co. Follow Sannabis on Facebook for photos and testimonials at https://www.facebook.com/sannabis.cannamedicinal

New Colombia Resources is making strong efforts to retire debt that is being converted into free trading shares causing pressure to the company's stock price, although the Company believes this creates an attractive entry to point for investors.

New Colombia Resources' Blue Gem coal is only found on the KY-TN border and central Colombia and is used to produce specialty metals such as Silicone to make solar panels, electric car batteries, and many more next generation products. New Colombia Resources has concession contracts and applications totaling 5000 HA of high quality metallurgical coal that will always be needed to produce steel and other specialty metallurgy products. Blue Gem coal miners in Kentucky are shutting down operations due to over-regulation creating a supply void the Company intends to fill.