WEEKLY PICK - MARCH 11/07 - 18/07
 
RED HILL ENERGY (RH.V)

Last Price:  0.80  Change: -0.040  Percent:  (5.0%)  Target: 8.43

Shares Outstanding:  32,559,874

Market Cap:  $26,047,899

Sector:  Mining & Exploration, Energy

Target Price:  $8.43

Calculations for target price:

Ulaan Ovoo Coal Project

Current coal reserves = 206,200,000 tonnes

(Price of coal per ton)-(extraction costs per ton) = profit per tonne
$55.00USD/ton - $38.00USD/ton = $17.00USD/ton

206,200,000tons x $17.00/ton = $3,505,400,000.00

Current # shares outstanding: 32,559,874

$3,505,400,000.00 / 32,559,874 = $234/share

$ per share / life of mine
($107.66 / 20 years) = $5.38

Chandgana Tal Coal Project

Current coal reserves = 100,000,000 tonnes

(Price of coal per ton)-(extraction costs per ton) = profit per tonne
$55.00USD/ton - $38.00USD/ton = $17.00USD/ton

100,000,000tons x $17.00/ton = $1,700,000,000.00

Current # shares outstanding: 32,559,874

$1,700,000,000.00 / 32,559,874 = $52.21/share

$ per share / life of mine
($52.21 / 20 years) = $2.61

Potential Uranium Prospects

Compared to similar companies avg. = $0.44/share

Providing clean fuel for China's insatiable energy appetite:

Red Hill Energy (formerly UGL Enterprises) is a publicly traded (TSX-V: RH) energy company head quartered in Vancouver Canada, that engages in the exploration, development and (currently) pre-production of advanced coal and uranium projects. The Ulaan Ovoo Coal project has just had it's scoping study completed  and shows the potential for a 20 year highly profitable mine. With 206.2 million tonnes of  high quality bituminous coal to NI43-101 compliance, the Ulaan Ovoo project continues on it's path to towards production. The newly acquired Chandgana Tal Coal project has historical data showing 90 million tonnes of sub bituminous coal and Red Hill plans to move the resource to  NI43-101 standards. Red Hill is joint ventured with Mega Uranium Ltd (TSX-V MGA) of Toronto and has 11 Uranium properties covering 216,170 hectares. A 4,500 meter drill program is currently in progress on the Baganurat and Maikhan Tolgoi Uranium properties.

Huge coal and uranium reserves on China's doorstep:

2006 has seen Red Hill Energy complete it's scoping study on it's 206.2  million tonne Ulaan Ovoo high quality Bituminous coal project. With the study showing a 20 year profitable mine life on the project and the recent acquisition of five mineral licenses including licenses that are contiguous and entirely surrounding Red Hill's 206.2 million tonne Ulaan Ovoo coal project Red Hill continues on it's expansion and path to production.

Red Hill also added the acquisition of the new Chandgana Tal coal project and has completed it's further Uranium exploration on it's Baganurat and Maikhan Tolgoi  properties and now has a 4500 metre drill program under way.  Surface exploration has also now begun on the highly prospective Jargalan Uranium property in west-central Mongolia. Continuing exploration on 2 more of the most prospective Uranium properties out of it's 11 covering 216,170 hectares will proceed through the coming months. Ulaan Ovoo has some of the largest high quality clean coal reserves in Eastern Asia.



Technical Analysis:

Analyst Opinion:

Danny Deadlock from Stockhouse:  http://www.stockhouse.ca/shfn/editorial.asp?edtID=18999 

Danny Deadlock from Stockhouse: http://www.stockhouse.ca/shfn/editorial.asp?edtid=18866&page=0

 

THIS GAZELLE IS READY TO RUN!!!

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