As soon as America West Resources, Inc. (OTC:AWSR) announced it had brought the development of its Horizon Coal Mine to a successful end, it fired investors’ enthusiasm so much that they quickly made AWSR stock go through the roof.
Gaining a staggering 39% in value, AWSR stock closed yesterday’s session at a three-month high of $1.80 per share. Moreover, the trading activity was so rigorous that the turnover of AWSR stock set a nine-month record of 264 thousand. The latter is also 16 times higher than the daily average trading volume.
To make the impact even bigger, third parties have now resorted to the services of paid promoters to capitalize on the good news. A three-month advertising campaign that expired recently has now been renewed in exchange for 12.5 thousand restricted shares. Although the time frame for the new campaign remained undisclosed, AWSR has every chance of scoring higher in the upcoming sessions.
Judging from the press release mentioned above, AWSR appears not only to have finished developing the Horizon Coal Mine, but also to have commenced full production. Since the site has already been estimated to contain around 16 million recoverable tons of thermal coal reserves, the company expects to reach a monthly coal production rate of at least 60 thousand tons.
America West Resources, Inc. claims to be a producer of low-sulphur coal. As it seems, the company carries out an open-door policy toward its stockholders both in terms of news and financials. So far, AWSR has issued five press releases in May alone. In addition, it recently filed a full-on 10-Q form covering the quarter ended Mar. 31, 2011. According to the unaudited report, the company has generated:
- $280K in cash;
- $2.5 million in current assets vs. $19.1 million in current liabilities;
- coal sales revenue in excess of $3.4 million, which is three times higher as compared to Q1 2010;
- a net loss of $6.6 million, also bigger than the loss of $5 million incurred in Q1 2010.
Seen from a financial perspective, AWSR has achieved decent revenue from sales. Yet, it is not big enough to cover the huge working capital deficit any time soon. Nevertheless, if the company manages to realize the full potential of its Horizon Coal Mine, it will stand a good chance of going in the black.
