Since its incorporation on February 18, 2010, Aim Exploration Inc (OTCMKTS:AEXE) has never reported any revenues. However, that could soon change as the company’s Anthracite coal, continues to experience an elevated level of global interest.
The exploration stage company is the subject of renewed interest on Wall Street given the potential impact of the company venturing into the export business. Investors have already taken note of potential business deals that could come into being, seen by an increase in the stock’s trading volumes.
After one of the worst runs, last year, AIM Exploration looks set to bounce back after finding some level of support at the $0.002 handle. Late last year the stock bounced back to the $0.01 handle before retreating near its all-time lows
The stock needs to rise and close above the $0.01 handle if it is to be considered a bounce back play amidst talk of Anthracite deals overseas.
About AIM Exploration
AIM Exploration is an exploration stage company focused on the acquisition and exploration of mineral deposits with the aim of taking them into production. The Company examines and investigate pieces of land that it believes contain valuable minerals for discovering the presence of ore.
It currently holds interests in three anthracite coal mining concessions located in the province of Otuzco in Peru. The company plans to mine about 1, 000 hectares of land in pursuit of valuable minerals.
Aim Exploration trading volume have shot to record highs of 100 million in recent weeks on the announcement the company could soon be able to export part of its anthracite productions. The company has already received an anthracite order from Poland worth 30,000 metric tons per month.
Given that the price of Anthracite on Alibaba ranges from $100 to $400 per metric ton, Aim Exploration could be in for a big payday, over the next few months.
Poland state cola trader Weglokoks is set to receive its first shipment of coal from the U.S in the next few months. Early indication is that state and private buyers will be taking at least three more shipments over the next seven months, with AIM Exploration touted as one of the possible suppliers.
“The economy is based on energy. We have quality energy reserves, “said JR. Todhunter CEO of Aim Exploration.
In addition to the growing interest from Poland, Aim Exploration has received multiple requests from buyers for the sampling of the purity of its anthracite. The requests according to the exploration stage company could lead to possible purchase orders and shipments
The anthracite coal that the company boasts in its properties is of high quality and suitable for water filtration, for high-grade aluminum blends and for high heat for forging steels.
Buoyed by the growing interest in anthracite coal, AIM Exploration is planning to change its name to AIM Energy. The name change will reflect the company’s growing scope of business as it moves to start servicing orders from potential buyers.
The company is also planning to issue a share structure change to align with its market capitalization and share structure that potential suitor’s desire.
Improving Financial Strength
AIM Exploration did not report any revenues for the three months ended November 30, 2017, as it has been the case over the past seven years. While the company insists that its ability to generate significant revenues remains uncertain, the same could soon change should the company receive orders abroad.
A further indication of the company’s improving financial position is the fact that its net loss more than halved to (-$164, 188) in the recent quarter, compared to a net loss of (-$600, 154) reported a year ago. The company attributes the decrease to lower directors and public relations fees. Total operating expenses also dropped to $191,967, compared to $530,164 reported a year ago.
AIM Exploration had net cash flows of $118, 451 as of the end of the November 30, 2017, compared to $4,806 reported a year ago.
“We expect we will require additional capital to meet our long-term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities. […] Our plan of operation for the next twelve months is to grow our business through the exploration of our current properties and additional properties that we acquire,” AIM Exploration in a regulatory filing.
Growing global interest for Aim Exploration’s, Anthracite Coal underscores the fact that the company is on the brink of generating its first revenues. Increased trading volumes is an indication that investors are slowly taking note of the fact that the firm could be on the cusp of generating positive cash flow, depicted by declining net loss in the recent quarter.
Aim Exploration appears undervalued at the current levels, should it ink deals for the exportation of its Anthracite coal.
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Disclosure: We have no position in AEXE and have not been compensated for this article.