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An AIM high flier now well down from its peak at 135.5p, entrepreneurially-flavoured Cambrian has options on processes for the liquefaction and gasification of thermal coal. Says Byrne: ‘I’m hopeful we’ll find something in six months.’

Companies await new tax breaks from governments to help revive conversion, which, he argues, could involve capital costs of $25 to $30 a barrel and operating costs of only $10 — against a current $59 market oil price. With cheerful latest earnings figures, Cambrian also holds stakes in Western Canadian Coal at 206p, said to be drawing £4 million cashflow a quarter from its projects, and Coal International, at 92p, with large potential reserves of thermal coal in West Virgina.

Coal conversion schemes tend to come round whenever the oil price surges and several past examples have had short shelf lives. But the possibilities could add some speculative spice to some of the players.

Imperial progress in Siberia
One star performer with a more conventional approach to oil exploration is Imperial Energy, which floated on AIM last year at 25p. The company’s Siberian prospects appear to keep improving and the other day an independent evaluation of Imperial’s reserves by TRACS International, suggested 80 per cent ownership of possible reserves of 157 million barrels, worth £241 million at an assumed $30 a barrel (against today’s $58 market price).

That compares with Imperial’s AIM value of £100 million, even after an explosive rise to 415p a share. Some lucky punters are sitting on such hefty gains that partial profit-taking looks prudent, but there could be more worthwhile gains yet if present sentiment persists.

Aussie uranium group eyes AIM
Redport, an Australian-quoted uranium hopeful, is considering floating its shares on AIM. Advised by Greenhill Capital of New South Wales, and chaired by lawyer Richard Homsany, Redport has an option to earn up to 80 per cent of the Lake Maitland uranium project in Western Australia, containing a potential 17 million lbs of uranium, which would have an in-ground value of £250 million.

The company, whose Down Under share price of 2.9p values it at nearly £10 million, has stakes in several other projects in Australia, where political curbs on uranium development are crumbling, and royalties in Namibia. The uranium vogue could help Redport, an entrepreneurial company which began life Down Under as Minotaur Gold, find favour.

Coining it in copper?
Copper still beguiles as both an ‘old’ and ‘new economy’ metal expected soon to be in short supply. Philippines-fancying Copper Resources, chaired by former Ashanti Goldfields boss Sir Sam Jonah (not everyone’s favourite) hopes to develop a 2.3 billion lb copper project at Hinoba-An on the Negros Island there and has an option on a big project at Haib in Namibia.

Headed by Australian chief executive officer Christopher Jordinson, the company, which came to AIM in April with a £3.4 million placing at £1, claims £9 million cash and no debt, as well as easy access to China’s copper-hungry markets. But profit taking by pre-float punters (let in at a fraction of the float price) has knocked the shares back to 45p, where they should offer medium-term recovery potential.

Meanwhile, another copper hopeful, Batu Mining, with copper and gold exploration licences over three per cent of the land mass of Mongolia, is toying with an AIM float, possibly advised by Westhouse Securities. Headed by Doug McGay, an Aussie formerly with tycoon Robert Friedland’s Ivanhoe gold group, Batu is believed to be contemplating joint ventures with major mining groups, such as Placer and American Barrick.