Caledon Resources Share Discussion Threads

[spights] 11/5/2011 07:00

1.55 AUD = 1.02929 GBP
Good Morning all.
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Dk thankyou.

[dr knowledge] 10/5/2011 14:27

See the three i boys are quoting that NDRC approval has now been granted but CDN have not been informed as yet - may explain todays rise and volume. Haven't got access to dealreporter where the article appeared today but sounds promising. ;-)

[spights] 10/5/2011 06:39

1.54 AUD = 1.01154 GBP
Good Morning all.

[spights] 09/5/2011 07:36

1.54 AUD = 1.01212 GBP
Good Morning all.
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[spights] 06/5/2011 06:25

1.54 AUD = 1.00507 GBP
Good Morning all.

[sitiain] 04/5/2011 09:10

Coal in China at 'Alarming Low,' India Short: Chart of the Day2011-05-03 22:00:01.0 GMT By Dinakar SethuramanMay 4 (Bloomberg) -- Coal inventories in China, whichgenerates about 70 percent of its electricity from the fuel,have dropped to an 11-month low, pushing prices higher, as thecountry faces electricity shortages. India's stockpiles are at"critical" levels, the nation's regulator said.The CHART OF THE DAY shows current and typical coalinventories at power plants in China and India, the world'sbiggest- and third-largest users of the fuel. India had 28 ofits 85 coal-fired generators with stockpiles at "critical" or"super critical" levels of fewer than seven days' supply onApril 28, the Central Electricity Authority said. Inventoriesare typically 15 to 30 days, the regulator said on its website.China's power plants had total inventories of 8.6 millionmetric tons at the end of last month, "which amounts to analarming low of nine days' consumption versus the norm of twoweeks," Helen Lau, an analyst for UOB Kay Hian Ltd. in HongKong, said in a report yesterday. Electricity generation inChina expanded 11 percent and industrial output rose 15 percentin the first quarter from a year earlier, compared with anincrease of as much as 8 percent in coal production, she said.China's central and eastern regions have already facedtight power supplies this year, and some regions may have"relatively large" deficits this summer, when hot weatherboosts demand because of use of air-conditioners, the NationalDevelopment and Reform Commission said on April 15.Power-station coal prices at Qinhuangdao port, a Chinesebenchmark, rose to the highest in more than two years to a rangeof 805 yuan ($124) to 820 yuan on May 2 as stockpiles slumped tothe lowest in almost 12 months, according to the China CoalTransport and Distribution Association. Qinhuangdao ships abouthalf that nation's seaborne coal. Inventories there plunged 13percent from a week earlier to 4.89 million tons, the lowestsince mid-May

[spights] 04/5/2011 07:13

1.52 AUD = 0.997161 GBP
Good Morning all.

[spights] 03/5/2011 14:22

Yes a rather sticky one....I do not hold GCM.

[owdbuffer] 03/5/2011 12:21

"just made me wonder why no other suitor has emerged" - yes a puzzle! But getting involved via a counter bid at a late stage must be rather daunting and a Company would have to be very motivated, have resources, be sure of the Oz Government reaction, have their own shareholders on board etc. SD has Peabody connections, but they are not interested apparently. I wish!

and why GRAM are still seemingly crawling to the finish line - just Chinese bureaucracy in all probability. It will come. There is life in China Jim, but not as we know it!

I only hold via POLO so don't lose much sleep. CDN must be worth a punt though if you have any spare cash, but IMO POL are a better bet given the range of interests.

GCM being the fly in the ointment unfortunately.

[dr knowledge] 03/5/2011 11:18

Marben(et al), thanks - Id found all of the above duirng my own search but was still unclear in respect of COOK (I do actually think that the agreement remains in force). Agree though that Minyango is the potential prize here but bearing in mind that when GRAM made their inital offer, Minyango's resource estimates where some 300% lower, CDN had not received formal approval for Wiggins allocation (I beleive?) and final feasability studies re Minyango were incomplete...................just made me wonder why no other suitor has emerged and why GRAM are still seemingly crawling to the finish line! ;-)

[marben100] 03/5/2011 10:59

Chapter and verse on the Xstrata agreement is given in Caledon's ASX prospectus:

See p88 (p90 of the PDF file). It is consistent with flyfisher's research:

"12.4 Marketing Services Agreement"

CC has entered into a marketing services agreement with Xstrata dated
14 December 2006, under which CC appointed Xstrata as its exclusive
agent to sell and market the Cook Coal on behalf of CC. Under this
arrangement Xstrata may itself acquire coal from CC...

...The agreement continues for the term of the Mining Sublease. The
agreement automatically terminates if the Mining Sublease expires or
is terminated, or if the Logistics Agreement terminates for any reason."

And

"12.5 Logistics Agreement

CC has entered into a logistics agreement with Xstrata dated 14
December 2006, under which the parties agree to certain commitments
with respect to the transport of coal, whereby Xstrata is obliged to use
all reasonable endeavours to assist CC in its negotiations with rail and
port service providers for the purposes of securing capacity for CC's
anticipated production from the Cook Mine...

...The Logistics Agreement continues for the term of the Mining Sublease.
The agreement automatically terminates if the Mining Sublease expires
or is terminated, or if the Marketing Services Agreement terminates for
any reason.

Xstrata may terminate the Logistics Agreement if CC fails to pay any
amount owed to Xstrata under the agreement within five business days
after the due date for payment. CC may terminate in the event of a
force majeure event affecting Xstrata."


HOWEVER: note that these agreements only relate to Cook and not to Minyango. Now that WICET is going ahead and Caledon has a 4MT p.a. allocation, Caledon will have very substantial additional export capacity, and coal to export, in the future.

IMO a substantial part of the value that GRAM attributes to Caledon lies in the value of Minyango and that WICET capacity allocation. Note that WICET was not confirmed at the time that the Essar bid fell through - and hence there was no certainty that export capacity would be available for Minyango coal. As I commented at the time, confirmation of WICET and Caledon's capacity allocation had a major impact on the value of the company.

Minyango coming onstream should treble or quadruple Caledon's output though, of course, significant CAPEX will be required to get there. It is also noteworthy that Minyango will be another underground mine and not so vulnerable to Queensland flooding. Caledon's latest quarterly report proves that point, whereas open pit mines will take many months to get back up to full capacity. This fact should improve the attractiveness of the asset to an acquirer.

Cheers,

Mark

[flyfisher] 03/5/2011 08:56

dr knowledge - the extract below is from a google search.

A sub-lease agreement with Cook Resource Mining Pty Ltd and Xstrata (the former owner and parent company of Cook) gives Caledon exclusive rights to produce coal from the Cook Mining sub-lease area and exclusive rights to use the established Cook Resource Mining coal preparation plant on a unit-rate basis.

Through a marketing services agreement, Xstrata markets and sells Cook Colliery coal on behalf of Caledon Coal; Xstrata is expected to secure the best possible sales price considering product quality and current market conditions, and it retains the right to acquire the coal if required. The marketing services agreement continues for the term of the mining sub-lease agreement. A logistics agreement with Xstrata provides for cooperation in securing rail and port capacity for the Cook Colliery's coal production over the term of the sub-lease.

[dr knowledge] 03/5/2011 08:37

Afrim - thanks, very hard to find up to date info re the marketing services agreement with Xstrata, but my feel is that it is still very much in play. ;-)

[spights] 03/5/2011 07:13

Good Morning all and Mark. Excellent news above.
yehaaaaaaaaaaaaaaaaaaaa

[marben100] 30/4/2011 13:51

Quarterly production report released in Aus on Friday:

Though the share price there declined slightly to A$1.51 (but on a meaningless volume of 5,000 shares traded), it looks fine to me. Despite weather impacts on January production, RoM production was up to 179kt, with good coking coal recovery of 66.6%. 121kT of coking coal were sold at at average price of US$214/T (expected to increase to US$258/T in the second quarter). On a rolling four quarters basis, that gives us record RoM production of 709kT. Still a way to go to the 1MT target - but getting there.

Those levels of production and pricing should be nicely profitable, even allowing for the strengthening A$ ;-).

Should be nothing to worry the Chinese there - on the contrary, they should be even keener to proceed.

Cheers,

Mark

[afrim] 28/4/2011 23:14

Dr K, I remember this but I thought that the Xstrata marketing rights were for a certain period only, which was agreed from when CDN turned from a Gold miner into a Coal miner. I would have to look through past docs, which I may do when I'm back as I am traveling at the moment!
GLA & enjoy the weekend!
A

[dr knowledge] 28/4/2011 11:48

Anyone - what will happen to Xstrata's sole marketing rights with COOK once (and if) GRAM cross the line? Is this agreement still in situ with Xstrata? It was cited as the reason Essar pulled out? ;-)

[spights] 22/4/2011 12:22

Hope you are all having a good weekend. See you on May 3rd.

[spights] 21/4/2011 09:33

I like this section.


During the final quarter of 2010, Caledon produced 170,000 tonnes of raw coal, 5 percent more than 2009. Coking coal production reached 116,000 tonnes and 27,000 tonnes of thermal coal were produced, representing growth of 6 and 79 percent respectively. Caledon sold 116,000 tonnes of coking coal and 38,000 tonnes of thermal coal.



yehaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

[spights] 21/4/2011 08:35

Phillis yes:o)))))))))))))))))))))))))))))

[phillis] 21/4/2011 08:26

longer running than the "Mousetrap"

[spights] 21/4/2011 07:15

Potential Acquisition - Non-Solicitation Agreement signed with GRAM





Introduction



On 8 November 2010 the directors of Bidco, GRAM and Caledon announced that an agreement in principle had been reached with GRAM on the terms of a Possible Acquisition of Caledon by Bidco, a wholly owned indirect subsidiary of GRAM.

On 11 April 2011 Bidco, GRAM and Caledon announced that GRAM had received approval from the State-owned Assets Supervision and Administration Commission on behalf of the State Council ("SASAC").



Signing of Non-Solicitation Agreement



The non-solicitation agreement between Bidco, GRAM and Caledon that was signed on 27 January 2011 expired on 28 February 2011.



Following receipt of the SASAC approval, Bidco, GRAM and Caledon have now entered into a new Non-Solicitation Agreement on the same terms. The new Non-Solicitation Agreement will expire (i) on 15 June 2011 if the Acquisition Announcement has not been made or the approval set out below is refused or cannot be obtained by that date; or (ii) if the Scheme terminates or lapses in accordance with its terms or, as applicable, the Offer is withdrawn by Bidco (with the consent of the Panel, if required) or lapses or the Non-Solicitation Agreement is otherwise terminated in accordance with its terms.



Pursuant to the new Non-Solicitation Agreement, Caledon has also agreed that it shall not make any request to the Panel for the imposition of a deadline by which GRAM or Bidco must announce a firm intention to make an offer for Caledon under Rule 2.5 of the City Code or otherwise be subject to the restrictions set out in Rule 2.8 of the City Code prior to the termination of the new Non-Solicitation Agreement.



Status of pre-conditions



Any announcement by GRAM or Bidco of a firm intention to make an offer for Caledon pursuant to Rule 2.5 of the City Code, remains subject to satisfaction or waiver of the following pre-conditions:



(i) the unanimous recommendation of the board of Caledon of the terms of any such offer, having been advised by RBC Capital Markets that the terms of such an offer are fair and reasonable;

(ii) the receipt of all necessary approvals from regulatory authorities in China relating to the Possible Acquisition, including the following:

§ project approval for outbound investment from the National Development and Reform Commission of China on behalf of the State Council;

§ approval for outbound investment from Ministry of Commerce of China; and

§ approval for the remittance of foreign exchange out of China from the State Administration of Foreign Exchange of China; and

(iii) finalisation by GRAM of the terms of its financing for the Possible Acquisition.



Mr Li Jinming, Chairman of GRAM said:



"We are pleased to have agreed an extension of the non-solicitation agreement. GRAM continues to actively engage with the regulatory authorities in China in an effort to obtain the necessary approvals within the period covered by the non-solicitation agreement."



Mark Trevan, Managing Director of Caledon said:



"The board of Caledon continues to believe that GRAM's Possible Acquisition would be very positive for Caledon's shareholders and employees. We are in regular contact with GRAM and acknowledge and appreciate their efforts in progressing approvals with the Chinese authorities."



General



All defined terms in this announcement shall have the same meaning as those contained in Caledon's announcement of 8 November 2010 falling under Rule 2.4 of the City Code.



Enquiries:



GRAM / Bidco

Peter Shou [phone]

Frank Zhu + 612 8307 8899

Wang Lixing [phone]



Caledon

Mark Trevan [phone]

Jeremy Gorman [phone]



RBC Capital Markets, financial adviser, nominated adviser and corporate broker to Caledon

Richard Horrocks-Taylor [phone]