Coal of Africa Share Discussion Threads

[boodgewoodge] 10/8/2016 08:48

under huge pressure on the JSE , need management to step in and give some direction and some detail on the way forward to arrest this rather rapid downward spiral

[boodgewoodge] 06/8/2016 07:49

2bozmo - apologies are in order for that episode of sarcasm. Coal India (CIL) is looking at entering into a pact with a South African government miner to jointly acquire coal mines in that country. The company is further considering signing of an MoU with a mining company owned by the government of South Africa to jointly undertake identification, acquisition and operation of coal assets in South Africa , does this include CoAL 's assets ?

[boodgewoodge] 05/8/2016 11:31

lets hope that chit chat was between Mr Brown and Mr Modi and not at an Eskom open day

[2bozmo] 05/8/2016 10:58

Hearing some chit-chat this morning that Coal India are looking to acquire S African coal assets. They supply 80% of Indian thermal coal, but are struggling to meet production targets.Maybe this is where our Mittal link comes in? After all, South African imports are higher quality and cheaper than Australia/Indonesia.

[2bozmo] 05/8/2016 09:53

Koko defends Eskom amid dispute with eight coal minersWHEN Coal of Africa (CoAL) unveiled plans to takeover Universal Coal, an Australian-listed company operating in Mpumalanga province, it said this might be the first of other consolidatory coal deals in South Africa.Just under a year later, and the proposal ended in failure, even though shareholders approved the R1.38bn deal The reason for the failure? CoAL's bid was conditional on Universal Coal producing sufficient cash flow from coal sales to Eskom.It's another example of how the power utility's hardline approach to its primary energy costs, of which coal is the largest, is freezing investment in the sector even though it's likely Eskom will have a coal deficit again in about five years' time.One of the other handicaps to new coal supply to Eskom, other than price, is a requirement that new suppliers ensure they are more than 50% empowered – a requirement that is a factor in Anglo American deciding to sell its thermal coal mines in South Africa.Matshela Koko, head of group generation at Eskom, said however that the utility has no choice. He disclosed that the company is actually in dispute with not just Universal Coal, which is trying to seal a 2.2 million tonne coal sales agreement (CSA) from its New Clydesdale Colliery (NCC), but seven other companies.Said Koko: "Universal Coal and seven other coal suppliers have been negotiating a CSA for the last 18 months. We are in dispute because they have offered a rand per gigajoule much higher than Nersa [National Energy Regulator of South Africa] allows. "If we sign today, Nersa will not allow Eskom to recover the costs as prudent expenditure."Nersa, created by an act of Parliament to monitor the energy sector, now wants Eskom to account for its primary energy costs on a station-by-station basis."This being the case, Eskom will be negligent to commit to a cost that is not considered prudent by Nersa," he said. "It's an exciting development that Nersa is stepping in to regulate coal costs as an input to the regulated prices of electricity," he added.Koko said that Eskom's average cost for a 23.5CV [calorific value] coal was R19/GJ, a level that had been reached after a 17% price escalation over the last five years. The Eskom tariff, however, is regulated at Nersa at 9.5%."For real costs of coal to come down it is sensible to cap the 23.5CV coal at a delivered price of R19/GJ. For lower CV coal the cap is lower," he said. "We are directed by Nersa and the consumer to drive the coal costs down."It will not be sensible to contract with Universal Coal at prices higher than R19/GJ and then attempt to pass the costs to the consumer," he said. "The cap applies to Tegeta as well and, of course, they will receive a similar treatment."Tegeta Exploration & Resources is the Gupta family company which is thought to have benefited from the close relationship between the Gupta brothers and President Jacob Zuma.Universal Coal executive director, Shammy Luvhengo, confirmed the company had been in discussions "... like many other parties for a while" with Eskom, but declined to provide details."We believe any pricing is project specific and we cannot comment on the details of such discussions with Eskom through any media platform," he said. "We remain committed to finalising the discussions with Eskom as soon as possible."Keaton Energy and Wescoal Holdings, which combined at hoping to supply Eskom with between four to five million tonnes of coal a year, declined to comment when asked on the progress of their CSA negotiations.

[boodgewoodge] 04/8/2016 07:19

we have too much potential to become a significant producer of quality product than to succumb to a takeover . David Brown and the board have to source and finalize the acquisition of an IGA and this time to have the expertise and class to have all the the dotted lines filled and not drag things on for ages (without letting shareholders know exactly the reason for the delays ) whilst hoping that dotted lines will be signed

[2bozmo] 03/8/2016 09:58

Calendar 2017 Richards Bay Coal trading over $63. This was $38 last year. Vele is now a viable proposition, as is Mooiplaats. Hopefully if we can get regulatory approval for Vele or Makhado soon then we can progress. I maintain there will be further consolidation in the SA coal sector, and we must be a potential target for someone as well as seeking our own targets for cash generating assets. Think David Brown has the expertise and class to make something happen.

[boodgewoodge] 03/8/2016 07:32

some confidence instilling positive sentiment would be an announcement detailing our plan going forward with reference to acquiring that elusive income generating asset (IGA) , Mooiplaats has to taken off our books (surely its suitors has had sufficient time for the DD ) , Hengshun should come on board committing to their equity investment in Baobab (they've also had an extended period of time for their DD) , and then we can wait for Makhado and Vele to fall into place both of which seems to be some time in the future before they start producing any saleable product . without that IGA we really do have a problem and languishing at these levels might be an optimistic view

[redtrend] 01/8/2016 08:19

2bozmo - why do you interpret this as a cracking update?

It's not clear what the short and medium term plan is to me, to get us through this period where we have no production, Makhado still on suspension pending appeal and USD 20M cashflow left...

[boodgewoodge] 29/7/2016 09:09

by the time CoAL starts moving higher we will be ready to sell our product to DE Beers !

[2bozmo] 29/7/2016 07:42

Cracking quarterly update. Should see a nice move higher today

[2bozmo] 21/7/2016 15:05

Hell yes!!!

[boodgewoodge] 21/7/2016 13:38

ok , and if the revised offer is 13 to 14 c then from you a pint to all subscribers of this chat who actively participated today

[2bozmo] 21/7/2016 13:14

I meant Universal market price was 20 cents plus 1 Coal Share but now valued at 13/13.5 cents by market.

[boodgewoodge] 21/7/2016 12:47

2bozmo , referring to your post on 20/07/16 09h24 you say we were paying 26c and NOW about half that . is there an offer in the making ???

[benny67] 20/7/2016 09:54

Well the quarterly was affected by some larger stripping, also large costs involved with the takeover,

16 million EBITDA for the year, should translate into 10 million npat,

but more importantly there is no way larger UNV shareholders are going through the same process again,

this takeover wasn't handled at all well , the last minute declaration about the cashflow requirments, all a bit mickey mouse,

CZA shareholders should be asking how much did this cost them given it cost UNV 2.9 million aussie, I would have to say at least double for CZA.

[2bozmo] 20/7/2016 09:43

I believe we'll make another offer for universal. Given NCC represented 30-40% of value wasn't worth it.

[boodgewoodge] 20/7/2016 09:25

UC's share price suggests very differently , back to 13 - 14 c range post lapse of offer as well as post quarterly , which was well expected , Kangala is without a doubt a gem , 95% acceptance knowing the Kangala value , its just a matter of time .cza needs to understand of " striking whilst the coal is hot " .

[2bozmo] 20/7/2016 09:24

Universal numbers weren't impressive. Net cash flow 1.7m Aussie. No Eskom agreement. We were in essence paying 26 cents and now about half that.

[benny67] 20/7/2016 08:55

Ha Ha,

a revised lower price for UNV is not going to happen,

there is zero chance UNV want to entertain a low ball offer from CZA,

i had a look at their quarterly, theynare going gangbusters at Kangala, and they are going to start anyway at NCC,

short story UNV does not need CZA.

[boodgewoodge] 20/7/2016 08:13

the best way forward is the acquisition of UC , a revised lower offer due to NCC being in limbo , Kangala is going to prove to be a gem , all regulatory processes should be a formality , there is unlikely to any funding issues . immediate production and an in place CSA is what is required

[sandman99] 20/7/2016 07:54

Surely now is the time to do the upgrade to Vele and start production again.
The engineering work has been completed, it just needs to be constructed.

[boodgewoodge] 20/7/2016 07:22

some correspondence from the company concerning our plan of acquiring an income generating project would be welcomed

[boodgewoodge] 15/7/2016 13:31

congratulations to the board , well worded , with our intentions undiluted , its for UC to go out there and mow the lawn , its only a matter of time before we have that income generating asset and quite likely it is going to be UC .