Coal of Africa Share Discussion Threads

[2bozmo] 26/11/2016 09:35

Sorry boodge, that Makhado funding not CGA funding part

[boodgewoodge] 26/11/2016 09:07

quite a shocker if i understand this correctly : after the last few months of funding talks , expect accelerate funding discussions with everything in place by JUNE 2017 , and is this the funding that is necessary for the acquisition of an income generator which we need URGENTLY , does this mean that we are only going to be in a position to acquire an income generating asset , the ' big ' deal around June 2017 ?

[2bozmo] 25/11/2016 16:57

Here are myAGM notes. I'll try and expand or answer any questions. Present: Bernard Pryer (Chairman) and David Brown Others there: 3 shareholders, maybe a journo and few from Tavistock Communication where held; Dealt with main business and resolutions; went through with no issues; One investor questioned why options vested were given cash despite being under water. DB corrected that the cash amount was just the value of the options given by the Black-Scholes model. These pure options are now performance rights which are only granted if total shareholders return is achieved. It's not free cash! Slightly tedious as always and lasted 15-20 mins before DB said a few words and said investor above asked a few questions. I'll incorporate what was said into my conversation with DB afterwards. I've met DB a number of times previously and have regular e-mail contact and given that confidentiality will not share everything he said. Given the coal price performance positive, the outlook is bright. DB believed the market cap of the company is low relative to NAV/IRR of project; regulatory environment that needs to be completed; Makhado: Water license expect to be granted first quarter 2017; surface rights in 3 of the 5 areas complete. They could have completed the water license this year but decided to wait. There will be additional costs when the licence is granted so decided there's no urgency. Confident will be approved again. Vele: Expect the perennial stream water licence to be granted over the next couple of weeks. The decision whether this gets the go ahead will probably be heard at the March board meeting. Sounded positive that it will. Mooiplaats: He presented some initiatives to the board this week (again not say what they were). He's still confident that it will be sold but it's been frustrating. I suggested they might mine it themselves but with $20m required over 4 years for a project that would last 11 years they would rather not invest that sum. Cash: The key date is June 2017 when the final Rio Tinto payment is due. He didn't go into detail but said there were a lot of initiatives going on and was confident they would come to fruition. He doesn't expect this to be an issue. CGA funding:Expect a mixture of debt and equity with it being difficult to arrange a debt package lent against future cash flow 4-years down the line so some part liquidation but will allow environment for re-rate. Some will be raised by selling stakes in individual projects. They are all well supported by current shareholders (see the memorandum for Universal deal): Had some funding talks over last few months; expect accelerate funding discussions with everything in place by June 2017; CGA: This wasn't really mentioned during the AGM but we discussed at length. They have been talking to Keaton and when I mentioned yesterday's Keaton news he had a glint in his eye, but they are one of a number of companies they have been speaking with. He also mentioned that they have also been approached by a number. He firmly believes once they get first deal then more acquisitions will follow, and the COAL we see in 2 years time will be significantly different from the one we see at present. The first deal will be a 'big' deal; glad they didn't do the Universal deal as net cash would be AUD25m lighter than forecast. Final thoughts: In the time I spend talking to him, there is no doubt in his mind, COAL will transform, as will the industry. He is also immensely frustrated by regulations and that the time frames have been delayed and no CGA has been acquired. However, he's very confident everything will come together and they'll be a significant re-rating. I cannot tell you everything he said, as he asked for an element of confidentiality, but suffice to say, his belief appears well founded and there is the potential for an announcement over the next few weeks. I'm long and will continue to buy any dip! GLA, DYOR etc

[ianio5691] 25/11/2016 14:51

All waited with baited breath, whilst the fat lady clears her throat....

[boodgewoodge] 25/11/2016 14:17

the market has spoken ...... no income generator , no further upward trajectory spikes ! prepare for our , as per usual downward slide until CZA's SENS/RNS detailing the BINDING offer for the takeover

[slade_wilson] 25/11/2016 13:14

oh well, all resolutions passed at least.

[boodgewoodge] 25/11/2016 13:07

damn we did'nt buy Keaton !!!!! only kidding after all it is still black friday , thought we could have got it at last weeks price !!!

[slade_wilson] 25/11/2016 12:49

Isnt the AGM over by now? Didn't it start at 10am?

[ianio5691] 25/11/2016 12:37

30p would make me a very happy bunny! :-)

[ianio5691] 25/11/2016 12:07

Really surprised at our shareprice given the recent rise in coal price.

A rising tide usually lifts all ships.

We must be really off the radar at present, so any good news will hopefully light a rocket.... Just to play catch up.

[boodgewoodge] 25/11/2016 11:40

this AGM is surely heavy weighted , both Keaton's and CZA 's shares on the JSE are just stagnant

[ianio5691] 25/11/2016 11:00

Will be much appreciated 2bozmo...

[2bozmo] 25/11/2016 09:18

En route to AGM. Will report back!

[boodgewoodge] 25/11/2016 06:19

south32 , cash positive and on the look out for coal mining assets ? hopefully our AGM is the next step to an extraordinary AGM ....

[ianio5691] 24/11/2016 12:55

Ello Ello.... Something happening..... Look at all those AT trades!

[boodgewoodge] 24/11/2016 12:23

the only other company looking out for an acquisitions of this volume of production is Wescoal and their share price has done very little today . CZA's intention and now more recently urgency , places them as the one in discussions with Keaton especially as Mr Brown declined to comment , if it was not CZA it would be water of a ducks back to brush it off ! the age old dictum ...... no news is good news !!!!

[ianio5691] 24/11/2016 11:39

Rumours are it is CZA.....



Keaton Energy in takeover talks after expressions of interest

KEATON Energy said it had received “expressions of interest from various parties” regarding the takeover of the company – an announcement that added 7% to the firm’s share price today.

Keaton Energy, which produces about two million tonnes a year (Mtpy) of coal from its Vanggatfontein mine in Mpumalanga province, is now worth R277m having doubled in value in the last 30 days.

It gave few other details except to say the interest was “non-binding” and that the firm was assessing the merits of the offers. It had said in an earlier announcement that it had entered into “discussions” that might affect its share price.

The offers come at a time when Keaton is facing the challenge of having to finance its $20m to $25m (R285m to R355m) Moabsvelden project, a proposed 1.5 to 1.6Mtpy thermal coal mine near Vanggatfontein.

The close proximity of the two mines means that Moabsvelden will benefit from shared infrastructure which Keaton Energy CEO, Mandi Glad, said was a “cut and paste”. It is envisaged that some four million tonnes a year in coal will be produced by the combined operations. The coal would be sold to Eskom and to the export market.

One possible bidder for Keaton Energy is Coal of Africa (CoAL) which has stated on several occasions that it’s in the market for acquisitions in order to provide cash flow whilst it built its own projects.

CoAL recently brought the curtain down on a A$126.4m bid for Universal Coal, which is listed in Australia, after it failed to secure a long-term coal contract with Eskom in time.

Whilst a blow to CoAL’s fortunes, Brown said in September that the firm had resolved to continue looking for corporate opportunities. “The current company focus is to obtain a cash generating asset for the group,” he said in CoAL’s September quarter report.

“This will allow the company access to sufficient funds over time to cover company overheads, pre-project development costs for the Makhado project, and all regulatory charges to ensure the continuation of full compliance on all current assets,” he said. Makhado is expected to cost several billions of rands to develop.

“The increase in thermal and hard coking coal prices over the last quarter leaves the coal industry with a positive outlook and we are committed to maximising the benefit of this market for our shareholders,” said Brown.

Brown declined to comment on Keaton’s announcement today. Shares in CoAL have, however, increased 13% taking its market capitalisation to about R1.1bn.

Keaton would provide CoAL with both cash flow and growth potential. In addition to Moabsvelden, Keaton also owns the Braakfontein project which Glad said could produce between 1.5 to 2Mtpy.

“But it is very far off in terms of development,” said Glad in an interview with Miningmx in June. “The focus is to get Moabsvelden up and running.”

[boodgewoodge] 24/11/2016 09:36

nou gaan die poppe dans !!! by when do we have to notify the market of our intentions if Keaton has already released their SENS / RNS ?

[ianio5691] 24/11/2016 09:15

Keatons earning were out yesterday. 6Month report due Monday. Figures and earning look good.

Don't believe in coincidences - this had to be a bid from CZA....

[ianio5691] 24/11/2016 09:13

Courtesy of Coalescent on LSE again....

KEATON ENERGY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
ISIN: ZAE000117420
(Registration number 2006/011090/06)
JSE code: KEH
(?Keaton Energy? or ?the company?)

Cautionary announcement - Update

Shareholders are referred to the earlier cautionary announcement released this morning on
SENS and are advised that the company has received non-binding expressions of interest
from various parties, the merits of which are being assessed by the company.

The expressions of interest relate to the possible acquisition of the entire issued share capital
of the company, which, if successfully concluded, may have a material effect on the price at
which the company?s securities trade on the JSE. Accordingly, shareholders of the company
are reminded to exercise caution when dealing in the company?s securities until a further
announcement is made.

Bryanston
24 November 2016

Sponsor
Investec Bank Limited

[2bozmo] 24/11/2016 09:08

Announcement tomorrow per chance?

[ianio5691] 24/11/2016 09:00

Posted by Coalescent on LSE....

Are they in discussions with CZA....Million$$$ question...???




KEATON ENERGY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
ISIN: ZAE000117420
(Registration number 2006/011090/06)
JSE code: KEH
(?Keaton Energy? or ?the company?)

Cautionary announcement

Shareholders are advised that the company has entered into discussions, which, if
successfully concluded, may have a material effect on the price at which the company?s
securities trade on the JSE. Accordingly, shareholders of the company are advised to
exercise caution when dealing in the company?s securities until a further announcement is
made.

Bryanston
24 November 2016

Sponsor
Investec Bank Limited

[boodgewoodge] 23/11/2016 10:23

net POTENTIAL value , does'nt help us one bloody bit . with our cash standing at present about how many months can we limp on ? the appointment of Mr Ding as a director is surely going to put a couple of crackers amongst the board ! shares for the directors now becoming performance based ..... should have been tabled at an AGM 10years earlier , bet we would be one of the top PRODUCERS today instead of still looking for funding!

[2bozmo] 23/11/2016 09:11

Boodge, I'm hoping to get to AGM on Friday. Will report back then. Check out website, profile of Makhado and Vele quite interesting. NPV value of Makhado as $544m