UK Coal Share Discussion Threads

[the ballcock] 24/6/2012 17:59

what's goin on here boys ?

[muckshifter] 24/6/2012 11:40

Didn't anyone attend the AGM? I thought at least warbaby would have been there and given us his thoughts. Unfortunately I was unable to attend.
Anyone?
Regards.

[treble in 1999] 22/6/2012 09:47

Why would UBS add more exposure, a full 1%.
Are they a little smarter than us PI's??

[angus17] 22/6/2012 07:27

NO RNS SO CAN'T BE MUCH MORE INFO BEING DIVULGED AT THE AGM

[crosswire] 21/6/2012 18:02

As previously announced, we continue with the consultation around our proposed restructuring which will be further reported on at the AGM on 22 June.

[bigbigdave] 18/6/2012 07:21

Sunday Times............

BRITAIN's miners have been offered a slice of the country's few remaining pits under a break-up plan being thrashed out by UK Coal.

The struggling company will tell investors at the annual meeting on Friday that it is edging closer to a deal to split the mining operations from the extensive property portfolio.

Jonson Cox, chief executive and turnaround expert, was parachuted in as chief executive in November 2010 to rescue Britain's largest coalmining business.

In April, UK Coal notched up its first annual profit in four years, with pre-tax earnings of £58m. But Cox warned that the company's long-term survival could not be guaranteed without radical restructuring.

UK Coal started life in 1974 as RJB Mining, founded by Richard Budge. After the privatisation of the industry in 1994, the company grew fivefold as it acquired British Coal's core activities - including the pension liabilities.

It has wrestled with how to resolve the historic pension burden for some time. The pension deficit has ballooned to £430m, while UK Coal's market value is only £25m.

Cox wants to tackle the situation by letting the scheme take an equity stake in the company's mining business, which includes eight mines. Trustees of the scheme have been told they will also be given an interest in the future cash stream from the property arm, Harworth Estates. This would leave the property business as a stand-alone operation, shorn of the pension burden.

In return, the property arm would take on UK Coal's debts, which total £139m. The property business would need to tap investors for cash to give it the means to develop and start selling off parcels of land.

Harworth owns 30,000 acres and plans to develop 85 sites over the next 10 years.

UK Coal gave a hint of the plan in April, saying: "We hope to be able to report on the result of our negotiations at our [annual meeting] in June."

Talks with banks, pension trustees and the company's workforce are continuing. It is understood it could take another month for these negotiations to be concluded.

[mdw1] 15/6/2012 20:05

seller cleared cw; someone happy to pick up their stake.

[crosswire] 15/6/2012 16:49

UT 7.2million @ 8.35p

Not good!

[strutt12] 15/6/2012 16:40

PIRC, the corporate governance advisory consultancy, claims UK Coal non-executive director Steven Underwood is not considered independent as he is a director and representative of Peel Holdings. Goodweather Holdings Ltd, a member of Peel Holdings, currently holds 29.09 per cent of the issued share capital of the company, according to PIRC.

This, PIRC argues, means there is insufficient independence on the board. The watchdog also highlights how Underwood missed two board meetings, which he was eligible to attend, and recommends that shareholders oppose his re-election.

Shareholders are also recommended to oppose UK Coal's remuneration report. This objection is on the basis that some directors have benefited from additional awards in line with the company's restructuring plan.

In particular, PIRC identifies that the bonus limit has been raised to twice its current level to incentivise directors to further the restructure while the chairman, Jonson Cox, has been awarded performance shares "far exceeding normal company practice".

In April, the Doncaster coal mining business posted a profit for the first time in four years after its restructuring. But the business said the size of its pension deficit, the performance at Daw Mill and the level of debt in its mining business meant "much more remains to be done".

[fugwit] 14/6/2012 10:13

Interesting look at ukc on the latest diy investor website, some to the ratios for this stock that the chap highlights scream take a close look, even if there is little on ta basis to recommend ukc at the moment.

[vivgav] 14/6/2012 08:31

L&G below 3%

[apdi71] 04/6/2012 21:54

An economist explains how in the US the EPA is attacking coal power generation, by claiming it is protecting children from mercury:

[jackthecat] 31/5/2012 17:35

hvs, what do you mean by inside job pls??.

at what price is this worth a punt 3p?.

powder dry here, worth a punt soon.

[hvs] 31/5/2012 16:49

Is there NO COAL then ?

Inside job will soon be announced

[angus17] 31/5/2012 12:36

suspension soon perhaps

[strutt12] 31/5/2012 11:07

And it continues to fall :-(

[angus17] 31/5/2012 10:59

Time to look at this again Castleford Tiger.

The miners must realise that they have no option but to amend their pay and benefit packet if they want to keep working. Rights issue out of the question at this price. It's a great play stock now.

Potential multi bagger vs nothing.

[jacks13] 22/5/2012 14:09

The plan had been to develop the property assets using surplus cash spun off from the mining business. Unfortunately the mining business has been burning cash spun off from property sales.
I suspect that Jonson Cox intends, in due course, to divest the mining assets into a separately floated mining company. That is the only certain way he can insulate the property business from the debts racked up by the deep mines.

[warbaby43] 21/5/2012 12:55

What may be weighing on the share price at present is the coal price. At the end of last week last year ARA stood at $123.40 with futures indicating 2012 at $128.03, 2013 at $130.75 and 2014 at $133.20. At the end of last week, however, ARA was $87.20 with 2013 at $101.43 and 2014 at $108.05.

Throw into the equation, large over supply of US coal with production being heavily cut back and widespread suspension of mining, Colombian production surging 14.6% in Q1 and China carrying that much thermal coal that they are looking to re-export surplus stock to Japan and S. Korea. All in all a very difficult backdrop for Mr Cox's negotiations with the generators both for the restructuring and for forward supply terms.

All of which underlines again UKC's very high mining costs, £384m pre depreciation and exceptionals, over half of which are, of course, labour costs. At these coal prices and present levels of production there must be serious doubt as to whether UKC can afford its workforce. However, from looking at the Vauxhall Ellesmere Port 94% approved deal last week, it would seem that even Scousers are more realistic than miners