UK Coal Share Discussion Threads

[strongbuy] 11/9/2012 20:48

i'm in, this one is going to shoot up and i have got myself a tidy 2million shares at 7.75p !!

[the troll] 11/9/2012 13:40

UKC's ACTUAL pension-fund deficit ( ie, what they'd have to pay a bulk-annuity insurer to offload it ) is 'c £430m' - see interims RNS of 10th August under 'RESTRUCTURING' @ para 1; £161m's some 'hogwash' figure used for accounting & reporting purposes ONLY & IMHO, it's dangerously misleading.
extreme care needed here; the PF regulator & Co Trustees ruthlessly forced DWSN into administration ( last month ) over a deficit the Co 'thought' it could manage out.

[petersmith6] 11/9/2012 11:20

most likley outcome it that some one will make bid to pick up the land and the buildings on the cheap. most wouldnt turn down a 15-20p offer.

[vivgav] 11/9/2012 11:11

Shorters running for cover?

[ihavenoclue] 11/9/2012 10:01

You can currently SELL at 0.5p higher than the SP

[castleford tiger] 11/9/2012 09:44

I see NO good news in that statement.

Shareholders may well be wiped out here.

If was a holder i would be taking the 80% uplift and running for the hills.

Pdyor

Tiger

[mozy123] 10/9/2012 23:43

I could be wrong, im looking to research this company. I would like to be.

[mozy123] 10/9/2012 23:42

Nothing in particular Beeks! High debt, high pension deficit, and not being able to turn a profit on a £450mil quid revenue. All signs that some are paid too high i would say.

[beeks of arabia] 10/9/2012 22:18

Could you explain that comment Mozy?

[mozy123] 10/9/2012 21:56

Its a shame what Unions and Employee's do to companies.

[strongbuy] 10/9/2012 20:02

imho the property and land is worth 1bn to seriously undervalued i think

[jackthecat] 10/9/2012 19:18

still hugely under water with debt and pensions!!.

be careful here

[vivgav] 10/9/2012 17:50

Probably WELL over cooked of late and an OK RNS today?

[akaaur] 10/9/2012 17:36

one question why has this risen

[ihavenoclue] 10/9/2012 16:15

LOL They tried a little shake but it was still 6.88p to buy a small amount after the drop

[vivgav] 10/9/2012 15:51

Looks like it!

[sos100] 10/9/2012 15:48

could this be back to 10p tomorrow?

[jeffian] 10/9/2012 15:25

£3000 X 30,000 acres = £90m

Pension liability - £161m
Net Debt - £138m

What sums is it you want us to do, fred?

(I hold, btw, but if I didn't I'm not sure I'd be convinced by your rationale!)

[freddie ferret] 10/9/2012 14:47

Lot of land. Farming land £3000 an acre min. 30,000 acres do the sums.

[vivgav] 10/9/2012 12:42

RNS Number : 8941L

UK Coal PLC

10 September 2012

10 September 2012

UK COAL PLC

("UK COAL")

Performance update

Following the Company's announcement on 22(nd) June 2012 about the potential disposal of the Group's interest in the Harworth Power generation business, the Company expects shortly to issue the circular, which is required to obtain the approval of shareholders.

UK Coal also announces that Doncaster Borough Council has resolved to grant planning consent for 1200 new homes on Harworth Estates' Rossington Colliery site. Work is due to commence as soon as the new airport to M18 link road opens in 2014. This project is set to be a significant development for the region.

The Company continues to make progress putting into effect the Heads of Terms for the proposed restructuring outlined in our Interim Statement on 10 August 2012. We are now in the process of drawing up detailed implementation documentation and approvals. The Board believes it to be necessary to conclude the restructuring work in the period to the end of December 2012 and expects to do so.

In relation to the mining business, following the recovery of Daw Mill's 32s panel, the mine has been able to recommence mining operations on this panel although at lower than expected production levels. The difficult geological conditions experienced on both 32s and the 303s panels, coupled with the difficulty of operating two coal faces in this mine, have led the Board to decide that the safest option is to concentrate current mining operations on 303s panel, which will also mitigate the loss of production. 32s panel will be put into safe salvage as soon as practicable. This will enable more consistent production in 2012 but is likely to add four weeks to an expected interruption to production in 2013 between the end of the 303 and the start of the 33s panel.

- END -

[jackthecat] 29/8/2012 22:28

To the last two posters...Apologies, my mistake, due to my lack of research.


you are both entirely correct!!.

Thanks again and good luck.

Regards, your ginger and white farm cat!!

[jacks13] 29/8/2012 20:31

'As part of the proposed plan to address the deficit, it is intended that the Pension Trustees will also invest £30m in the property business to enable the release of the latent undeveloped value in the property portfolio. In exchange, the Pension Trustees will receive a direct stake of 75.1% in that business, with existing shareholders being entitled to the benefit of the remaining 24.9%. This stake would be held through a new holding company which would not guarantee the pension liability. In return for the stake, the first £5m of shareholders' dividend income would be paid to the Pension Funds. The terms of the proposed restructuring could mean that shareholders' principal continuing economic interest in the Group will be a minority stake in the long term development potential of its property assets. The Company made strenuous attempts to secure an option for shareholders to subscribe part of the new equity, but the primary condition of the Pension Funds was to have a controlling shareholding in a separated property business.'

The deal has yet to be agreed. If it is then the company continues for the time being, maybe even thrives, but what share price equates to a 24.9% stake in the property business? The majority owners (the Pension Funds) are unlikely to pay a dividend to the minority holders so what are the prospects for a decent capital gain? Might the majority holders create fresh equity when the property portfolio improves, in exchange for fresh funds, further diluting the minority holders?

jackthecat - I've no quibble with Jonson Cox or the present Board, the fault lies with the previous regime. Cox is doing the best he can in the circumstances.