Coal of Africa Share Discussion Threads

[buywell2] 31/7/2014 08:35

buywell2 - 19 Jun 2013 - 09:56:01 - 9483 of 9828
All they need now is the money

MASSIVE dilution ahead

[cantrememberthis2] 31/7/2014 08:24

Seems fine - RNS as expected.

Cannot understand the walk down from 3.99 to 3.00p - typical!

Share Dilution is the biggy hence the state we are in. Hoping to get this moving, newslfow likely to be high in the next quarter.

GLA

[ianio5691] 31/7/2014 07:36

RNS Update this morning.

All seems positive with sale of Mooiplaats fairly well progressed.

Only potential cloud I can see is a cash flow shortfall next quarter, with $2m in the bank but a requirement for $4.6m...
Or am I reading them wrong?

[cantrememberthis2] 30/7/2014 09:29

I have got another email from the CEO, they have become aware of a potential 'seller', email stated ''working very diligently towards achieving our goals of ensuring the company is able to exploit the resources at its disposal''.

Still a hold for me. All commodity stocks have been hammered and will continue to be in the doldrums. Funny how QE means historically high market values yet when you scratch beneath the surface many stocks are actually trading at historical lows such as CZA.

Therefore behaviour of individual stocks are almost inverse to the market trend. I would be keen to understand which stocks / sectors are trading at historical highs because FTSE 100, 250 and MIB are high?!

GLA

[mrshaungcm] 29/7/2014 20:00

hope this works out

[bengal1] 29/7/2014 15:06

great post...many thanks.

[ianio5691] 29/7/2014 08:30

Thanks for posting, Cantrememberthis2.

[cantrememberthis2] 29/7/2014 07:56

CEO Email - Truncated

In recent times the company's share price has been a cause for concern, I can assure you that both the Board and management are seized by this issue. I want to assure you that recent price movements have no basis in fundamentals and these fluctuations are a reflection of the "market's view of the commodity market in general but also the view on long term resources in the ground in the hands of junior companies which get no recognition. In addition mining is a long cycle investment and should be viewed in that light.

I have been in regular contact with our major shareholders who understand and fully support the turnaround strategy we are with.. The top 7 shareholders who hold over 70% of the company's shares have remained constant supporters.


Without a doubt there are both macro and company specific factors affecting the company, the current commodity cycle has impacted all mining companies with the majors cutting back on capital expenditure, driving costs down as well as reassessing the assets in their portfolios, this is at the heart of our turnaround strategy at Coal of Africa. In the junior mining space this has had an even greater impact as access to regular cash flows to cover overheads while it develops its valuable assets is extremely difficult. Coal as a commodity has not escaped this trend with over supply into a weaker demand scenario as caused a sharp drop in prices and this will take time to correct. If one couples this weaker commodity cycle with the current round of major labour unrest in South Africa it is easy to understand the pressure commodity stocks find themselves under as these factors have affected the investment climate .

Coal of Africa continues to make significant progress against the turnaround strategy:
1. Strategic Investor $ 100 m – completed February 2013.
2. Reduction in overhead structure – completed July 2013, Loss making operations placed on Care and Maintenance – completed October 2013
3. Product quality confirmation at Vele - completed August 2013, Accelor Mittal successfully completed testing during December 2013
4. Disposal of non-core assets – four out of the five identified core assets either completed or subject to agreements. Mooiplaats is the only non-core asset not finalised but is subject to a formal process which is underway.
5. Makhado – work is progressing on the finalisation of the BB BEE transaction as well as the regulatory approval process. Good progress made on all aspects.
There are still issues to be resolved but these are a fraction of the issues confronting the company some 12 months ago, these include the final payment to Rio Tinto of $ 30 m and finalisation of the Take or Pay obligations – both disclosed fully in various Annual Reports and as such we are looking at ways to ensure sufficient funding is available to meet these requirements going forward. The Board of Directors are considering various options on how to fund these requirements going forward. We have a great team at Coal of Africa and I am confident that we will complete our turnaround during the course of this calendar year. The company is in much better shape and will again show a quantum leap in the next 12 montths.So despite the significant progress being made and that the re-positioning of the company is coming together it is therefore of equal disappointment that the share price has not reacted more positively. We will continue to move forward on ensuring all the fundamental building blocks are in place, so as to put the company in a position where it will be inevitable for the company's value to be appropriately reflected."

[salpara111] 25/7/2014 11:19

I have had this on my monitor for over a year but have not seen anything that would make me invest.
The real danger is that coal prices dont recover enough to restart the mines before they run out of cash.
If they do run out of cash you can be pretty certain that the chinese will buy it out and there will be no return for investors.
I keep it on my monitor, along with a small handful of struggling miners in case any of them make it back to profitability.

[ianio5691] 25/7/2014 08:30

A proper update with a gameplan and timeline is what we need....

[bengal1] 24/7/2014 17:04

Hi, thankyou...can you post the just please. Kindest Bengal

[cantrememberthis2] 24/7/2014 16:32

Email received from CEO,
I'm satisfied with the response.
no large sellers, 70% in II hands

[cantrememberthis2] 24/7/2014 11:18

Fired off 2 emails to Brown himself and the Celeste chap - doubt ill hear anything

Do we rumble a discounted placing?

MMs working this down or is this like SYQ down on sweet FA to march and ping up?

holding

[ianio5691] 24/7/2014 09:43

Jeez. Didn't think this could get any lower....

Wrong again.

About time we had some positive developments and news here.

[cantrememberthis2] 24/7/2014 07:38

Bizarre goings on

[mrshaungcm] 23/7/2014 21:17

fek me - 2p could be reality
quite a few at trades

[cantrememberthis2] 14/7/2014 10:06

Spread is annoying.

News soon hopefully to kick start a return to higher values here is me hoping

[mrshaungcm] 11/7/2014 21:26

loosing dosh here matey

its more than deary me really - oh what a fukkin mess really springs to mind

[buywell2] 11/7/2014 07:46

2.3 Billion Tonnes of potential what ?

heartache ?

soil ?

debt piles ?

[willoicc] 11/7/2014 07:32

MrShaun if you are going to make a comment please do not be so condescending.

[ianio5691] 09/7/2014 10:42

I think so.

We just need to re-start some decent production.

the Chinese will not have bought in at 25p without seeing potential somewhere......

[a2584728] 09/7/2014 10:31

Is there anyway back for this share?

[channel pirate] 08/7/2014 06:13

oggy - Historically I think the quarterlies come out at the end of the month - January, April, July and October. However by the sounds of the email I had from Investor Relations we could get info anytime over the next few months if all goes well.

The company seem to be making positive noises, and David Brown looks to have been keeping his word so far, so fingers crossed as have already been said.

[oggyrocks] 07/7/2014 16:03

Think the quarterly results are going to come out tomorrow.

Not looking forward to them.