Coal of Africa Share Discussion Threads

[mrshaungcm] 15/12/2014 10:11

2p it is - well done whoever called this 12 mths ago

[channel pirate] 12/12/2014 08:58

Courtesy of Jantand on LSE:

CONCERNED local farmers and communities obtained a court order this week to halt portions of the work on Coal of Africa’s (CoAL’s) R4bn mine at Makhado, near Musina in Limpopo.
Four years ago, under previous management, CoAL raised the ire of environmental groups when it built the Vele coal mine at the edge of the buffer zone around the Mapungubwe heritage site. A compromise was reached in which modifications would be made to the mine and a joint committee would be set up to meet regularly with the concerned groups.
Makhado will be a large opencast thermal and coking coal mine in a water-stressed area where farming is the main activity.
The three groups granted the interdict are the Vhembe Mineral Resources Stakeholders Forum, the Makhado Action Group and the Mudimeli community.
Their attorney, Christo Reeders, said they included a large tomato farmer, a very large citrus farmer and a buffalo breeding farmer, as well as a community CoAL was intending to move to make way for the mine. He said one of the farmers’ main concerns was that studies showed the mine would deplete aquifers in a 25km radius, and they would take hundreds of years to recover.
The Vhembe forum said in a statement that CoAL did not oppose the application. CoAL CEO David Brown said the company was unaware of the action and he was investigating why no papers were served. "We will have to study the judgment and review our position," he said. Mr Reeders insisted papers were served on CoAL’s registered address in Bryanston, Johannesburg.
Mr Brown said this group had expressed opposition to Makhado during environmental consultations but had submitted their comments too late. Authorisation under the National Environmental Management Act was granted in 2013. He suspected the court action was a delaying tactic.
Mr Reeders said the objections were lodged a day before the closing date for comments but the Limpopo economic development, environment and tourism department proceeded to grant environmental authorisation for 17 activities. The court order suspends most of these, pending a review of the authorisation and a regional impact assessment by CoAL.
Mr Brown said a regional impact assessment would require CoAL to show the effects if it were to simultaneously build all four or five mines it had in the pipeline in that region, but obviously it would not build all its mines at once. CoAL had previously undertaken to participate in a regional study, but that study would require participation from other stakeholders, from industry to farmers and communities, that also intended to draw on the water resources.
CoAL recently agreed on a share placement with existing and new investors to raise up to $64.9m in two tranches to repay debt and provide funds to advance its development projects. It has not yet begun raising funds to start construction of Makhado, but said recently that it intended to do so early next year once it had secured 26% black empowerment ownership of the project.

[ianio5691] 27/11/2014 09:08

Nice to see Investec still accumulating.....

[ianio5691] 24/11/2014 10:20

looking lively this morning..... :-)

[channel pirate] 19/11/2014 16:46

JOHANNESBURG (miningweekly.com) – Triple-listed coal exploration and project development company Coal of Africa Limited (CoAL) has completed the first stage of its equity capital raising exercise.

The South Africa-focused company, which trades its shares in Sydney, London and Johannesburg, said on Thursday that it had received cash of $21.8-million for the sale of 251-million additional shares, divided according to subscription agreements on the Alternative Investment Market in London and on the JSE in Johannesburg.

CoAL CEO David Brown said the receipt of funds from the share placement’s stage-one completion would enable the company to continue its strategy of value creation.

The equity raise’s second stage, worth a further $41.5-million, is conditional on investor TMM Holdings obtaining sufficient funds to buy the second share placement.

Loss-making CoAL, which ended the 12 months to June 30 with cash of only $2.1-million, is raising close to $65-million equity, with $23-million from the disposal of its noncore Mooiplaats colliery expected to provide sufficient working capital for the next 18 months at least.

[casual47] 19/11/2014 16:39

The shares were issued some time ago so if there was a "correction" then I would have expected it to happen on the day of issue, i.e. last week the 11th

"Admission to trading on the above markets is expected to become effective on or around 11 November 2014"

In my opinion the only thing that is happening is IIs getting rid of some shares. Possibly because they want to reduce exposure to coal in general rather than anything specific to do with CZA seeing as all the bad news is already out and recently it only has been good news.

[ads_lon] 19/11/2014 16:01

These shares are being issued at a much higher price however, so the dilution should be lifting the price, not dragging it.

[digger27] 19/11/2014 15:22

Thanks channel pirate. I am in rude health and wish my finances were too but you can't have it all.
Trust you are fine as well.
I appreciate the dilution would have an effect on the share price but as someone was willing to fork out 5.5p I was hoping for something better here especially as the Chinese outfit paid substantially more a while earlier. Looks as though this could be on the right track for a turnaround just need to be patient and I think you and I have a lot of that!!!

[channel pirate] 19/11/2014 15:03

casual47,

don't think the issue price of 5.5p matters much, more the amount of shares in issue now, to the value of the company the market as seen fit to place it at now.

[ads_lon] 19/11/2014 14:51

which is, on the face of it, an improvement..

[ianio5691] 19/11/2014 14:43

We may have had some dilution, but in retrospect, we now have cash in the bank, and no immediate funding issues.

Just waiting for Vele to kick off and we will hopefully have lift off!

[casual47] 19/11/2014 14:39

Surely the issue price of 5.5p matters?

[ads_lon] 19/11/2014 14:31

Does seem a bit odd.
I've bought a fair few around the 3p mark, as I expected the price decline to reverse given all the recent news.

Perhaps the new shareholders who participated in the placing are using the low volume to pick up dribs and drabs on the cheap? or perhaps there's just no interest.

[ianio5691] 19/11/2014 13:52

Certainly disappointing market reaction to what is essentially a series of good news releases.

Would like to have seen this trading nearer to the 5.5p placement price now.

Market not convinced until the final cash is received?

[ads_lon] 19/11/2014 13:47

new lows.

good time to buy, or good money after bad?

[digger27] 19/11/2014 13:34

Something not right here. No doubt we will be the last ones to find out?

[ads_lon] 15/11/2014 17:18

Coking coal sells anywhere around $100/tonne at present. Has been as high as $300+
Big potential revenue indeed

[ianio5691] 14/11/2014 15:57

This is going to be huge when we go back into production.......

Just need some clarity on the timeline now, but what a great opportunity to get in at.

[ianio5691] 14/11/2014 15:56

JOHANNESBURG (miningweekly.com) – Triple-listed coal exploration and project development company Coal of Africa Limited (CoAL) has completed the first stage of its equity capital raising exercise.

The South Africa-focused company, which trades its shares in Sydney, London and Johannesburg, said on Thursday that it had received cash of $21.8-million for the sale of 251-million additional shares, divided according to subscription agreements on the Alternative Investment Market in London and on the JSE in Johannesburg.

CoAL CEO David Brown said the receipt of funds from the share placement’s stage-one completion would enable the company to continue its strategy of value creation.

The equity raise’s second stage, worth a further $41.5-million, is conditional on investor TMM Holdings obtaining sufficient funds to buy the second share placement.

Loss-making CoAL, which ended the 12 months to June 30 with cash of only $2.1-million, is raising close to $65-million equity, with $23-million from the disposal of its noncore Mooiplaats colliery expected to provide sufficient working capital for the next 18 months at least.

In an interview with Mining Weekly Online last month, Brown outlined plans to produce at a rate of nearly seven-million tons of saleable coal a year, more than five-million tons of it being import-substituting price-premium hard coking coal used in steelmaking.

CoAL plans to produce semi-soft coking coal and thermal coal from its brownfield Vele project in the short term, and both hard coking coal and thermal coal from its Makhado project and Greater Soutpansberg projects in the medium term and the long term.

Brown said that the company could play a pivotal role in lowering the cost of inputs into local steel production, which is poised to be expanded through the signing of a memorandum of understanding by Hebei Iron and Steel Group of China and South Africa’s State-owned Industrial Development Corporation for the development of new steelmaking capacity in Limpopo province, where CoAL, which is itself backed by Hong Kong-based Chinese company Haohua Energy International Resources, has its projects.

Steelmaker ArcelorMittal South Africa and State electricity utility Eskom have both approved the quality of the coals to be supplied.

Soutpansberg is said to host more than 90% of South Africa’s accessible hard coking coal resources and about 10% of total remaining domestic resources.

The 26-month construction of the $400-million Makhado plant is scheduled to begin in 2016 to allow production in 2018/19, with the proposed Hebei steel plant giving CoAL the potential benefit of having an anchor customer close to its mines.

Equity capital will fund the $23-million plant modification at the dual-product, 50-year Vele, which is expected to ramp up to 2.7-million tons of run-of-mine coal a year from the third quarter of next year.

An incoming strategic partner will hold 20% to 23% of the shares of the Makhado project, where CoAL will retain majority ownership in a part debt structure, and its black economic-empowerment (BEE) shareholder 26%.

While 6% of the BEE holding will be available as an employee share ownership plan, the percentage may also be used to create black industrialists in line with government aims.

The proposed 16-year, opencast Makhado mine is being designed to produce 2.3-million tons of hard coking coal a year and 3.2-million tons of thermal coal a year.

Mooiplaats acquirer Blackspear Holdings Proprietary is expected to pay CoAL for the colliery by the end of November, with the Mooiplaats divestment completed by the end of February.

The Mooiplaats sale forms part of CoAL’s five-point turnaround strategy implemented a year ago, which included the disposal of the Woestalleen colliery, near Ermelo, the Mpumalanga-based Opgoedenhoop mining right, coal explorer Lemur Resources and the Holfontein project, in the Witbank coalfield.

Front-end work on the Vele plant modification project is being engineered by project house Sedgman and the Makhado project has received environmental authorisation under National Environmental Management Act and the environmental-impact assessment (EIA) regulations from the Limpopo provincial government.

In the 12 months to June 30, CoAL repaid the remaining $12.5-million of its bank facility from Deutsche Bank and secured a $21.4-million, 18-month credit facility from Investec Bank, and legacy issues that have plagued its ability to create value for the last few years have been removed.

Shareholders voted overwhelmingly in favour of an equity placement of up to $64.9-million.

CoAL has finalised the public participation for EIA phases for the Generaal, Chapudi and Mopane projects, which form part of the long-term greenfield Greater Soutpansberg project

[digger27] 14/11/2014 11:59

You would think this is a no brainer but the market just doesn't see it. Paying for past mistakes I reckon.

[ianio5691] 13/11/2014 13:23

Cash in the bank. 5.5p investment paid. Strategic plan in place and underway...

Why are we not higher?

No brainer.