Coal of Africa Share Discussion Threads

[1kiwi] 02/7/2017 11:30

I think this will re rate soon and people will get caught out as they did with BZM and a few others with not much free float

[1kiwi] 02/7/2017 11:27

76.91% held by II's


Shareholder Units held % of Issued Capital
1 M&G INVESTMENT MANAGEMENT LTD. 472,501,831 18.48%
2 HAOHUA ENERGY INTERNATIONAL (HONG KONG) RESOURCE CO., LTD 462,417,579 18.09%
3 YISHUN BRIGHTRISE INVESTMENT PTE LIMITED 428,269,242 16.75%
4 SUMMER TREES PTE LIMITED 257,884,615 10.09%
5 TMM HOLDINGS (PTY) LTD. 215,000,000 8.41%
6 INVESTEC LIMITED 130,189,330 5.09%

[allend47] 02/7/2017 10:28

Hope you are right, I have been on here since £2 a share, but have traded down

[boodgewoodge] 02/7/2017 10:01

With the share dilution behind us now and the cash settlement settled, PAN picking up their shares at 47c JSE equivalent, CZA a producer, there just has to be some confidence demonstrated in the company and its management coming through in the share price

[boodgewoodge] 01/7/2017 09:33

seems like this is really a long term project , especially if the sale of Mooiplaats and the surface rights finalization are supposed to be what we a basing a recovery of the share price on , as for a take over i don't recall ever that anyone has shown any interest in us ! surely we should be choosing our acquisition , given the time that we take , with more insight !

[2bozmo] 01/7/2017 08:54

I was bemoaning that fact to DB earlier this week. I suggested we might become a takeover target if the share price stayed down here. He said this was a distinct possibility - previously he had always suggested otherwise. Maybe the acquisition of Uitkomst wasn't a big enough acquisition? Hopefully we can secure the surface rights, and the hope is we can sell Mooiplaats soon.

[boodgewoodge] 01/7/2017 07:26

2bozmo , any idea of what is keeping the share price in this narrow depressed trading band given all the hurdles that have been overcome and Uitkomst in our stable now with an acceptable supply of coal agreement ?

[boodgewoodge] 23/6/2017 06:34

last couple of days of being a non producer ..... should see a definite up turn going forward ( seriously how much more downside can there be ! )

[boodgewoodge] 20/6/2017 10:29

well on the way to the equivalent on the JSE , seems like this acquisition can produce just sufficient amount of coal to keep the boards jetmasters running for a while !!! really clever minds in charge of this company to say the least

[channel pirate] 20/6/2017 08:35

Looks like it Boodge, see we have been re-rated to 2.99p Buy - 2.75p Sell.

C'mon Mr Brown - don't announce another acquisition and get us down under 2p !!!!!!!!!!!!

[boodgewoodge] 19/6/2017 06:16

with the acquisition of Uitkomst successfully concluded would that qualify us to be re rated ?

[mjcferguson] 15/6/2017 19:16

Thanks for the feedback,encouraging.

[boodgewoodge] 15/6/2017 16:02

really appreciated 2bozmo , brings a huge amount of clarity , just that time frame just seems to be going on and on .... lets see what being a producer brings

[digger2779] 15/6/2017 14:44

Thanks for the feedback.

[channel pirate] 15/6/2017 12:02

2bozmo

many thanks for your feed back, and it's much appreciated

[2bozmo] 15/6/2017 11:38

The following of my Notes of Meeting 15-June and in no specific order. Feel free to ask anything as happy to expand where I can. I got the opportunity to speak with David Brown 20 mins before meeting started and he gave a general update after the main business.

In attendance: Bernard Pryor, David Brown plus 2 shareholders + 2 others who signed in (shareholders/ analysts?)

All motions were passed, with everything being in place the deal will be completed over the next few days and we will officially be a producer going into the new fiscal year in July!!

DB seemed very happy with the way everything is progressing. The government want the project to go ahead and he has particularly good relationship with the water and environmental agencies. He's particularly pleased with the agreement with the IDC, something that they have hoped to achieve for over the last 6 years.

They hope to acquire the outstanding farm land over the next 4-6 months. They have made one final offer for the remaining land which the owners have 7 days to accept otherwise the expropriation process will begin. They don't anticipate any issues with that or finalising the surface rights. He described this as a momentous step. They continue to push the government to get things done, and DB certainly knows everyone that he needs to.

DB has been in London since Tuesday and he had visited 6 analysts. He thinks Makhado might need to start producing before they get further coverage, but progress has been well received and people are starting to take notice. He often gives an analogy of a swan swimming gracefully on the water, but below the surface there’s a huge amount going on. Now, that action is beginning to reap some rewards,

With regards to Makhado, ArchelorMittal has signed a letter of intent to take some production (60%). The coal has been tested and is of very good quality (as we already know). He spoke enthusiastically about a Makhado Lite project that will involve one-third of the CAPEX and a shorter construction period. This will be presented to the board in September. If this version goes ahead then they will start construction in 2018 H2 with first coal produced in 2019 Q3. He thought this might be the better option as some shareholders thought unrealistic given current CAPEX numbers relative to the current share valuation, and some of the 3.2m tonnes/year of product would need to be exported. Board are currently happy as the price of coal is currently above the long-term rate used in their analysis.

Vele: still deciding what to do. Given its location, he suggested it might be sold to reduce overheads and put money in the bank as opposed to mining it themselves which was previously suggested. The deciding factor will be the price and coal, as to whether this is sold or mined themselves.

Mooiplaats: they have 4 interested parties, one being someone who's currently producing. They are hopeful of finalising commercial discussions by the end of July. They are having to be creative in its disposal and may have to be a partner in a deal, or have the monies over a period of time rather than an upfront payment. He's frustrated by fact not been sold yet.

They are looking for another similar sized acquisition. He suggested cash from sale of Mooiplaats and Vele could fund a similar sized CGA as Uitkomst will only generate income to cover 40% of current operating costs. They are very pleased with the Uitkomst deal, not the same as UC but a very good fit. They would be happy to reduce ongoing care and maintenance expenditure through disposal of Mooiplaats and Vele. Other costs have been reduced with various initiatives.

Makhado Lite will reduce the need for expenditure and thus may not need the monies from MOU with Hengshun. Open to debate. For the rest of the funding, on the BBBEE side, no issue with the IDC (6%) and their local investor (20%). They will make up the 30% that is required with the change to 30% being announced today in the new mining charter in South Africa today.

Rio debt is paid today and only debt on balance sheet is from IDC. They were very pleased to have all the legacy issues sorted, Rio have been watching they like a hawk. They now have $10m in cash and $9m they can draw down from the IDC loan if don't sell Mooiplaats over next 6 months.

So all in all, I left the meeting with a very positive vibe and enthused about the prospects for CoAL. I’ve been to a number of these meetings and DB was certainly the most enthused he’s been. The legacy issues have been sorted and we are now in a good position footing both financially and strategically. I’m in no doubt that the management is doing a good job and will get us over the finish line. There was definitely a sense of achievement of the progress we’ve made and a level of excitement over Makhado Lite. It’s been a bumpy journey but to me, this should represent the turning point. Onwards and upwards.

[boodgewoodge] 15/6/2017 06:12

1. Mooiplaats is taking really too long to dispose of
2. the second acquisition , a real IGA or another " keep afloat acquisition"
3 come on now lets get this share price moving !!!

[2bozmo] 14/6/2017 14:34

I'm hoping to attend the meeting tomorrow. Let me know if any specific questions you want asking

[boodgewoodge] 09/6/2017 13:41

or is Uitkomst producing a sub optimal volume and is just an income producer , bear in mind in relation to Keaton's price paid for by Wescoal , if my memory serves me well , there is not much of a price difference and don't even try to fathom the advantages of Keaton over Uitkomst

[2bozmo] 09/6/2017 13:06

Feels like one seller out there. Annoying

[channel pirate] 09/6/2017 12:55

Yes the market still not keen on accumulating shares but are quite happy to sell at just over mid price. Current share price showing 3.74p to buy / 3.00 to sell Tried a dummy buy / sell for 25,000 shares got figures of 3.39p to buy and 3.02p to sell.

[ianio5691] 09/6/2017 12:33

Don't think the market believes that all is resolved. We need clear confirmation on all outstanding fronts.

Lack of clarity, and more importantly now, a lack of trust.

Until we get clear, concise confirmation of various issues and positions - I don't think we are going anywhere.

[boodgewoodge] 09/6/2017 12:23

2bozmo ,thanks for clearing that episode up , with all the pieces coming together and ( i agree) ' the flurry of overdue good news " why the hell are we still languishing , range bound , just bloody stuck at these pitiful levels ? !

[2bozmo] 09/6/2017 12:05

Boodge, the company has replied to the Zoutnet article you mentioned last week:

hxxps://www.zoutpansberger.co.za/articles/news/42518/2017-06-09/coal-sets-the-record-straight-on-lifting-of-suspension

Coal of Africa Limited (CoAL) reacted strongly to an article that appeared in last week’s edition of Zoutpansberger, stating that the article was factually incorrect and thereby brought into question CoAL’s integrity.

In a statement issued by Ms Florence Duval, CoAL’s group corporate affairs manager, she points out that the article demonstrates a lack of understanding of the regulatory framework in which mining companies operate. The article appeared under the heading “Lifted suspension does not give green light” and drew from two sets of information. The one was a press release from CoAL announcing that the Minister of Water and Sanitation, Nomvula Mokonyane, had lifted the suspension on the mining company’s integrated water-use licence for their open-cast Makhado mining project. CoAL stated that the lifting of the suspension meant that they could commence with the development of the Makhado Project. The other source of information was the response of the Vhembe Mineral Resources Stakeholders Forum (VMRF). The VMRSF’s legal representative, Mr Christo Reeders, stated that CoAL forgot to mention that an appeal that was filed against the project’s mining right was still pending, thus they could not continue with development.

In this regard, Duval stated several facts in relation to the announcement of CoAL's readiness to commence with the Makhado Project. “In May 2015, the Department of Mineral Resources (DMR) issued a New Order Mining Right (NOMR) to CoAL, which was subsequently transferred through a Section 11 to Baobab Mining and Exploration (PTY) Ltd, the operating entity for the Makhado Project. The NOMR was appealed by the Kuvule Community, and the VMRSF. The DMR dismissed the Kuvule appeal, but has not yet ruled on the VMRSF appeal, due to a supplementing of this based on reasons mentioned in your article. The Section 96(2)(a) of MPRDA as amended states that 'an appeal in terms of subsection (1) does not suspend the administrative decision, unless it is suspended by the Director-General or the Minister, as the case may be.' The NOMR is therefore valid and fully executable,” said Duval.

Duval also referred to the Integrated Water Use Licence. “As reported in the announcement of 29 May 2017, the lifting of the suspension of the IWUL by the Minister of Water and Sanitation renders the licence executable,” said Duval.

With regard to the Environmental Authorisation (EA), Duval referred to the 25 July 2016 announcement that the DMR and the Limpopo Department of Economic Development, Environment and Tourism (LEDET) had amended the EA, changing the holder of the EA from CoAL to Baobab, and extending the validity of the licence for a further five years. “The VMRSF appealed this decision, which was dismissed by the Minister of Environmental Affairs in November 2016. This was also announced on 2 November 2016. The EA is therefore fully executable. The Makhado Project is thus fully authorised, in that it has three fully executable licences, the NOMR, the IWUL and the EA. CoAL is in the process of securing the outstanding surface rights and raising the capital required for the project,” states Duval.