Citius Resources Share Discussion Threads

[semper vigilans] 01/5/2013 10:23

So as I see it, (please correct if I am wrong), Coalfield Resources are 24.9 % shareholders in Harworth Estates Property Group Ltd., with the old UK Coal Pension fund owning the balance and controlling Harworth.

Does this mean that effectively the only potential purchaser of CR would be the pension fund, because there is no point in Peel buying the rest of CR ?

The only exception would be if Peel/a.n.other took over Haworth.

[jeffian] 01/5/2013 10:20

My concern here is this. (I hold, btw). I was always rather surprised that they 'got away with' splitting the company's property assets from its mining business as the property assets were always likely to be the principal asset to back the pension fund liabilities. I was amazed (but happy!) that the Pension Fund Trustees were prepared to accept 100% of the liabilities in exchange for less than 100% of the assets. It was bad luck that the Daw Mill fire brought the problem into focus within weeks of the deal whereas they probably expected the mines to stagger on for years before finally running out of money but (and here's my problem) if the mining side goes into liquidation, I believe there may be circumstances in which the Liquidator could unscramble the deal if he thought the intention was to 'shelter' the assets which he could otherwise have claimed to help settle liabilities. Any lawyers out there care to comment?

[ivancampo] 01/5/2013 09:41

Can only be good news for shareholders here. Obviously more uncertainty for miners.

[dazzaa] 01/5/2013 09:21

* Coalfield Resources – FY. The Company's only active investment is in Harworth Estates Property Group Ltd ("Harworth Estates"). It also retains a residual holding in UK Coal Mine Holdings Ltd. The Company has a 24.9 per cent stake in Harworth Estates which has a book value of GBP50.3m. The Harworth Estates portfolio had an asset value of GBP260.1m at 29 December 2012. Mine Holdings took over the full pension liabilities of the former Group as part of the restructuring. As such the Company does not expect any economic return from this investment. The industry-wide pension funds have a first call on cash generated by the mines to repay the pension deficit, and as such the Company values its holding at a nominal GBP1. Following the restructuring on 10 December 2012, Coalfield Resources plc no longer has operational responsibilities but is an active investor in Harworth Estates. The Company also holds a residual minority investment in Mine Holdings. The restructuring effectively separates the Company and Harworth Estates from any liabilities associated with the defined benefits pension schemes. Harworth Estates continues to perform well. The major fire, and subsequent closure of Daw Mill Colliery in Warwickshire, has had a material impact on the mining business. The fire has also led to a potential short term funding requirement for the Company as Mine Holdings resolves its issues following the closure of Daw Mill. In these circumstances, the Company has sought to obtain a facility, secured against its shareholding in Harworth Estates, from its bankers. It is expected that this facility will be repaid through an equity fundraising during 2013.



U.K. Coal Operations seeks liquidation after colliery's closure: U.K. Coal Operations, the company that runs two of last three deep pits in Britain, has warned that it is in danger of falling into insolvency – putting 2,000 jobs, and the value of 6,800 workers' pensions, at risk.

Simples

[castleford tiger] 01/5/2013 08:43

I have read the accounts and still don't understand the set up here.


who owns what?

Is there value?

Until I fully understand the above I cannot read it.

A simple flow chart please?

cheers tiger

[dazzaa] 01/5/2013 08:36

I wish someone would post the article

[ivancampo] 01/5/2013 07:24

FT reporting voluntary liquidation of mining side.

[erniemadoff] 01/5/2013 01:15

Not yet :-)

[dazzaa] 30/4/2013 22:02

Ernie. Are you there?

[the troll] 30/4/2013 17:38

wot ! no cash ? how are they supposed to eat & support family ?

[semper vigilans] 30/4/2013 16:26

Only pay 'management' in shares and in arrears.

[loafofbread] 30/4/2013 14:27

Get rid of Cox and costs will be down to £1M a year.

Great value.

[strutt12] 30/4/2013 12:00

There is no shareholder value for Coalfield Resources in its holding in Mine Holdings, although Mine Holdings remain liable to pay the Company's running costs of up to GBP3m pa and outstanding debts for the restructure of GBP3.6m.

[jeffian] 30/4/2013 10:18

Why should CRES have any significant running costs going forward? It is simply a holding company for investments in Harworth Estates and the Mines. Presumably Harworth and Mines now carry there own administrative costs, so what 'administration' is left to CRES?

[strutt12] 30/4/2013 09:49

Running costs, so for as long as the business is running

[ivancampo] 30/4/2013 09:31

3m pa, they say reduced to half = 1.5m.

For how many years?

[strutt12] 30/4/2013 09:21

You need to take into account the £3m p.a running costs liability, and with no revenue where is that money going to come from??

[ivancampo] 30/4/2013 09:05

Why do they (potentially) need to raise money, £30m+ in bank and need to raise £5-10m. Is it not a way for Peel to increase their holding? I.e They would provide the additional cash without going to the market....


Capped less than 4m NAV £50m?????

Agree with LOB, could be 12p easily.

And, Directors should be buying.

[loafofbread] 30/4/2013 08:59

Well that was a long read!

A couple of million in potential hits but no change on asset value that can only increase going forward.

18p+ of assets for 4.5p?

Amazing value.

[ivancampo] 29/4/2013 17:57

Results tomorrow as per website.

[fugwit] 18/4/2013 18:21

Scharescope have prelims on 26th but unconfirmed, they aren't brilliant with their dates I am learning.

[greatwhitefunkmaster] 18/4/2013 13:41

IG Index show the following

Preliminary 2012 Coalfield Resources PLC Earnings Release 19th April

[greatwhitefunkmaster] 16/4/2013 15:29

Rising in recognition of Maggie's funeral tomorrow?

[ivancampo] 16/4/2013 10:32

Yes, results soon to offer more transparency and a narrowing to NAV

[greatwhitefunkmaster] 16/4/2013 10:30

Nice to see that someone is keen to pay 0.35p above offer for 80k shares. All MMs seem to be buyers of the stock for the first time in a little while.