Conti.Coal Share Discussion Threads

[empirestate] 16/1/2014 07:57

in other words the bond holders have not been satisfied with the company's presentation of their current position. doesn't say much for those on the finance side of the company. This isn't exactly a big operation so it's hard to believe the company do not have capable staff to make a clear representation of the facts, but then again, it doesn't surprise me. have written this one off so any result would be a bonus and hopefully pay for a half decent lunch.

[knigel] 16/1/2014 07:10

New RNS - next week for news then. GLA

[mrshaungcm] 16/1/2014 06:31

make or break time

[c31161] 15/1/2014 08:55

From South African Mining Weekly:

Leandi Kolver
13th January 2014
TEXT SIZE JOHANNESBURG (miningweekly.com) – Recent developments with regard to dual-listed Continental Coal's recapitalisation plans would not change JSE-listed Village Main Reef's diversification strategy, CEO Ferdi Dippenaar said on Monday, adding that Village still believed Continental's underlying assets offered good value.

Village had, in 2013, as part of its diversification strategy, acquired a 16.24% stake in the coal miner. It also had the option to increase this to 19.9%.

Continental on Monday requested the continuation of a voluntary suspension of its securities on the ASX and the Aim, saying it was continuing efforts to complete a recapitalisation that would allow it to settle its convertible notes, which would mature between November 2013 and February 2014, as well as commitments to other creditors.

Earlier this month, the company noted that its financial position had been negatively affected by the production impact of the availability of continuous miners at its Penumbra operation, in South Africa's Mpumalanga province.

"While the production will be augmented by the implementation of an additional conventional drill and blast production section, the ramp up of production from this is expected to take several months, placing additional pressure on the company's working capital requirements," the coal miner explained.

Continental Coal on Monday stated that it had made progress in its discussions with holders of convertible notes, other creditors, royalty holders and various investor groups in relation to the recapitalisation of the company, adding that it remained optimistic about reaching an agreement with all parties that would allow it to continue trading as a going concern.

Dippenaar noted that, while the current Continental corporate structure was not ideally suited for a junior coal exploration and development company, if this could be resolved as part of the recapitalisation programme, Village would see value from Continental in future.

He also pointed out that the impact of the recapitalisation, should Continental manage to achieve this, on Village's investment would depend on whether or not Village decided to follow its rights as part of the recapitalisation.

"If Village decides to follow its rights as part of the recapitalisation of Continental, we will not see our shareholding diluted; [however], if we decide not to follow our rights, our shareholding will be diluted.

"The extent [of this dilution] can only be determined once the nature and extent of the final recapitalisation package has been agreed on," he said, adding that Village would, therefore, only take a decision on how to approach Continental going forward once it had seen the recapitalisation proposal.

Meanwhile, Continental warned last week that, should no acceptable restructuring or refinancing arrangement be agreed in the near term, the appointment of a voluntary administrator to the company in Australia could be necessary, as the coal miner would have insufficient funds to meet the repayment obligations on the convertible notes and other creditors.

Dippenaar stated that, should this happen, Village would probably be treated as any other shareholder, based on the decision of the administrator, with regard to selling assets.

"Depending on what is finally realised, we would probably see some return on our investment in Continental," he said.

Continental Coal expected to be able to make a further announcement on its recapitalisation process by January 20.

Edited by: Chanel de Bruyn

[mrshaungcm] 14/1/2014 20:27

Go to previous Submit
TOPINFO 15 Feb'13 - 13:13 - 10 of 12 0 0

Still waiting for your 0.75p buy. lol. I said you would be waiting a lifetime for that. LMAO


soon be here topinfo

[c31161] 13/1/2014 22:42

JOHANNESBURG (miningweekly.com) – Recent developments with regard to dual-listed Continental Coal's recapitalisation plans would not change JSE-listed Village Main Reef's diversification strategy, CEO Ferdi Dippenaar said on Monday, adding that Village still believed Continental's underlying assets offered good value.

Village had, in 2013, as part of its diversification strategy, acquired a 16.24% stake in the coal miner. It also had the option to increase this to 19.9%.

Continental on Monday requested the continuation of a voluntary suspension of its securities on the ASX and the Aim, saying it was continuing efforts to complete a recapitalisation that would allow it to settle its convertible notes, which would mature between November 2013 and February 2014, as well as commitments to other creditors.

Earlier this month, the company noted that its financial position had been negatively affected by the production impact of the availability of continuous miners at its Penumbra operation, in South Africa's Mpumalanga province.

"While the production will be augmented by the implementation of an additional conventional drill and blast production section, the ramp up of production from this is expected to take several months, placing additional pressure on the company's working capital requirements," the coal miner explained.

Continental Coal on Monday stated that it had made progress in its discussions with holders of convertible notes, other creditors, royalty holders and various investor groups in relation to the recapitalisation of the company, adding that it remained optimistic about reaching an agreement with all parties that would allow it to continue trading as a going concern.

Dippenaar noted that, while the current Continental corporate structure was not ideally suited for a junior coal exploration and development company, if this could be resolved as part of the recapitalisation programme, Village would see value from Continental in future.

He also pointed out that the impact of the recapitalisation, should Continental manage to achieve this, on Village's investment would depend on whether or not Village decided to follow its rights as part of the recapitalisation.

"If Village decides to follow its rights as part of the recapitalisation of Continental, we will not see our shareholding diluted; [however], if we decide not to follow our rights, our shareholding will be diluted.

"The extent [of this dilution] can only be determined once the nature and extent of the final recapitalisation package has been agreed on," he said, adding that Village would, therefore, only take a decision on how to approach Continental going forward once it had seen the recapitalisation proposal.

Meanwhile, Continental warned last week that, should no acceptable restructuring or refinancing arrangement be agreed in the near term, the appointment of a voluntary administrator to the company in Australia could be necessary, as the coal miner would have insufficient funds to meet the repayment obligations on the convertible notes and other creditors.

Dippenaar stated that, should this happen, Village would probably be treated as any other shareholder, based on the decision of the administrator, with regard to selling assets.

"Depending on what is finally realised, we would probably see some return on our investment in Continental," he said.

Continental Coal expected to be able to make a further announcement on its recapitalisation process by January 20.

[c31161] 13/1/2014 20:02

apparently the implied share price is 15c and is undervalued by 650 percent according to valuecrunchers website

Implied Share Price $0.15
Market Cap 13
Net Debt 66
Enterprise Value (EV) 79
Revenue 62

Balance Sheet
Total Assets 169
Total Liabilities 135
Shareholders Equity 34

[ceepee01] 13/1/2014 18:55

Thanks c3...interesting header on Mining Weekly now...VMR comments/reaction!

[queenwood] 13/1/2014 14:21

didnt expect that a bit of goodish news :0)

[c31161] 13/1/2014 08:03

Ceepee that was the 8th of jan

[ceepee01] 13/1/2014 05:59

c3- when (ie date) was the quote to Business Day you refer to in 4409 made please?

Let's hope they are getting Penumbra fixed...and/or a water license for De Wits comes through....the latter would be excellent timing!

[mayroad2] 12/1/2014 22:56

Finger crossed - 'optimistic' of achieving a recapitalisation

[c31161] 12/1/2014 22:50

Ccc just announced continuation of trading halt and are confident of reaching an agreement

[queenwood] 12/1/2014 22:09

Australia and London listed coal junior Continental Coal, which runs 3 coal mines in South Africa, may have to be placed in voluntary administration if it cannot agree "acceptable" restructuring or refinancing arrangements with creditors "in the near term".

Trading in Continental shares was suspended on January 6 at the request of the company.

Continental had planned to list on the JSE during the last quarter of 2013 and had attracted financial backing from Bernard Swanepoel's Village Main Reef, which in May invested AUD 8 million to buy 100 million shares at AUD 0.08 per share, giving it a 16.3% stake in the company.

Village also negotiated the right to acquire further shares through to April2014, which could increase its stake in Continental to 19.9%.

Village said that the investment was part of its diversification strategy from gold and platinum.

Mr Marius Saaiman joint CEO said that "we think Continental is at an inflection point in terms of its development. (It) has a strong portfolio of projects and has demonstrated its ability to develop and operate mines."

Mr Bernard Swanepoel, Village chairman could not be reached for comment on Wednesday.

Continental flagged the financial risk in its 2013 annual report pointing out that as of June 30 current liabilities exceeded current assets by USD 26 million, included in which was USD 15 million payable to debenture holders on maturity of the of the notes in November 2013 and February 2014.

The report added that "The directors believe there are reasonable grounds to believe the group will be successful to restructure or refinance its short-term obligations. Should the expected refinance and restructuring not occur, the group may not be able to continue as a going concern."

[useless23] 12/1/2014 21:25

I hope all holders get the news they are hoping for. GLA

[queenwood] 12/1/2014 16:52

fingers and everything else crossed for tmow good luck all :0)

[c31161] 12/1/2014 12:59

Replying to e-mailed questions, Continental chief financial officer Lou van Vuuren told Business Day Continental was now trying to raise $15m-$20m in new funds and another $5m-$10m by converting debt into equity.

"We want to ensure that once this transaction has been completed, the company has a sustainable capital structure that will allow it to deliver on its next development project - De Wittekrans," he said.

"Gearing is very high, which creates additional risk for investors that already take on risk investing in the junior mining sector and then also in SA.

"Village and our other shareholders and stakeholders are engaged in this process, as well as a consortium of new investors."

Continental operates the Penumbra, Vlakvarkfontein and Ferreira mines, producing 2.2-million tons of coal a year for the export and domestic markets.

[c31161] 12/1/2014 12:52

Continental flagged the financial risk in its 2013 annual report pointing out that as of June 30 current liabilities exceeded current assets by $26m, included in which was $15m "payable to debenture holders on maturity of the of the notes in November 2013 and February 2014".

The report added that "the directors believe there are reasonable grounds to believe the group will be successful to restructure or refinance its short-term obligations.

[ohbytheway1] 12/1/2014 08:43

With the emphasis being on 'pre-arranged' to rob shareholders at the expense of a large stake holder. Happened before and will happen again. I remember losing a small amount of money in shares on a pre pack where the company was undergoing an expansion programme and recruitment drive. Pre-packs are another hazard for AIM investors to be wary of. Don't matter about the finances of the company cos the management will always find an excuse and way to do it.