retirementfund
30 Nov 2017
37 cents WTH
retirementfund
25 Oct 2017
I'm looking forward to 1st quarter's results due 31 October. And, if I remember rightly, $1.8m coming off future overheads due to sale of Mooiplats
The buzz
17 Oct 2017
Re: S African Thermal Coal Price I came across this recent report from an Australian coal miner that gives a good description of the current coal market, There are statements on both pricing and outlook. This is the statement on outlook:-[link] OUTLOOKThermal coal prices during the September quarter were stronger than many analysts forecast and current spot and forward prices also remain well above consensus forecasts. Several factors have combined to keep the thermal coal market tight. The higher quality end of the thermal coal market is experiencing stronger demand as a number of key seaborne end users are changing their quality requirements due to a greater focus on environmental and generation efficiency. Whilst in China, the coal burn for electricity generation is up 8% YOY, due to hydro electricity supply constraints and strength of underlying electricity demand. These factors have led to a larger than expected draw on the seaborne market.On the supply side, rolling industrial activity in Australia combined with weather impacts earlier in the year have limited exports. Indonesia was also impacted by wet weather which constrained exports. With the two largest seaborne thermal coal exporters unable to respond to the strong demand, coal prices have risen across the board.This background underpins a positive outlook for thermal coal demand and prices over the next year. Hard coking coal prices have also traded above expectations in recent months however this situation may change in the short term if steel production in China is cut during the winter months, as some commentators have suggested. The flow on is likely to be less draw on the seaborne market and moderating prices for metallurgical coals over the next six to twelve months. The relative strength in the thermal coal prices has seen a continuation of the poor pricing relativity between SSCC and thermal coal which has limited the incentive for producers, including Whitehaven, to switch to incremental volumes into SSCC."SSCC is semi soft coking coal - less valuable than hard coking coal.The B
The buzz
17 Oct 2017
S African Thermal Coal Price [link] price seems to have been over $90t for quite a while now, and if anything recent price moves have been up. These prices seem good to me and bodes well for some good profit margins from CZA's coal mines. Not sure if the market is awake to this?The B
nat-king-coal
12 Oct 2017
Bit of old news At the end of September, Coal of Africa Ltd. (CoAL) sold the Mooiplaats Colliery to a consortium of investors, known as MCH, for R179.9 million ($13.2 million). MCH members include young black professionals, future Mooiplaats Colliery employees, communities, To The Point Growth Specialists Proprietary Ltd. and experienced coal mining executives, including Don Turvey. The consortium is funded by the newly established Last Mile Fund created by Africa Rainbow Capital, Bernard Swanepoel, Sipho Nkosi and Clinton Halsey, and MCH’s structure is compliant with the proposed requirements of the currently suspended third version of the South African Mining Charter.“The sale of the Mooiplaats Colliery is the final step in the company’s balance sheet restructuring strategy setting the course for CoAL to become a self-sufficient midtier coal mining company,” said David Brown, CEO of CoAL. “The disposal will yield annual operational cost savings of approximately $1.4 million and the [the proceeds of the sale] will be used to settle Ferret, our Mooiplaats Black Economic Empowerment partner, funding for further development of the flagship Makhado project or the potential acquisition of a cash generating asset. The sale also frees up valuable in-house human resources, facilitating additional focus on Makhado, ensuring the asset can be brought to production optimally.”The Mooiplaats Colliery is a thermal coal colliery situated in the Ermelo coalfields, adjacent to the recommissioned Camden Power Station operated by state power utility Eskom. The underground Mooiplaats Colliery was developed by CoAL from an abandoned box-cut in early 2008 with the first coal extracted in third quarter of 2009. Mining was undertaken by a contract miner until June 2011 and, following an operational assessment, CoAL retained the existing workforce and equipment, and commenced operating the mine. The reduction in global thermal coal prices from 2013 and rapidly increasing logistics costs resulted in the Mooiplaats Colliery being placed under care and maintenance in October 2013, and this status continues to present day.[link]
34DegSouth
06 Oct 2017
Re: Rh apologies - obviously posted re. the wrong share - pls ignore
34DegSouth
06 Oct 2017
Rh & Pd Prices on the Rise, Pt to Follow? Both Rhodium and Paladium have experienced sharp price increases this last year - Rh up from $620/oz to now over $1100/oz this last year - was a WHOPPING $10,000/oz in Jun'2008!! - Pd now double its price in last two yearsThese Price rises are GREAT news for Jubilee, as both are pushing the PGM basket price higherAt DCM, Jubilee produce 1 part Pd per 2.8 parts Pt, so this rapid surge in the Pd price is great for JubileeDoes anyone know what the ratio is re. Pt to Rh that Jubilee produces - I'm guessing 1 to say, 7 or 10. If its say 1:7, then a Rh price surge to $3000/oz (possible), would be the equivalent of a Pt price rising from $910 to $1140/oz, from a Jubilee profit/bottom-line perspective!!!Could Platinum start to surge as well??
retirementfund
03 Oct 2017
the question is, if we get taken out, what is a fair price?
2bozmo
02 Oct 2017
Re: Excellent News (see today's RNS) Surprisingly quiet on here (not necessarily a bad thing tho), and highest volume in London since 30 November 2016. David Brown is producing the goods here. They've achieved a fantastic amount over the last nine months and it definitely feels like the strategy is coming together: 1. Rio Tinto resolution2. sale of Mooiplaats (last of the legacy issues resolved)3. IDC funding4. Uitkomst acquisition5. rework of the Makhado Lite . The next 6 to 12 months is exciting too:1. Finalisation of the surface rights for Makhado. 2. Marketing/off take agreements3. Funding for Makhado4. Acquisition of a second cash generator5. Vele - to sell or or mine Personally think someone will take us out before we mine Makhado.
HPC Follower
02 Oct 2017
Excellent News (see today's RNS) Sale of Mooiplaats - terms and planned money usage looks great to me for the future of CZA...
hedger123
27 Sep 2017
Re: Uitkomst Buzz - i think what they're saying is the $4.6m refers to the current assets over current liabilities of Uitkomst from the acquisition is $4.6m so that is a positive cash flow that will now appear on our balance sheet. We have an update on Friday so hopefully get more information then
The buzz
26 Sep 2017
Uitkomst I have been trying to work out the significance of the resources statement today. I very soon started to lose the plot in terms of how much coal they have that can be processed and sold. My best stab is as follows. Taking what I assume is the most pessimistic number of 4.2Mt of proven saleable coal. The average production is 0.045MT per month yielding 0.03MT of saleable coal. ie A minimum mine life of about 8 years and an annual production of about 0.36Mt.Incidentally 6 months production should generate 6*0.045Mt=0.27MT. However, the reported production over the last 6 months was much higher at 0.37Mt presumably yielding about 0.25Mt of saleable product.The product seems to be "high grade export quality thermal coal deposit with metallurgical applications". Taking it as thermal coal then the price is about $90t.[link] it were coking coal it would be twice that price. Keeping things simple, assume $100mt gives a cash return of about $25m over the last 6 months. There must be a good profit margin as the mine was in production at lower prices. CZA say that they had cash of $4.6m in June, but I feel that was a bit of a red herring. So with what seemed to me to be a very positive statement I was hoping to see a price rise at the market opening. No change and even now (08:48) there has only been one transaction on the LSE that ironically was a 86k sale at 2.3p.The B
2bozmo
13 Sep 2017
Re: Weakness in Share Price? Spoke to company - no reason for the decline. They are very excited about Makhado Lite that will be disseminated to the market at the end of this month. Hopefully we'll hear about Mooiplaats sale and hear of potential new acquisition. Again they hope Mooiplaats will be concluded in SeptemberBut coal prices are flying and no reason why down here.
HPC Follower
12 Sep 2017
Re: Weakness in Share Price? CoAL is a) still negotiating terms for a successful sale of the Mooiplaats Colliery and b) still waiting for the grant of an IWUL by the DWS, which is the final approval required to complete the regulatory approvals process for the stream diversion in respect of the Plant Modification Project for the Vele Colliery ahead of readiness for production.These are taking quite a long, indeterminate time to progress... plus loans are now being used from IDC where the interest rate is very high to me (16%) and warrants are also being given out too.If this all comes together and all the retained mines produce coal which is sold at reasonable prices, CZA shareholders should do reasonably well - but probably not as well as IDC.
The buzz
12 Sep 2017
Weakness in Share Price? I am a bit puzzled why CZA has had its share price slip to 2.33-2.5p when the price of coal is doing really well. eg thermal coal is at the highest level that it has been for a long time:-[link] surely must yield good returns from their thermal coal mine and help justify CZA getting other mining operations underway? and likewise the price of coking coal is also very strong, eg:-[link] am aware that there were some SA Government proposals that would have made life more difficult for mines, but I understood that these proposals would not stand up to a legal challenge. We have the mining disputes in Tanzania, but surely SA is not going to make life too hard for miners as they are very dependent on mining income - and they won't get investment, and in particular foreign investment if they make the economics too uncertain. So is the recent fall in share price due to adverse sentiment or is there something more concrete?The B
