HPC Follower
20 Jul 2017
South African licence freeze Have CZA got all their outstanding licence requests in; if so they may not be affected by the dispute between the Minister of Mines, who has gazetted the freeze on new licence applications, and the Mining Chamber of Commerce - who don't like the new mining charter proposed?
The buzz
19 Jul 2017
India - Diversification of Imports India has decided to reduce its vulnerability to interruptions of coking coal supply from Australia (following cyclone Debbie) and procuring coal all the way from Canada![link] is almost an open invitation to CZA to step up and offer some coal - they might even get a long term contract that would ensure that any new mine that is built has a guaranteed revenue stream.With the strengthening price of coking coal etc I am a bit bemused by the fall in the share price below 3p a share.The B
retirementfund
09 Jul 2017
Can anyone hazard a guess at NAV per share?
2bozmo
06 Jul 2017
Re: Rio Settlement - Finally sorted out! Thanks Buzz. Yes, massive upside in this asset. With this and Makhado i would not be surprised if someone bid for us before the end of the year. Coal prices are still going up, all our legacy issues have been solved - once we get the surface rights which will probably happen in Q4 then we're a very attractive target, particularly when there's expected to be further consolidation expected in the sector. If we can sell Mooiplaats this quarter, and potentially Vele then i can see us being in a very sweet spot. Without doubt significant value for shareholders at this level.
The buzz
05 Jul 2017
Rio Settlement - Finally sorted out! At long last CZA has paid the outstanding money to Rio Tinto. Now if memory serves me correctly, go back a few years with the previous management and their grandiose plans: I believe that the deal was to buy from Rio a strategically important strip of land between two of CZA'a coal fields. It was very attractive to buy that land to simplify operations. Sadly this came at a heavy cost that could not be paid for with revenues - as the revenues had stalled. Fortunately the current management have managed to keep the plates on the poles spinning before any fell off. Now CZA have a much straighter road with real prospects of capitalizing on the assets that we have all bought into.The B
2bozmo
15 Jun 2017
market report 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 n
The buzz
14 Jun 2017
Market Re-Alignment [link] interesting bit about this article is that miners in places such as Mozambique are likely to get more demand as Australia has proved to be an unreliable supplier after yet another Force majeure - this time due to typhoon Debbie. Secondly there are forecasts of a sustained high price for coking coal for this and next year. All this should be positive for CZA.The B
II Editor
30 May 2017
NEW ARTICLE: Trends and Targets for 31/05/2017 " RED ROCK, COAL OF AFRICA, and CONDOR GOLD (LSE:RRR, LSE:CZA, LSE:CNR)Â One of these stupid philosophy questions, "if a tree falls in the forest, does it make a sound if no-one hears it?" sprung to mind when walking the dogs. With a sound like ..."[link]
The buzz
30 May 2017
Re: Makhado Water License suspension lifted [link] of coverage, but not much movement in the share price. Things are fitting into place. I won't be going to the AGM this year - partly as much of the scene is now set for the company to stand on its own two feet! It is only a matter of time before the mines start to throw off some profit - at long last!The B
Iclaude
30 May 2017
Re: RNS on Tuesday then? A new era is dawning for CZA. There was never any doubt about their potential and the needs of the country. Best of luck everyone.
hedger123
29 May 2017
Re: RNS on Tuesday then? Up 21% on JSE. Open in London tomorrow should be fun.
HPC Follower
29 May 2017
RNS on Tuesday then? I don't know the source of the news on gaining the necessary integrated water use licence post the last appeal, but it would be good so see the project launched.This summarises the project quite well...[link]
2bozmo
29 May 2017
Makhado Water License suspension lifted South Africa open for business.
nat-king-coal
12 May 2017
Re: thoughts 10 out of 10 so far 2bozmo you are on the balllet's hope the rest fall's into place
2bozmo
11 Apr 2017
thoughts This is now a strong buy:The company should start to re-rate from an explorer to a producer. This should be done by the end of next month once the deal is complete. Following the incompletion of the Universal deal, the market might want to see completion before the share price reacts and in many ways this is understandable. However, in this case we now have the monies available for the purchase and not waiting for the Universal/Eskom deal to come to fruition.This is the first in a number of acquisitions, with another similar one expected in the next 6-12 months. The acquisition of Uitkomst is a positive first step. When this is coupled with the Makhado project and potential restart of Vele then it will represent a complete reinvention of the Company.The overturn of Makhado IWUL suspension and the completion of Vele licences are expected ‘soon’. How soon is really out of our hands but the company are pushing hard now to get these done. Previously there was little incentive to get the IWUL overturned as there are on-going costs once this is done.
