Coal of Africa Live Discussion

The buzz 08 Jul 2016

RNS Condition (d) Just trying to make some sense of the RNS and put it into plain English! My interpretation is that Universal Coal were meant to have had a Coal Supply Agreement with Eskom's National Control Centre (sounds like lack of control centre to me?). This would have meant that mining would already been in place and an income derived that would have supported working capital funding requirements. Civil service inertia / incompetence seems to be delaying the CSA. Having a CSA and associated income was a central plank in CZA's offer - so without it, the deal cannot proceed - and time is fast running out to the deadline. Well that is how I read it.With the increasing price of thermal coal and the power shortages in S Africa one would have thought that something would have been done. The timescale now looks very tight for the original offer to proceed. If the offer lapses then can another one be resurrected in short time once an CSA has finally been signed? Failing that CZA has funding to go alone - helped by the higher price of coal.[link] anyone have a better interpretation of what is going on?The B

HPC Follower 08 Jul 2016

Re: Deal or no deal Why another extension?... the last RNS gave until15th July for the final Universal shareholders to respond... any balance owed would be covered by resources put into escrow I suspect.

2bozmo 07 Jul 2016

Deal or no deal I fully anticipate that we’ll get another delay reported tomorrow. This seems to be in line with market thinking and there doesn’t seem to be any expectation that the deal will be done tomorrow. I’ve no doubt we’ll takeover Universal in due course, and when it does happen we’ll get a sharp rally as market not pricing deals until they happen. Delay or no delay, the bigger picture is exactly the same, and we are still acquiring the same assets whether in a couple of weeks or somewhat later this year.

The buzz 04 Jul 2016

Spread Actual quotes to buy/ sell 100k shares just now (quoted spread 3.75p-4.49p) were4.19p and 3.825p - too wide for me to contemplating trading.Coal price seems to have resumed its upward trend:-[link] UK interest rates should also help to keep costs down. It is steady as she goes to the end of the month when CZA will emerge as a credible company with a clear future. (Well that is what I keep telling myself!).The B

The buzz 17 Jun 2016

RNS - Delay Noticed that CZA plans to get some working capital in place before closure of the deal. This should be much easier with the recent equity raise. I can say this having recently had a long chat with the FD of another mining company who recently raised some cash - in essence a money lender don't want to lend money when there is little equity as essentially they are the only ones taking a risk. So on that basis, the equity raise, the strengthening price of coal plus the quality of the enlarged company, I would have thought that obtaining loans should be relatively easy (compared to a little while ago). It all makes sense to have the company on a sound financial footing - and if memory serves me correctly the CE used to be in banking - so CZA knows what financing options are viable.The B

2bozmo 16 Jun 2016

Comment from company It's a holiday in SA today, but this is what was said late Tuesday:"We are confident that there should be no additional delays in the closing of the deal. "If there are delays then we'll find out tomorrow as per previous RNS. I doubt in given the above comment. DYOR but I fully expect big move coming as believe the market hasn't priced UC deal and recently market only takes notice of deals once they have occurred.

II Editor 14 Jun 2016

NEW ARTICLE: Can this mining breakout pick up speed? "Coal of AfricaFor some reason, every time LSE:CZA:Coal of Africa starts to do something, folk drop us emails. As a result, we'd guess it has a "following" of folk walking like John Wayne, due to its historical highs above two quid back in 2010. ..."[link]

II Editor 14 Jun 2016

NEW ARTICLE: Trends and Targets for 14/06/2016 "FERRARI & COAL OF AFRICA (NYSE:RACE & LSE:CZA)  At first glance, a strange pairing until one reviews how a Ferrari leapt past two Mercedes at the start of the Canadian Grand Prix. It was something akin to leaving a couple of coal lorries ..."[link]

II Editor 14 Jun 2016

NEW ARTICLE: Trends and Targets for 14/06/2016 "  FERRARI & COAL OF AFRICA (NYSE:RACE & LSE:CZA)  At first glance, a strange pairing until one reviews how a Ferrari leapt past two Mercedes at the start of the Canadian Grand Prix. It was something akin to leaving a couple of coal lorries ..."[link]

HPC Follower 07 Jun 2016

Re: Still Looking Good Yes... looking good for now and into the future.59$ is much better, but this was 80$ two years ago and 120$ five years ago... realistically 80$ is a reasonable median to reach over the next 5 years I suspect.This is not an easy market to break into, and CZA have a real edge now with their large resource base, the reverse takeover of Universal and the Chinese interest as well as Escom to supply the demand.

The buzz 07 Jun 2016

Re: Still Looking Good Update. Sudden surge of buys at around 5.5p. Spread jumped to 5.31-6p. Is there a stock shortage as this movement is on relatively small amounts of shares? Wow the price has doubled in only a few days.The B

The buzz 07 Jun 2016

Re: Still Looking Good Agreed. Several years ago I sat through a lengthy presentation to shareholders (I was the only one!!) at the end of an AGM by the then CE. He oozed with enthusiasm poring over geological maps of the area showing the future coal fields in CZA's domain. Basically there were several areas where potentially huge mines could be built to produce coking and thermal coal. As always then, it was jam tomorrow. Now at last CZA might stand a meaningful chance of tapping these resources in a meaningful timescale.Now I keep on droning about coal prices. It was watching these type of plots that gave me a head start with Western Canadian Coal a few years back and gave me a huge windfall gain. The price of coal is not in a pincer position as when I bought WCC, but it is strongly pointing upwards:-[link] particular note is that the price of thermal coal is now at the highest that it has been for a year and is applicable for deliveries several years from now.[link] looking good again today. 5.3-5.49p. Survived a sale of 200k and just had a 40k buy at 5.4367.The B

2bozmo 06 Jun 2016

Re: Still Looking Good The company and coal market have fundamentally changedavid Brown has turned this company around after some poor decisions in the past. We are likely to get re-rated when UC deal goes through. The environment has meant we actually need to own the assets before re-rating.Commodity markets are where the markets at currently, and massively outperform other assets. We have a huge amount of coal. Nobody has even mentioned GSP. Absolutely huge resource. In meantime we have UC (3.8mt) and then Makhado (5.8mt) plus potentially Mooiplaats and Vele, and any other assets we might acquire as likely to be further consolidation in sector. And remember once UC deal goes through we are supplying Eskom.I suggest anyone new goes through some good posts here. And more importantly bring up a 5-year daily chart. The length of consolidation at these levels means will have a powerful move higher. Free float is 12.8% officially. Reality much lower as I'm aware of further strong hands who will not sell in the foreseeable future. DYOR but still a gift at these levels.

retirementfund 06 Jun 2016

Briefly!

retirementfund 06 Jun 2016

Yay! Black ink!!!