MC Mining Ltd

Kinetic will provide up to US$16m: an US$8m unsecured bridge loan, then a share subscription of US$16m at US$0.2089 in two tranches (76.6m shares). The first tranche is settled by setting off the loan. Shareholder approval is required. Adds to the earlier convertible notes.

capital raising announcement

Christine He resigned as CEO and Managing Director from 29 July 2026 and stays as a non-executive director. Chairman Albert Deng becomes interim CEO without extra pay until a permanent CEO is found. The text says the Kinetic investment and Makhado commissioning made it the right time.

director officer appointment

MC Mining agreed US$9.94m of unsecured convertible notes with Kinetic (US$6.136m) and Eagle Canyon (US$3.8m) to fund Makhado and working capital. Notes convert at US$0.2089 a share and mature 12 months after funding. Shareholder approval is needed for conversion.

debt financing

Kinetic-linked director Albert Deng became Non-Executive Chairman from 19 May 2026, replacing interim chairman Mathews Senosi, who stays on the board. This ends the interim chair arrangement and consolidates Kinetic's board control after the 51% completion.

director officer appointment

The final Kinetic instalment was issued on 22 April 2026 (28,868,277 shares), taking Kinetic to 51% and control. The full US$90m has been received. This completes the subscription agreed in August 2024, and MC Mining is now a Kinetic subsidiary.

farm in farm out completion

The board approved in principle putting Uitkomst Colliery into temporary suspension (hibernation) from 1 March 2026, citing continued underperformance and cash losses despite the 2025 turnaround plan. It is not closure or liquidation. This ends the turnaround effort and leaves Makhado as the focus.

asset acquisition disposition

FY2025 loss rose 147% to US$36m, including US$24.3m net impairments (Uitkomst US$12.3m, GSP US$12m). Revenue fell 52% to US$17.5m; year-end cash was US$7.4m. The text draws attention to going-concern disclosures. Makhado targets first coal in Q1 2026.

annual report

Christine He becomes permanent Managing Director and CEO from 1 October 2025, after serving as interim since 1 July 2024. Starting pay is ZAR3.5m a year plus a bonus of up to 200%. This resolves the open question of a permanent CEO.

director officer appointment

Open pit mining has begun at Makhado, with contractor JCI Mining established and the coal plant under construction for commissioning by end-2025. Steady-state plan is 4Mtpa run-of-mine for 880,000t a year of hard coking coal over a 14-year pit life. This is the first mining at the flagship project.

production update

Uitkomst began a turnaround plan with consultancy MTE: reconfigured mining layouts, plant changes to lift yields, workforce cut from 430 to 366, and longer-term offtake deals. It follows the 2024 fatality and production falls, and aims to focus resources on Makhado.

other

Kinetic and the company amended the subscription agreement so the US$77.0m second closing is paid in nine instalments, matching the use of proceeds. Kinetic still ends at 51%. The first two US$10m instalments (about 47.9m shares each) are shown, the first as received.

material agreement

All three resolutions at the 23 January 2025 general meeting passed, including approval for Kinetic to reach 51% through the second closing. This satisfies the key shareholder-approval condition for Kinetic's US$77.0m second tranche.

agm notice

FY2024 loss was US$14.6m (up 232%) on revenue of US$36.7m (down 18%). Year-end cash was US$0.2m against US$7.5m, and net assets fell 14% to US$75.4m. Going concern is flagged; Makhado funding is expected to conclude in H2 CY2024.

annual report

Hong Kong-listed Kinetic Development Group agreed to invest US$90m for 51% of MC Mining in two tranches. The first is 13.04% for US$12.97m (US$0.2089/share, by 4 Sept); the second, US$77.0m, needs shareholder and regulatory approval. Funds target Makhado.

capital raising announcement

An employee died in a fall-of-ground incident at Uitkomst Colliery on 31 July 2024. The colliery halted operations until further notice while an investigation proceeds with the DMRE. Uitkomst is the company's only producing mine in the context given (inference).

regulatory community update

MC Mining secured an unsecured A$1.0m (US$0.7m) loan from Eagle Canyon, controlled by interim CEO Christine He. It runs to 30 June 2025 at the RBA business rate (6.25%) plus 3%, for working capital. It is a related-party loan.

debt financing

MC Mining agreed an unsecured R20 million (US$1.1m) working-capital loan with Dendocept, a roughly 6.8% shareholder. It runs 12 months from first drawdown at Prime plus 3%. It adds to a thin cash position.

debt financing

Non-executive director Christine He becomes interim MD and CEO from 1 July 2024, replacing Gomwe. She has over 25 years of senior management experience, including financing large mining projects. The focus is on early coal and Makhado funding.

director officer appointment

CEO Godfrey Gomwe resigned effective 30 June 2024, after the Goldway takeover that left it holding over 93%. His 8,000,000 options vested. Interim chairman Mathews Senosi says the company must still finalise funding for Makhado.

director officer appointment

Goldway started a compulsory buy-out offer at A$0.16 per share (ZAR1.96068), on the same terms as the takeover. It closes 25 June 2024, with payment on 16-18 July. It applies only to shares issued before 8 April 2024.

business combination

Goldway's offer closed 22 April and was completed 30 April, leaving its group with 93.05%. MC Mining will leave AIM on 19 June 2024 (last trade 18 June). ASX and JSE listings continue for now; liquidity may fall sharply.

listing compliance notice

Chairman Nhlanhla Nene, chair since April 2022, stepped down as director and chairman effective 25 April 2024. He leaves after the Goldway offer closed, continuing the board turnover that followed Mosehla's exit.

director officer appointment

With the offer unconditional and Goldway's group holding 83.67%, the independent committee reversed course: shareholders should now consider accepting A$0.16. It cites planned delisting, possible compulsory acquisition at 91.075%, poor liquidity and no likely rival bid.

business combination

Goldway declared its A$0.16 offer unconditional after the minimum acceptance condition was met, and extended it to 22 April 2024. It says no further extension is intended. Goldway's takeover of MC Mining is now effectively assured.

business combination

The supplementary Target's Statement includes BDO's independent expert report, which found Goldway's A$0.16 offer neither fair nor reasonable. The independent committee maintains its DO NOT ACCEPT recommendation; the offer closes 5 April 2024.

business combination

Vulcan Resources told MC Mining it will not make a formal offer, ending the A$0.17-0.20 indicative proposal received the day before. The independent committee's DO NOT ACCEPT recommendation on Goldway's A$0.16 bid is unchanged.

business combination

MC Mining received a non-binding indicative proposal from Vulcan Resources (operator of Mozambique's Moatize mine) for a cash takeover at A$0.17-0.20 per share, valuing equity at A$69.3-81.6m. It is above Goldway's A$0.16, but subject to due diligence and not a firm offer.

business combination

MC Mining lodged its Target's Statement on the Goldway A$0.16 cash bid, with the independent committee unanimously recommending DO NOT ACCEPT. The independent expert's report was not ready, and is now due in a supplementary statement around 18 March 2024.

business combination

The independent committee's preliminary view is DO NOT ACCEPT the A$0.16 offer, calling it opportunistic, with too little control premium and little value for exploration assets. The offer needs 50.1% of other shares (82.19% of total) or no one is paid.

business combination

Goldway Capital Investment, the consortium's Hong Kong vehicle, formally launched its off-market takeover bid for all MC Mining shares at A$0.16 cash each. This turns the earlier non-binding proposal into a formal offer.

business combination

Vele's contractor HOS is starting improvement initiatives after weak production, while Makhado contractor appointments stay on track for Q1 CY2024. Makhado funding now expected H1 CY2024 (previously H2 CY2023), with an accelerated H2 CY2024 coal start under review. Uitkomst turnaround continues to improve output.

production update

The consortium revised its non-binding takeover proposal to A$0.16 cash per share, below the A$0.20-0.23 indicated in September. The independent committee says take no action pending the Bidder's Statement. The consortium is stated to represent 64.3% of shares.

business combination

Shareholders Senosi Group and Dendocept, on behalf of holders stated to represent 64.5%, said they intend a cash takeover for MC Mining. An earlier non-binding indication was A$0.20-0.23 per share. No firm price yet; the board's independent committee says take no action.

business combination

Makhado coal reserves rose 53% from 69Mt to 106Mt, and mine life from 22 to 28 years. Peak funding rises 11% to US$96m. Post-tax NPV ZAR6.8bn, IRR 37%. Project interest stated as 67.3%.

resource reserve update

Makhado implementation plan completed: processing plant capacity doubled to 4.0Mtpa, and average hard coking coal output in first five years rises to 880,000tpa from 540,000tpa. The 69.3Mt reserve is expected to rise. Builds on the 2.0Mt plant approved earlier.

resource reserve update

Vele Colliery, idle since 2013, is outsourced for five years to contractor HOS, which will fund the plant upgrade and target 60,000t a month of thermal coal. MC Mining earns R200/t ($11/t). First sales are expected in Q1 2023.

contract award

IDC extended repayment of the R160m ($9.4m) loan, previously due 30 November 2022, and the drawdown date for the extra R245m facility to 30 June 2023. The new drawdown remains subject to IDC due diligence and credit approval.

debt financing

The A$40m rights issue closed, issuing 200,026,719 shares at A$0.20. Shareholders applied for only 107.6m shares; the 92.4m shortfall went to sub-underwriters. SGIH and the Dendocept group each end with 23.98%; total shares 397,681,589.

capital raising announcement

Fully underwritten A$40m (ZAR472m) rights issue at A$0.20, 1.012 new shares per share held, a ~49.7% discount to the 30-day ASX VWAP. It funds Makhado equity and repays the R60m standby. About A$26m in debt commitments also received; construction targeted early 2023.

capital raising announcement

Makhado studies show two alternatives to the April base case (capex ZAR625m, IRR 39.6%): moving the Vele plant (ZAR1.1bn, IRR 45.2%) or building a new one (ZAR1.2bn, IRR 41.0%). Higher peak funding, but build-own-operate-transfer funding could cut it to about ZAR653-679m.

resource reserve update

Uitkomst signed a coal marketing agreement with Overlooked, expiring 31 December 2022, to export at least 20,000t a month at API4-linked US dollar prices for a 5% fee. Related party deal: director Senosi (SGIH) is Overlooked's CEO and majority owner.

material agreement

R60m (US$3.9m) unsecured standby loan from Dendocept, a ~1.5% shareholder, for Makhado early works and working capital. Repayable within 12 months of first drawdown, at prime plus 3%; may be repaid in shares at 15% below 30-day VWAP. Dendocept had lost out to SGIH earlier.

debt financing

AIM checks on the new directors completed. Nhlanhla Nene becomes Chairman and Godfrey Gomwe Managing Director and CEO, ending the interim CEO period; Randazzo resigned. SGIH's Mathews Senosi joins as non-executive director after the 38.4m-share issue.

director officer appointment

Makhado bankable feasibility study completed: 69.3Mt reserves, 296Mt measured and indicated resources, 22-year life, capital ZAR625m ($41.7m), post-tax IRR 38.2%, NPV $268m. Peak funding ZAR727m. Financing now targeted Q3 CY2022, later than the earlier H1 CY2022 hope.

resource reserve update

At the requisitioned EGM, removal resolutions for Pryor and Randazzo were withdrawn as no longer relevant, and Nhlanhla Nene and Godfrey Gomwe were elected directors. Their seats depend on AIM adviser due diligence; if Strand Hanson resigned, AIM trading would be suspended. Resolves the board-control dispute.

agm notice

With South African Reserve Bank approval obtained, 38,363,909 shares were issued to SGIH, converting its first-tranche loan and giving it 19.9%. Issued shares rise to 192,783,464. This completes the first stage of the February SGIH funding.

capital raising announcement

Chairman Bernard Pryor (chair since 2014) resigned effective 11 March 2022. Non-executive director Khomotso Mosehla is interim Chairman pending the 11 April requisitioned meeting. Pryor says the company is on a stronger footing after the SGIH raising.

director officer appointment

The final ZAR35m (US$2.3m) for the Makhado Lukin and Salaita surface rights was paid, funded from SGIH advances, with vendor mortgages being released. This resolves the deferred payment. SGIH has advanced ZAR40m so far, with ZAR6.0m due by 31 March.

asset acquisition disposition

Shareholders holding about 6.8% requisitioned a general meeting to remove chairman Bernard Pryor and interim CEO Sam Randazzo and appoint Nhlanhla Nene and Godfrey Gomwe. The company is reviewing whether the notice is valid.

other

Staged ZAR86m (about US$5.6m) funding from Senosi Group (SGIH) at ZAR1.20 per share, a 7.1% premium: 38.4m shares for 19.9%, then 33.3m more taking SGIH to about 31.7%. Advanced as loans first; second tranche needs shareholder approval. Cash runway extended to at least August 2022.

capital raising announcement

IDC extended repayment of the R160m ($10.3m) loan and the drawdown date for the R245m Makhado Phase 1 loan from 31 Jan to 30 Nov 2022, well beyond the 31 May requested. Drawdown still depends on IDC confirming its due diligence. This eases the near-term repayment deadline.

debt financing

The R35m (US$2.2m) deferred payment for Makhado's Lukin and Salaita surface rights fell due 10 Jan 2022; vendor extended to 28 Feb, with R6m paid first and 15.2% interest. MC Mining has asked IDC to extend its R160m loan and R245m facility to 31 May 2022.

debt financing

FY2021 loss $11.8m (FY2020: $12.2m), including a $6.5m Vele impairment; revenue $20.7m. Auditors flag a material uncertainty over going concern. Mopane mining right granted. IDC debt, now due 31 Jan 2022, can convert to equity if unpaid.

annual report

Non-executive director Sam Randazzo, chair of the Audit & Risk Committee, will be interim CEO when Brenda Berlin leaves on 15 February 2021. The permanent CEO search is said to be at an advanced stage.

director officer appointment

The IDC extended repayment of the R160m ($10.3m) loan plus interest to 31 July 2021, from 30 November 2020. The R245m Phase 1 term loan drawdown deadline is also extended to 31 July 2021, subject to IDC due diligence. Unpaid debt can convert to equity.

debt financing

Headline says the Mopane mining right was granted, ending the pending application noted earlier. The announcement text was not readable, so no details are available.

other

Acting CEO and executive director Brenda Berlin will step down effective 15 February 2021. A search for a permanent CEO is under way, and the company says her exit is not expected to affect finalising Phase 1 funding.

director officer appointment

The R160m IDC drawdowns plus interest fall due 30 November 2020. MC Mining has applied to extend, and if no deal is reached the debt can be converted into equity. Phase 1 now needs about R575m ($37.1m), with R130m equity still to find in Q1 CY2021.

debt financing

Columbia Skies Holdings will subscribe for 7,831,785 shares at about R1.27, raising roughly R10.0m ($0.6m) for a 4.8% stake, subject to Reserve Bank approval. Shares would rise to 162,251,340. Full Phase 1 funding is now targeted by end CY2020.

capital raising announcement

Reserve Bank approval was received for R15.0m ($0.9m) of new equity: 13,331,433 shares at 105.56 SA cents (6.27 pence). IDC gets about 1.1m warrants, and shares in issue rise to 154,419,555. This satisfies the IDC loan condition.

capital raising announcement

Conditional IDC restructuring: R40m ($2.3m) of the undrawn second tranche can be drawn if repaid by 30 November 2020, and first tranche repayment is delayed to November 2020. IDC's Baobab stake rises to 6.7%, and R15m of new equity is required. Phase 1 funding now expected H2 CY2020.

debt financing

Uitkomst, the only producing mine, goes on care and maintenance for the lockdown, and FY2020 production guidance is suspended. Cash is just $1.0m, with $7.0m of IDC second tranche available; $32m is still needed for Makhado Phase 1.

production update

CEO David Brown resigned after seven and a half years, effective 31 January 2020. CFO Brenda Berlin becomes Acting CEO, focused on raising the $52m Makhado Phase 1 funding, of which $17m of IDC debt is secured.

director officer appointment

The government granted the mining right for the 74%-owned Generaal project, with over 407 million gross tonnes of inferred coal. It is the second Greater Soutpansberg right after Chapudi in December 2018; Mopane is still pending.

regulatory community update

FY2019: Uitkomst sold 309,401t for $26.4m revenue (FY2018 $32.7m), and net impairments of $21.9m contributed to the loss. Year-end cash was $8.8m. Makhado Phase 1 construction is now expected in Q4 CFY2019/Q1 CY2020, later than the earlier Q3 CY2019 target.

annual report

The IDC credit committee approved a R245m ($17.5m) seven-year term loan for Makhado Phase 1, subject to documentation. Conditions include an equity raise of at least R200m and settling the existing IDC loan (R184.7m). A residual equity need of R455m ($32.5m) remains.

debt financing

ArcelorMittal South Africa will buy at least 350,000t a year of Makhado Phase 1 hard coking coal, with the right to take another 100,000t, for up to ten years. Conditions include funding confirmed by 15 December 2019. Completes Phase 1 offtakes.

material agreement

Appeals against the Makhado environmental authorisation amendment, suspended since October 2018, were dismissed, so the amendment allowing road transport of coal to Musina to Musina is now effective. This resolves an open permitting thread for Phase 1.

regulatory community update

MC Mining signed a sale agreement with one of the world's largest bulk commodity producers and marketers (unnamed) for Makhado Phase 1 export thermal coal, up to 0.57Mtpa. This meets the thermal offtake condition set in March. Prices are API4-linked; the agreement has standard conditions precedent.

material agreement

Placeholder

other

Announcement titled as completion of the purchase of the key Makhado surface rights. Body text is empty. The half-year report later confirms the Lukin and Salaita properties transferred to Baobab in January 2019, as the November agreement anticipated.

asset acquisition disposition

The DMR granted a mining right for the 74%-owned Chapudi project, the first of three Greater Soutpansberg applications lodged in 2013. Chapudi holds over 6.3 billion gross tonnes of inferred coal resource. Mopane and Generaal rights are expected soon.

regulatory community update

Baobab agreed to buy the Lukin and Salaita properties for R70m (US$4.8m), in two R35m tranches, with completion expected early January 2019. This resolves the land access blocker holding up Makhado; the first tranche will be paid from internal cash flows.

asset acquisition disposition

Announcement titled as the first Makhado off-take agreement secured. The body text is empty, so no terms or volumes can be given here. Later announcements describe it as a hard coking coal deal with Huadong Coal Trading Center for up to 450,000t a year.

contract award

The High Court discharged the December 2014 interim interdict against Makhado's environmental authorisation and refused to extend it to the subsidiary Baobab, with costs against the applicants. Makhado still needs access to two properties under land claims before construction; financing talks are said to be progressing.

regulatory community update

Vele Colliery has been granted its Integrated Water Use Licence for stream diversion, completing all regulatory authorisations for the colliery. The board's decision on the plant modification project remains open, pending long-term pricing and logistics assessment.

regulatory community update

Brenda Berlin, former Impala Platinum group CFO, is appointed CFO from 1 March 2018, replacing De Wet Schutte, who resigned effective 30 November 2017. The chairman says the company is working to finalise Makhado development funding.

director officer appointment

Mooiplaats sale completed on 2 November 2017 for R179.9m. R67m paid initially (R52m to CoAL); R112.9m follows in up to ten quarterly instalments from August 2018. About R16m more comes from released guarantees. Management expects US$1.4m annual overhead savings.

asset acquisition disposition

Annual report and AGM notice posted for 24 November 2017. Board proposes renaming the company MC Mining Limited and a 20-for-1 share consolidation, with new shares trading from 7 December 2017. It also refers to the 'Makhado Lite' plan and the Mooiplaats disposal.

agm notice

CoAL agreed to sell all of Mooiplaats colliery (previously 74%-held, for sale since 2013) to consortium MCH for R179.9m: R67m cash at closing and R112.9m in up to ten quarterly instalments. Proceeds are meant to support Makhado. Closing is conditional on rehabilitation guarantees being replaced.

asset acquisition disposition

June quarter: Uitkomst acquired for R275m, first IDC drawdown of R120m made, and the final US$8.2m owed to Rio Tinto repaid. Cash US$9.7m. CoAL is reviewing Makhado's plan, possibly with lower capex and output; the board is due to review it in September 2017.

quarterly activities report

All conditions for the Uitkomst acquisition are met, with effect from 30 June 2017, when CoAL takes control of the colliery. 261,287,625 shares will be issued to Pan African, taking shares on issue to 2,817,584,530.

asset acquisition disposition

South Africa's Water Minister lifted the suspension of the Makhado water licence, which is now executable. This resolves the main open permitting hurdle. Appellants can still raise concerns through the Water Tribunal, and surface rights remain to be secured.

regulatory community update

CoAL agreed to buy Pan African Resources' coal unit, holding 91% of the Uitkomst Colliery in KwaZulu-Natal, for R275m (US$20.5m): R125m cash, R25m deferred, and 261.3m new shares (about 9.3%). This is the cash-generating asset it has been pursuing. Funded partly by a US$13m placement at R0.52 per share to Summer Trees and M&G.

asset acquisition disposition

CoAL's Baobab subsidiary signed a loan of up to R240m (about US$17.6m) with the IDC to fund Makhado pre-project work, in two R120m tranches. Each is repayable after three years with a 16% real after-tax return. IDC gets warrants (2.5% of CoAL per tranche, R0.60 strike) and 5% of Baobab per tranche.

debt financing

Half-year result: loss narrowed to US$12.97m from US$14.3m. Makhado construction is now targeted for calendar 2018 (earlier guidance was 2017), subject to approvals, funding and board sign-off. The Hengshun MOU has not progressed while CoAL pursues a cash-generating acquisition and the June 2017 Rio Tinto payment.

half year report

Yishun Brightrise (YBI) converted its US$10m interest-free loan into 245,037,980 shares at US$0.04081, removing a potential cash repayment. Of these, 240,042,603 issue now, lifting shares to 2,216,051,527. YBI will hold 19.28%. Rio Tinto is the one remaining settlement, due June 2017.

security holder rights change

CoAL placed 49,007,596 shares with M&G at 4.081 US cents each to raise US$2m for working capital. Shares on issue rise to 1,976,008,924. Follows cash falling to US$7.36m at December.

capital raising announcement

The Department of Mineral Resources granted Vele's Environmental Authorisation for stream diversion. This resolves the pending approval; only a water use licence is still awaited, after which the board will decide on the plant modification, weighing coal price forecasts.

regulatory community update

The Environmental Affairs Minister dismissed the August 2016 appeal against the Makhado Environmental Authorisation amendment, which moved it to Baobab and extended it five years. This resolves one challenge; the suspended water licence appeal remains open.

regulatory community update

Shangren Ding joins the board as a non-executive director from 11 October 2016, representing Haohua Energy International, which the announcement calls CoAL's largest shareholder. He has over 30 years in coal mining.

director officer appointment

Government departments approved moving the Makhado Environmental Authorisation from CoAL to Baobab, the project-owning subsidiary, and extended the start deadline by five years. Any appeal would suspend it immediately, as already happened to the water licence.

regulatory community update

The Universal offer lapsed on 15 July 2016 with conditions unmet, despite 95.72% acceptances. CoAL's directors could not give the working capital statement needed for AIM readmission. CoAL may consider another offer and says it will keep restructuring its balance sheet.

business combination

Universal says CoAL has told it the offer cannot be extended past 15 July 2016. CoAL has not confirmed extra funding, and the Eskom coal supply agreement for New Clydesdale is unsigned, so CoAL's directors cannot give the working capital statement needed for AIM readmission.

business combination

CoAL signs two subscriptions with Hengshun Zhongsheng (229,885,058 shares) and Summer Trees (114,942,529 shares) at US$0.0435, raising US$15m. They replace the terminated Yishun agreement and are conditional on the Universal offer going unconditional.

capital raising announcement

Settles the Rio Tinto/Kwezi dispute by amending the Chapudi deferred payments: minimum monthly payments rise from US$100,000 to US$650,000, with final settlement still 15 June 2017. US$18.8m remains owing, secured by a pledge over MbeuYashu shares. Resolves the March acceleration claim.

material agreement

Rio Tinto and Kwezi allege CoAL breached an obligation under the Chapudi agreements and say all amounts owed are now due. CoAL disputes the notice and says the US$19m balance of the US$75m price (US$56m paid) is not due until 15 June 2017.

debt default or forbearance

Resources restated under JORC 2012 for the admission document. Makhado: 796Mt resource and 188Mt probable reserve, identical to 2013 figures. Vele: 794Mt resource, 24Mt proven and 301Mt probable reserves. Greater Soutpansberg: 7,161Mt resource, unchanged since 2012.

resource reserve update

DRA Projects SA won the Makhado optimisation study and front-end engineering and design package. CoAL plans site work in the second half of 2016, then a 26-month build, with first coal in 2019. This continues the engineering path behind the Hengshun EPC plan.

contract award

Makhado's Integrated Water Use Licence was granted for 20 years, resolving the open licence thread. It is a key approval for the project (2.3Mtpa coking plus 3.2Mtpa thermal). CoAL says it still needs funding to start construction in H2 2016.

regulatory community update

Vele's water use licence was renewed for 20 years (the original 5-year licence was granted in 2011) and amended for the plant modification project. This resolves the licence thread. Stream diversion approval is still expected H2 2016, before the board decides on the plant modification.

regulatory community update

CoAL lodged the Universal offer document with ASIC. Irrevocable undertakings cover 43.37% of Universal, and CoAL holders with 62.63% intend to vote in favour. Competition approval and Mountain Rush consent are satisfied. The offer is open until 3 March 2016.

business combination

Court set aside the condition forcing CoAL to do a Strategic Regional Impact Assessment for Makhado, but the interim interdict against the Environmental Authorisation stays pending review. CoAL says its H2 2016 construction timeline is not expected to be delayed.

regulatory community update

M&G agrees to subscribe US$3m of new CoAL shares at US$0.0435 (about A$0.061). This is the final piece of funding for the Universal offer, which is now fully secured. It needs shareholder approval and the offer going unconditional, by 30 June 2016.

capital raising announcement

Non-binding MOU with Hengshun to buy up to 34% of Makhado owner Baobab for an indicative US$113.94m, implying at least US$335m project value. Conditional on Hengshun winning the ~US$400m EPC contract. Yishun will not be the Makhado partner. Terms targeted H1 CY2016.

material agreement

CoAL agrees a recommended offer for Universal Coal Plc: A$0.20 cash plus one new CoAL share, or a secured A$0.25 loan note, per share. Values Universal at about A$126.4m (US$91m). Intended to give CoAL immediate coal production and cash flow, a shift from its care-and-maintenance position.

business combination

The Environmental Affairs Minister dismissed the appeal against the Vele Environmental Authorisation amendment granted January 2015. This resolves the appeal thread. The Vele water licence is still expected H2 CY2015, but the stream diversion approval is not expected until H2 CY2016.

regulatory community update

Yishun placement completed: 183,231,261 shares issued at 5.15p, raising £9.44m (US$14.5m). Yishun also advanced the US$10m interest-free loan, repayable only in limited circumstances. Talks continue on a Makhado equity stake, shareholder loan and EPC contract.

capital raising announcement

Singapore's Yishun Brightrise will subscribe GBP9.4m (US$14.7m) for up to 183m shares (~9.5%) at 5.15p, subject to shareholder vote, plus lend US$10m interest-free. Yishun intends to seek a Makhado stake and the EPC contract. Funds go to pre-construction and working capital. Starts a possible strategic-partner thread.

capital raising announcement

The Blackspear SPA for Mooiplaats (R250m) will not be extended and has lapsed. CoAL is still talking to several parties, including Blackspear, which is still seeking funding. Setback to the planned sale.

asset acquisition disposition

De Wet Schutte appointed CFO and executive director from 22 June 2015, filling the gap left by Meeser. Formerly of Macquarie and Atlatsa. Base ZAR3.6m, 100% bonus potential, 6.6m options subject to shareholder approval. He will lead funding and the search for a Makhado partner.

director officer appointment

Stage 3 completed: 144m shares at 5.5 pence raised GBP7.92m (US$12.39m), finishing the placement at GBP38.225m (US$59.1m). Shares on issue rise to 1,743,368,613. TMM also received 40m options at ZAR0.30, exercisable for 12 months.

capital raising announcement

The mining department granted the Makhado New Order Mining Right and approved transfer to subsidiary Baobab. Planned output is 2.3 Mtpa hard coking coal plus 3.2 Mtpa thermal coal over 16 years. Construction is expected to start H1 CY2016; the water licence is still awaited. Resolves the long-pending permit.

regulatory community update

Rio Tinto deferred consideration for the Chapudi assets restructured: US$22m remaining, minimum US$100,000 monthly, 4% interest, full settlement 15 June 2017. Mandatory payments are tied to Stage 3, the Mooiplaats sale and other disposals. CoAL pledged its MbeuYashu shares. CEO calls it the last historic liability.

material agreement

CoAL signed agreements for black-empowerment partners to take 26% of Makhado: a community trust 20% and Yoright 6%, leaving CoAL 74%. Subject to Department of Mineral Resources approval; buyers have two years to raise funding, price to be negotiated. Satisfies one of the last requirements for the mining right.

material agreement

Stage 2 of the placement completed and funds received: 300m shares at GBP0.055 raised GBP16.5m (US$25.9m). Stages 1 and 2 total 551m shares, GBP30.3m (US$47.8m). Stage 3 of 144m shares is still due around 29 April 2015.

capital raising announcement

The remaining placement is restructured: Stage 2 is now 300m shares at GBP0.055 (GBP16.5m), due 18 Dec 2014, and a new Stage 3 of 144m shares follows around 29 April 2015. This removes the TMM funding condition; total raised is unchanged.

capital raising announcement

CoAL confirmed receipt of Stage 1 placement funds on 11 Nov 2014: 251m shares for GBP13.8m (US$21.8m). This is the first cash from the placement, though Stage 2 is still outstanding.

capital raising announcement

All regulatory approvals for Haohua's participation were granted, satisfying the conditions for Stage 1 of the placement: 251m shares for US$23.4m, issue expected around 10 Nov. Stage 2 (US$41.5m) still depends on TMM securing its funds. Mooiplaats buyer Blackspear has agreed terms with a funding partner.

capital raising announcement

CoAL signed a sale agreement for its 74% Mooiplaats colliery with Blackspear for ZAR250m (US$23.47m) cash: ZAR150m expected Q1 CY2015, ZAR100m by 30 Nov 2015 at the latest. Blackspear must show funding by 31 Oct 2014. Completes the non-core disposals.

asset acquisition disposition

CoAL settled its Grindrod/Matola port take-or-pay liabilities, past and future to end December 2016, for US$10m: US$6m by end October 2014 and US$4m after the Stage 2 placement or by end December 2014. This resolves the long-running take-or-pay exposure.

material agreement

CoAL agreed a conditional placement of up to 695m shares at GBP0.055, raising about GBP38.2m (US$64.9m), a stated premium of about 101.5% to the 22 August close. Investors include Haohua, M&G, Investec AM and new holder TMM. Proceeds cover the US$30m Greater Soutpansberg payment, US$25m Vele works, US$10m Grindrod and US$6m Investec repayment.

capital raising announcement

Sedgman South Africa is appointed for a three-month front-end engineering design of the Vele plant modification, targeting 2.7Mtpa run-of-mine capacity. Construction is expected to finish in the first half of 2015. Offtake agreements and project finance are still being finalised.

contract award

The DMR granted Section 11 approval, effective 31 January 2014, for the sale of the Woestalleen Complex (NuCoal). The R80m (US$7.2m) price is now payable to CoAL, completing that disposal.

asset acquisition disposition

David Brown, interim CEO since June 2013, is made permanent CEO from 1 February 2014 on ZAR5.5m base pay. This resolves the CEO search. Bernard Pryor becomes interim chairman while a chairman is sought.

director officer appointment

Woestalleen is sold to Blue Falcon 212 for R80m cash and Opgoedenhoop is sold too, together R100.8m (US$9.95m), awaiting DMR approval. CoAL's Lemur stake has been exchanged for 19.5m Bushveld shares, which it is exploring options to monetise.

asset acquisition disposition

CoAL finalised an 18-month R210m (about US$21.4m) working capital facility from Investec at 500 basis points margin, plus 20m options at R1.32. It follows the August term sheet; half is available now, and asset sales are forecast to repay it.

debt financing

Board approved a R220m Vele expansion in August 2013. Vele stops production in October to prepare for construction; fundraising is due to finish by end March 2014, with full production by end 2015. 155 employees were retrenched and 138 redeployed.

production update

Limpopo's environment department granted Environmental Authorisation for Makhado, effective 30 August 2013. This is a regulatory step toward approval for the project whose feasibility study was released in June; the mining right (NOMR) remains a separate pending item.

regulatory community update

The Makhado feasibility study shows a 16-year mine producing 2.3Mtpa hard coking and 3.2Mtpa thermal coal, with 30.1% unleveraged IRR and NPV of R6.79bn (US$697m). Capex is R3.96bn; funding and approvals are targeted by the first half of 2014.

resource reserve update

CoAL proposes putting Mooiplaats on care and maintenance, starting a two-month Section 189A process covering 290 employees and 258 contractors. Mooiplaats lost about R20m a month this financial year. This follows the restructuring begun in November 2012; the process will weigh alternatives.

asset acquisition disposition

CEO John Wallington will leave on 31 May 2013 by mutual agreement, and Professor Nevhutanda resigns from the board on 30 April. Chairman David Brown becomes interim CEO for up to six months while a permanent successor is sought.

director officer appointment

Michael Meeser, an Investec project finance head, is appointed Chief Financial Officer and executive director from 1 June 2013. This fills the finance director vacancy left since Koonin resigned in November 2012; the chairman says he will help strengthen the balance sheet.

director officer appointment

CoAL signed the co-operation agreement with Haohua Energy International, formalising the partnership that followed Haohua's US$100m investment. It covers commercial, technical, financial and operational matters, and Haohua will use best endeavours to arrange further project funding.

material agreement

A derailment on 18 February suspended rail traffic from Komatipoort to Maputo for at least seven weeks, and CoAL issued force majeure notices. Vele production is suspended as stockpiles are full; Mooiplaats and Woestalleen continue until stockpiles fill. Impact on revenue is not quantified.

production update

CoAL received the US$80m conditional tranche from Haohua after shareholder, FIRB and Chinese approvals, completing the US$100m investment. 197,934,063 shares will be issued at 25p, lifting shares on issue to 1,048,368,613.

capital raising announcement

CoAL signed a binding MOU making Vitol its exclusive export marketing agent for thermal and coking coal for eight years (five from production for Makhado), excluding existing contracts and strategic partner offtake. Grindrod also dropped CoAL's obligation to fund Matola terminal Phase 4 capital.

material agreement

Finance Director Wayne Koonin resigned from the board with immediate effect, staying as an employee until 31 March 2013 to help the transition. A search for a successor has begun.

director officer appointment

CoAL started a formal Section 189A (retrenchment consultation) process at Mooiplaats, aimed at moving the colliery to sustainability. This follows the strike and the restructuring review. No job numbers given.

other

Exxaro decided not to exercise its option to take 30% of the Makhado coking coal project, resolving the 30 September decision point. CoAL says it ran parallel talks with other partners; Makhado approvals are expected late 2013 to early 2014.

joint venture update

Haohua Energy (Beijing Haohua subsidiary) made a binding offer to subscribe US$100m of CoAL shares at 25p: US$20m initial, subject to FIRB approval, and US$80m conditional on Chinese approvals and shareholder vote. Price rises to 35p on the initial tranche if approvals miss 31 January 2013. Two board nominees proposed.

capital raising announcement

CoAL began Federal Court of Australia proceedings against former finance director Blair Sergeant, alleging breaches of duty over a 2009–2010 corporate transaction, and obtained an order freezing A$6m of his assets. Further details were withheld pending his response.

other

The National Union of Mineworkers began a legal strike at Mooiplaats Colliery on 25 September after rejecting a 22% wage offer; operations stopped. The mine employs 368 people and produces 6,000 run-of-mine tonnes a day. Adds to losses already expected at thermal mines.

other

CoAL placed 115,478,798 shares at 25p to raise about US$44.8m, with 34,908,632 of them subject to a September shareholder vote. Former Impala Platinum CEO David Brown becomes Chairman; Richard Linnell, Simon Farrell, Steve Bywater and Mikki Xayiya leave the board.

capital raising announcement

CoAL arranged an Investec package of about US$58.7m. Investec subscribed 19,148,408 shares at a 5% discount (29.21p), with a right for CoAL to require up to 81,061,507 shares over 12 months. A US$50m two-year loan term sheet would replace the US$40m JP Morgan facility, subject to conditions.

capital raising announcement

CoAL and Exxaro agreed to push Exxaro's decision on its option for up to 30% of Makhado out to 30 September 2012, while further studies and valuation work are done. Makhado's DFS completion is now expected in the third quarter 2012.

joint venture update

Greater Soutpansberg gross tonnes in situ rose 429% to 7.957 billion from 1.505 billion, mainly from the Chapudi assets bought from Rio Tinto and Kwezi in May. Mineable tonnes in situ rose 209% to 2.004 billion. Acquisition cost was US$0.055 per mineable tonne.

resource reserve update

The Chapudi acquisition closed: CoAL paid the first US$29,357,545 tranche and subsidiary Keynote took ownership of the equity. The remaining first-tranche amount and later payments remain subject to approvals and conditions in the amended agreement.

asset acquisition disposition

South African ministerial section 11 consents were granted, completing the regulatory steps for buying Rio Tinto and Kwezi's Chapudi assets for US$75m. First tranche of US$29.4m is due at closing; US$30m is payable on a mining right or within two years. Resolves the open approval condition.

asset acquisition disposition

Vele's first test train of about 1,500 tonnes of thermal coal left the Musina siding on 24 April 2012 for Maputo and Asian sale. It tests rail capacity ahead of weekly trains, following December 2011 extraction and February hot commissioning.

production update

The NiMag management buyout became effective on 31 March 2012 once conditions were met. CoAL receives R32.4m (60%) by 10 April; the remaining 40% is a vendor loan at prime less 0.5%, repaid in 12 quarterly instalments. This resolves the pending sale.

asset acquisition disposition

Half-year to December 2011: coal sales US$143.8m (US$88.3m prior period) and loss after tax about US$74.7m (headline loss per share 13.02 cents, per the next-day notice). Vele extraction started; Makhado DFS completed and product confirmed hard coking coal. Holfontein agreed sold for about US$12.7m.

half year report

CoAL agreed to sell the non-core NiMag Group to its management for ZAR54m (about US$6.6m), with 40% (ZAR21.6m) financed by a CoAL loan repayable over four years. Completion is targeted by 28 February 2012, subject to exchange control approval.

asset acquisition disposition

CoAL signed an MOU with the Save Mapungubwe Coalition, which agreed to stay its legal proceedings and appeals against Vele, including the water licence, if a formal agreement is signed by 31 January 2012. This addresses the opposition behind the pending Water Tribunal appeal.

regulatory community update

The placing priced at 51p (R6.50) for 130,000,000 shares, a 10.5% discount, raising about £66.3m (US$106m), roughly 24.4% of existing shares. M&G took 40m shares. 50,323,963 shares await shareholder approval around 14 December.

capital raising announcement

CoAL launched a placing to raise about US$100m from institutions, with 79,676,037 shares issued firm and the rest subject to a ~14 December shareholder vote. It also signed a 364-day US$40m JP Morgan facility, drawable only if at least US$75m is raised.

capital raising announcement

The Minister lifted the suspension of Vele's water use licence pending the Water Tribunal appeal, resolving the late-July setback. CoAL can resume full operations and re-employ staff for about 500 jobs, targeting first coking coal in Q1 2012. The appeal itself is still pending.

regulatory community update

FY2011 (to 30 June): revenue US$261.4m, up 166%, but net loss US$219.0m (FY10: US$167.8m) after US$97.4m impairments and US$29.9m foreign exchange losses. Cash plus undrawn Deutsche Bank facility US$40.3m. Makhado feasibility study in its final stages. Text truncated.

annual report

Vele's water use licence, granted 4 April, was automatically suspended after an NGO coalition appealed to the Water Tribunal on 28 July. CoAL is urgently asking the Minister to keep it in force. Water-dependent activities are halted, a new setback just after the July authorisation.

regulatory community update

The environment department granted Vele's section 24G rectification authorisation from 5 July 2011, with specific conditions. This resolves the compliance notice rectification process. Construction is expected to take six to nine months from restart, ramping up to 1 million tonnes a year.

regulatory community update

The water department granted Vele's integrated water use licence, applied for on 1 November 2009. This resolves a long-awaited approval, but the compliance notice rectification process continues and no restart date was given.

regulatory community update

Wayne Koonin, formerly CFO of Platmin, became Finance Director on 1 April 2011, replacing Blair Sergeant, who resigned and will lead Lemur Resources. Simon Farrell moved to a non-executive role, focusing on the Tshipise gas JV (50%) and a Limpopo industrial project.

director officer appointment

CoAL secured a US$50m revolving export finance facility from Deutsche Bank at LIBOR plus 3%, up to 30 months. It will repay the fully drawn US$20m JP Morgan loan. Cash was US$31m at 18 March 2011, following the A$23m December quarter balance.

debt financing

CoAL lodged the Makhado mining right application, meeting the end-2010 target, and executed the Rio Tinto farm-swap prospecting rights. A 19,100t bulk sample is due at Tshikondeni by mid-March for ArcelorMittal testing; feasibility study peer review is due Q1 2011.

regulatory community update

CoAL agreed to buy Rio Tinto's Chapudi Coal Project (1,040Mt JORC resource) and related exploration properties for US$75m. Chapudi is contiguous with Makhado and more than doubles its 947Mt resource. Extends the Rio farm swap and makes CoAL the dominant Soutpansberg holder.

asset acquisition disposition

FY to 30 June 2010 statutory loss of US$101.4m (reported in the text as $), including a $52.8m Mooiplaats impairment. EBITDA loss was about $12.7m. Woestalleen contributed $10.4m EBITDA over six months; revenue and profit fell short of expectations.

annual report

The DMR approved the Rio Tinto farm swap, resolving the pending approval from October 2009. This lets CoAL lodge the Makhado mining right application, expected before end 2010. It also adds three coking coal projects (Mount Stuart, Voorburg, Jutland), based on historical drilling.

regulatory community update

CoAL has complied with environmental and water directives at Vele and is applying for rectification. It cut 596 Vele jobs, and production is now likely to restart in Q4 2010, slipping from the August target. Vele timing is no longer confirmed.

production update

After meeting the Department of Environmental Affairs, CoAL said it is complying with the Compliance Notice and has ceased certain Vele activities, while maintaining it acted within its mining right. The water licence is still not received, and mining and processing cannot start without it.

regulatory community update

Environmental groups served a High Court interdict application seeking to stop Vele mining, earth moving and plant construction until appeals and the water licence are resolved. Separate appeals against the mining right are pending. CoAL says they have no merit and will oppose them.

regulatory community update

CoAL responded to a South African minister's reported 'illegal activities' claim at Vele, saying it works within its mining right. It confirmed the Environmental Affairs Department refused an access road and fuel storage in April (under appeal) and that the water licence is still awaited. This is a new threat to Vele's timeline.

regulatory community update

The placing completed: 50m new shares at 110p (A$1.88), a 0.2% discount to the AIM close, raising about £55m (A$94m gross). This resolves the 16 June launch; the shares are about 10.4% of prior capital.

capital raising announcement

CoAL launches a placing of up to 50m shares (~10.4% of capital) to raise up to about £55m; price to be set by bookbuild. Proceeds fund the Makhado bulk sample and feasibility study, acquisitions, and repaying the US$20m JP Morgan facility.

capital raising announcement

Trading update: Vele plant 60% built, production targeted August 2010, but its water licence is still awaited. Makhado feasibility study results due early 2011. CoAL is weighing funding options including asset sales, and may delist from ASX after a London Main Market move.

investor presentation

John Wallington, former CEO of Anglo Coal, becomes CEO from 15 June 2010. MD Simon Farrell moves to Executive Deputy Chairman. Several senior hires made. Makhado mining right application is expected next quarter, subject to the Rio Tinto farm swap approval.

director officer appointment

The Vele mining right was executed and development starts immediately, with first coking coal targeted for Q3 2010 and ~1Mtpa by end 2010. Phase 1 capex rises from ZAR350m to ZAR450m (ZAR260m spent), citing delay costs. ArcelorMittal offtake still being negotiated.

production update

With the Vele mining right granted, CoAL issued 5,625,750 shares to Tranter for the remaining 20% of Limpopo Coal, taking Vele to 100%. It also issued 350,000 shares for logistics services and 912,500 employee options. Shares on issue rise to 480,514,663.

asset acquisition disposition

The Vele coking coal project (80% held) received an unconditional mining right, which CoAL calls one of the biggest milestones in its history. Holfontein got a conditional right. This resolves the long-awaited Vele approval; both rights are to be executed by end February.

asset acquisition disposition

NuCoal acquisition completed, adding the Woestalleen Colliery (2.5Mtpa saleable coal) near Mooiplaats. After a 10% retention (ZAR65m) and working capital adjustments, the price is ZAR467m, below the ZAR650m announced. Funded from the October placing; economic interest from 1 Jan 2010.

asset acquisition disposition

Formal BEE agreements signed with Firefly, following the 30 Sept deal: options over 50m CoAL shares at 60 pence, exercisable 1 Nov 2010 to 1 Nov 2014 (~9.53% diluted). Firefly may nominate two directors; AGC/CIL (15.03%) cede voting rights. FIRB approval still required.

security holder rights change

The placing was completed: 59,867,731 shares at 95 pence, raising about £56.9m gross (~14.52% of existing shares). Proceeds fund the ZAR650m NuCoal purchase, with the rest for rail wagons, Vele and Makhado spending, and working capital.

capital raising announcement

CoAL proposes a placing of up to 59.87m shares (~14.52%) to raise about £59.6m, mainly to fund the ZAR650m purchase of NuCoal, a thermal coal producer near Mooiplaats (Woestalleen Colliery, 2.5Mtpa). It also plans to move to the London Main Market in H1 2010.

capital raising announcement

BEE deal finalised: 50m options at 60 pence, five-year term, 12-month lock-in (about 10.85% of issued capital), go to Firefly Investments, replacing the 2008 CIL option. Firefly can nominate two directors, and AGC/CIL (17.33%) cede their voting rights to it. Needs FIRB consent.

security holder rights change

First sale and loading of mid-volatile lean coal from Mooiplaats: trucking began 8 September, and two trains went to the Matola terminal in Maputo. Management calls it the transition to a mining company. Export-quality coal still expected November 2009 at earliest or Q1 2010.

production update

CoAL signed two binding agreements to buy the remaining 26% of Limpopo Coal (owner of Vele) for 5,625,750 shares (20%) and 1,990,000 shares (6%), lifting its interest from 74% to 100%. Completion needs shareholder, reserve bank and (for the 20%) mining right approvals.

asset acquisition disposition

Mooiplaats revised mine plan finalised: export-quality thermal coal now expected November 2009 at earliest, Q1 2010 at latest, with no change to tonnage or mine life. Vele Phase 1 (~1Mtpa coking coal, R350m) launches on mining right, expected by end Q3. Makhado application awaits Rio Tinto farm swap approval.

production update

Mooiplaats wash plant commissioned (110,000t/month ROM capacity), under budget, but adverse geology now delays bituminous coal to Q1 2010. Cash is US$82.7m, enough for Mooiplaats and Vele Phase 1. In-principle offtake for at least 70% of export coal; Vele mining right decision expected Q3.

production update

March 2009 quarter: cash fell to A$122m, no debt. Two miners produced 16,900t of coal at Mooiplaats. Exxaro was granted an option over up to 30% of Makhado at NPV less 20%. Also reports Matola rail and port expansion, MCC chosen for Vele mining, and a stake in a Zimbabwe coal JV. Vele mining right hoped by September.

quarterly activities report

ArcelorMittal South Africa bought ArcelorMittal Group's 16.3% stake in CoAL for R404.5m cash and holds an option for a 2.5mtpa coking coal offtake. It becomes CoAL's second-largest holder. This moves the ArcelorMittal relationship to its South African arm; it is a secondary trade, not new money for CoAL.

asset acquisition disposition

MCC Contracts (Eqstra) selected as preferred partner for opencast mining at Vele (74% owned). Mining is anticipated from Q3 2009 at 1-1.5mtpa, ramping to 5mtpa. Formal agreements are still to be negotiated, and the mining right is still pending.

contract award

Transnet rail allocation of 1mtpa secured to Matola terminal, Maputo, matching the port allocation for coking coal. CoAL will loan funds to expand Matola, lifting its port allocation to 3mtpa from an anticipated 1 August 2010. A further 2mtpa of rail is still being negotiated.

material agreement

Lachlan Star and CoAL agreed to terminate the Holfontein purchase after Lachlan shareholders refused the share issue on 28 November. This resolves the doubt over the A$25m sale; Holfontein stays with CoAL, which describes it as non-core.

material agreement termination

Transnet rail allocation secured for Mooiplaats coal to match the Richards Bay port allocation (5-year offer, 75% take-or-pay). First coal cut; cash A$225m, no debt. Vele mining plan revised to opencast plus underground, with lower costs and mine life beyond 2040 (preliminary). Reviewing a London Main Board listing.

regulatory community update

Lachlan Star shareholders voted down the share issue to CoAL at their 26 November AGM, so a condition of the Holfontein purchase was not met. Lachlan will discuss it with CoAL. The A$25m sale is now in doubt.

asset acquisition disposition

CoAL produced its first run-of-mine coal at Mooiplaats, the company's first coal. Development for two continuous miners to start cutting is due in six to eight weeks. Wash plant and first sales are still ahead.

production update

CoAL lodged the Vele New Order Mining Right application, a step towards a 5mtpa opencast coking coal mine. At Mooiplaats the mining contract is signed and mining is on track before end-2008. Management expects close to A$200m cash and no debt when Mooiplaats starts.

regulatory community update

Vele resource upgraded from 441Mt to 721Mt total in situ. Study scenarios give 5mtpa saleable coal at US$43/t mining cost at Makhado and US$54/t at Vele. Mooiplaats mining due Q4 2008; cash A$240m, no debt, down from over A$280m at end July.

resource reserve update

CoAL secured long-term port allocations: 1mtpa via Maputo's Matola terminal and ramping to 900,000tpa at Richards Bay by 2010, with rights to expand (Maputo possibly up to 7mtpa). Both are conditional and carry take-or-pay on 75% of tonnage. Rail allocations still to be secured.

material agreement

Makhado (formerly Baobab) resource nearly doubled to 1.335 billion gross in situ tonnes from 713Mt, covering six farms (about 40% of the project area). 230Mt is Measured. Another upgrade is expected before year end; management calls Makhado its primary focus.

resource reserve update

CoAL signed a non-binding MOU with Rio Tinto/Kwezi-held Chapudi Coal to swap prospecting rights near Makhado and form a Limpopo exploration joint venture, with Chapudi as operator. It is subject to due diligence and ministerial approval. CoAL targets 5mtpa mining from June 2009.

joint venture update

Riaan van der Merwe joins as Chief Operating Officer from 1 August 2008. He spent 19 years in South African coal at Anglo American. The company says it is converting projects into operating mines.

director officer appointment

Vele (formerly Thuli) resource upgraded to 441.47Mt gross in situ, up from 352Mt Inferred, with 133.84Mt Measured. Covers about 80% of the project area. A further 65-hole drilling program is planned, and a scoping study is expected within two months.

resource reserve update

CoAL agreed a BEE deal with Coal Investments Limited (Och-Ziff funds): 37.5m shares at £1.30 (up to £48.75m) plus 50m options at £1.80. With African Global Capital's holding, the group could reach about 26.4%. Options need shareholder approval and conversion of Makhado and Vele mining rights within 12 months.

capital raising announcement

ArcelorMittal received FIRB approval, so the second tranche of 13,635,000 shares at £1.11 (£15.1m) will be issued. ArcelorMittal will hold about 17.8% of CoAL, completing the £66.7m placement announced in April.

capital raising announcement

CoAL agreed to sell 100% of Holfontein to Lachlan Star for up to A$25m: A$15m on transfer (at least A$9m cash) plus milestone payments. Conditions include South African approvals and Lachlan shareholder approval. CoAL would become Lachlan's largest shareholder and focus on Mooiplaats and Limpopo.

asset acquisition disposition

First tranche of the ArcelorMittal placement is complete: 46,365,000 shares issued at £1.11, raising £51.5m. ArcelorMittal now holds 52,659,419 shares (14.9%); shares on issue are 353,438,917. The second tranche of 13,635,000 still awaits FIRB approval.

capital raising announcement

ArcelorMittal will subscribe for up to 60m shares at £1.11 (£66.7m, about 16%) and sign an offtake for at least 2.5Mt a year of coking coal from Baobab and Thuli, with an option for 5Mt. It gets a board nomination. Second tranche needs FIRB approval.

capital raising announcement

CoAL signed a Cooperation Agreement with Transnet Freight Rail to help secure rail capacity for export coking coal from Thuli and Baobab, from 1–1.5Mt a year in 2009 to 10Mt in 2012. A rail pre-feasibility study is targeted by end-May 2008. Not yet binding freight rights.

material agreement

Section 11 approval arrived, so CoAL completes its 70% of Mooiplaats with the final £10m and 4.44m shares. It also agreed to buy the other 30% for ZAR130m plus 4.75m shares (about A$26.2m), taking it to 100%; the share issue needs shareholder approval.

farm in farm out completion

Directors Nchakha Moloi and Nonkqubela Mazwai resigned after they and Motjoli sold their CoAL shares to Signet Mining: 5,282,117 shares (1.78%) now, plus an option over 28,528,395 (9.59%). This ends the Motjoli board presence created by the 2007 deal.

director officer appointment

Baobab's Fripp and Tanga properties have an initial resource of 713.1Mt, including 156.4Mt potentially opencast (39.7Mt measured). Mooiplaats interim estimate is 103.3Mt in situ, 76.1Mt mineable. Rail cooperation with Transnet is being finalised. This delivers the Baobab resource expected by year-end.

resource reserve update

Following AGM approval, GVM placed 15,000,000 shares at A$1.50 to raise A$22.5m via Euroz Securities, mainly to Perth retail investors. It adds to the 65m-share London placing at 65p and funds Mooiplaats and Baobab development.

capital raising announcement

GVM raised £42.25m by placing 65,000,000 shares at 65p, about 23% of enlarged capital, to fund Mooiplaats and Baobab. It is conditional on shareholder approval at the 28 November AGM. This is far larger than the £24.7m raised earlier in 2007.

capital raising announcement

First stage of the Coal of Africa acquisition completed: after £21.5m paid, GVM holds 46.6% of CoAL and issued 8,888,888 shares. Final stage (to 70%) needs £10m cash and 4,444,445 shares once conditions are met. Development decision expected by year-end.

farm in farm out completion

GVM bought Exxaro's historical Baobab database (about 1,200 boreholes) for ZAR20m (A$3.3m), and agreed to buy 552 ha at Wildebeesfontein next to Holfontein, enlarging holdings by a third. Management says Baobab mining could begin in 2009; initial resource expected by year-end.

asset acquisition disposition

GVM signed a Heads of Agreement to buy 60% of Tshikunda Mining, holding a 32,583 ha coal property next to Baobab and Exxaro's Tshikondeni mine, for ZAR20m (about A$3.5m). It also commits up to ZAR50m to explore. Conditional on approvals.

asset acquisition disposition

Mooiplaats: 43Mt measured resource defined in the B upper seam, plus 240Mt inferred, and Coal of Africa was granted a Mining Right over 940 ha. Only ministerial and competition consents remain before GVM completes its 70%. Production targeted for third quarter 2008.

resource reserve update

GVM completed a placing of up to 37,350,000 shares at 34p to raise up to £12.7m, to fund Kelso if it elects to buy 70% of CoAL. It needs shareholder approval; Baobab received ministerial approval, clearing the Motjoli deal.

capital raising announcement

GVM agreed a further placement of 8,333,333 shares at 30p to raise £2.5m from London investors, to fund the Baobab 50% purchase. It exceeds the company's placement capacity, so needs shareholder approval.

capital raising announcement

GVM agreed terms to buy Kelso Mining, which holds a right to acquire 70% of Coal of Africa (Mooiplaats coal project near Ermelo). Maximum consideration is about £10m; exercising the CoAL option would cost a further £30m. It is conditional on a resource over 450Mt.

asset acquisition disposition

GVM placed 12.2 million shares at 20 pence (A$0.50) with Asia Energy plc to raise £2.44m (A$6.1m) for South African coal development. Asia Energy's CEO and CFO, Steve Bywater and Graham Taggart, were invited to join the board.

capital raising announcement

GVM agreed to buy Baobab Mining and Exploration, which holds the other 50% of the Baobab coal JV, from Petmin for £2.5m cash. Together with the Motjoli deal this gives 100% of Baobab; the tonnage (500Mt-1bn) is conceptual only.

asset acquisition disposition

GVM listed on the Johannesburg Stock Exchange, satisfying the last condition for the 74% Limpopo Coal acquisition, and issued the 20,812,500 shares to vendors. It targets Holfontein production in first half 2008 and Limpopo the following year.

asset acquisition disposition

GVM agreed to buy Motjoli's 51% of Holfontein (taking GVM to 100%), plus its 50% of the Baobab JV and three Limpopo licences, for 34,863,226 shares plus 3,417,964 more on a Richards Bay export allocation. Conditions include JSE listing and shareholder approval.

asset acquisition disposition

GVM proposed a UK placing of 24,615,384 shares at 13p to raise £3.2 million, a 3.7% discount to the AIM price. Proceeds fund the Holfontein purchase balance and development, Limpopo drilling and working capital. The Limpopo acquisition was approved by shareholders on 28 June.

capital raising announcement

GVM sold 15,000,000 Samroc shares at 2 cents for about A$56,800 and gave the buyer an option over its remaining 98,000,000 shares at 2 cents (about A$371,000). This continues GVM's exit from Samroc, at well below the earlier A$750,000 expectation.

asset acquisition disposition

GVM agreed to acquire a 74% interest in a Limpopo coal prospecting right, paying 20,812,500 shares (total on issue then 52,123,387). Inferred resource is 352 million tonnes; subject to ministerial consent and shareholder approval.

asset acquisition disposition

A prospecting right was granted for the Holfontein coal project (GVM 49%), letting development proceed. An 18-borehole infill drill program (about R1 million) is planned by June, with a feasibility study by August.

regulatory community update

GVM raised $350,000 by placing 1,400,000 shares at 25 cents. It also issued 1,637,500 shares for NiMag preference shares and 575,000 shares for professional fees, and said further coal property negotiations should conclude in 3-4 weeks.

capital raising announcement