Past year: ▲ 19%(20.0c – 32.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
1 Feb 2016agm notice● Neutral
CoAL published its AIM admission document and a notice of general meeting for 3 March 2016 to approve the Universal acquisition and related share issues. It says it intends to extend the offer closing date, so the timetable will move.
1 Feb 2016resource reserve update● NeutralMajor
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.
28 Jan 2016quarterly activities report● Neutral
December 2015 quarter: cash US$31.1m plus US$1.018m restricted, down from US$37.2m last quarter. Recaps the Vele and Makhado licences, the DRA award, the Hengshun MOU and the Universal offer. Makhado construction is still expected H2 CY2016.
18 Jan 2016contract award▲ GoodMajor
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.
14 Jan 2016regulatory community update▲ GoodMajor
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.
14 Jan 2016regulatory community update▲ GoodMajor
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.
11 Jan 2016capital raising announcement● Neutral
CoAL responds to a Chinese exchange notice that Haohua Energy International intends to subscribe US$5.0m at US$0.0435 per share. No binding agreement exists, and discussions remain incomplete. Any deal needs shareholder, Chinese and FIRB approvals.
21 Dec 2015business combination▲ GoodMajor
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.
21 Dec 2015business combination● Neutral
Formal offer document for the Universal Coal offer, dated 21 December 2015. Terms are unchanged from 26 November. Acceptances close 3 March 2016 (CDI holders 26 February), unless extended. Text is truncated, so no new figures are visible.
17 Dec 2015regulatory community update▲ Good
South Africa's Competition Commission unconditionally approved CoAL's acquisition of Universal Coal. This clears one regulatory condition of the 26 November offer and moves the merger closer to completion.
10 Dec 2015regulatory community update● NeutralMajor
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.
7 Dec 2015capital raising announcement▲ GoodMajor
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.
2 Dec 2015director officer appointment● Neutral
Following approval at the 27 November 2015 AGM, CEO Brown and CFO Schutte receive 9.71m and 5.45m performance rights. Five non-executive directors receive 1m options each at £0.055. Routine remuneration grants, no change to leadership.
2 Dec 2015material agreement▲ GoodMajor
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.
30 Nov 2015regulatory community update● Neutral
ASIC granted relief allowing CoAL to extend the Universal offer period, improve the consideration or free the offer of conditions. Procedural step; CoAL is still preparing the offer document.
26 Nov 2015business combination● NeutralMajor
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.
26 Nov 2015business combination● Neutral
Universal Coal's own release of the same recommended CoAL offer: A$0.20 cash plus one CoAL share, or a A$0.25 loan note, per share. Independent Universal directors intend to accept for their 3.25% holding. Re-release of the 26 November terms.
19 Nov 2015regulatory community update▲ GoodMajor
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.
30 Oct 2015quarterly activities report▲ Good
September 2015 quarter: Yishun's £9.4m (US$14.7m) and US$10m loan received; cash US$37.2m plus US$1.3m restricted. Yishun began due diligence on a Makhado stake. Makhado water licence now expected Q4 CY2015; interdict hearing due November 2015.
27 Oct 2015annual report● Neutral
2015 Integrated Report for the year to 30 June 2015, covering the five-point turnaround strategy. Visible text says Vele stays on care and maintenance pending approvals and better coal prices, and Makhado construction is expected to start H2 CY2016. Largely repeats the earlier FY2015 results.
27 Oct 2015other● Neutral
Standard Appendix 4G governance checklist accompanying the annual report, dated 26 October 2015. It points to the corporate governance statement at pages 42 to 53. Administrative, no new company substance.
21 Sept 2015capital raising announcement▲ GoodMajor
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.
11 Sept 2015annual report● Neutral
Audited FY2015 statutory accounts lodged. Readable text covers only the index and directors' profiles, including Schutte's 22 June 2015 appointment and Mifflin and Mosololi joining in December 2014. No financial figures visible in the text provided.
11 Sept 2015annual report▲ Good
FY2015 (June): loss fell to US$6.7m from US$84.1m, with no revenue and operations on care and maintenance. First unmodified going-concern opinion since FY2011. US$65m three-stage raise completed. Makhado DFS: 344.8m mineable tonnes, 16-year life. Vele decision on plant modification expected around June 2016.
11 Sept 2015investor presentation● Neutral
Presentation of FY2015 (June year) results by the CEO and CFO. The visible text is only the cover and legal disclaimer, so no new figures or facts can be taken from it.
5 Aug 2015capital raising announcement▲ GoodMajor
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.
27 July 2015quarterly activities report▲ Good
June 2015 quarter: Makhado mining right granted; Rio Tinto balance down to US$19.8m; Stage 3 raised US$13.8m. Cash US$17.8m plus US$1.3m restricted. Makhado water licence now expected Q3 CY2015, construction H2 CY2016, partner and offtake targeted by end H1 CY2016.
2 July 2015asset acquisition disposition▼ BadMajor
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.
22 June 2015director officer appointment● NeutralMajor
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.
15 June 2015other● Neutral
Peel Hunt LLP appointed Nominated Adviser and Joint Broker with immediate effect, replacing Investec Bank plc in the adviser listing. Investec Bank Limited stays as JSE sponsor.
