30 Aug 2013investor presentation● Neutral
Presentation accompanying the FY13 results, given by Brown and Meeser. Only the legal disclaimer is readable; no figures or new information appear in the text provided.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 Aug 2013director officer appointment● Neutral
Non-executive director Bernard Pryor has been appointed CEO of African Minerals Limited. This is a disclosure of his outside role; no change to CoAL's board is announced.
31 July 2013quarterly activities report▼ Bad
June 2013 quarter: run-of-mine output fell to 188,921t and export sales halved to 136,172t after Vuna depleted and the rail closure. Cash was US$28.9m, with US$12.5m of Deutsche Bank debt left. Brown became executive chairman; Meeser and a new COO joined.
31 July 2013other● Neutral
Bushveld Minerals says CoAL has indicated it will accept Bushveld's takeover offer for Lemur Resources with its 32.5m shares (16.88%), subject to no superior proposal and escrow ending 24 August 2013. It suggests CoAL intends to sell this stake.
19 June 2013resource reserve update▲ GoodMajor
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.
4 June 2013asset acquisition disposition▼ BadMajor
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.
29 Apr 2013quarterly activities report▼ Bad
March 2013 quarter: run-of-mine output fell to 911,563t and export sales dropped 34% to 271,069t after the Vele flood and Matola derailment. Cash was US$67.4m after a US$12.5m Deutsche Bank repayment. A Vuna fatality occurred in April.
23 Apr 2013director officer appointment▼ BadMajor
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.
17 Apr 2013director officer appointment▲ GoodMajor
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.
12 Apr 2013production update▲ Good
Transnet confirmed the Matola line should reopen from 19 April 2013, though track repairs will continue for several months. CoAL still expects exports to resume in May, with force majeure remaining until rail capacity is normal.
11 Apr 2013production update▼ Bad
Transnet says supplementary rail work, about two weeks, is needed before the Matola line fully reopens. CoAL expects exports to resume in May 2013 and force majeure stays in place. Vele remains suspended; the full impact will be disclosed at quarter end.
27 Mar 2013material agreement▲ GoodMajor
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.
15 Mar 2013investor presentation● Neutral
Half-year results presentation for the six months to 31 December 2012. Only the disclaimer and cover are readable; the text is truncated, so no new information can be confirmed.
15 Mar 2013half year report● Neutral
Half-year commentary: CEO calls the US$100m Haohua partnership a key development. Vuna is due to deplete by March 2013, with 274 employees notified and a tender for Woestalleen sale drawing offers being evaluated. Mooiplaats was disrupted by strikes.
15 Mar 2013resource reserve update▲ Good
A Wood Mackenzie report says Makhado coal has potential to be world-class hard coking coal, citing a coke strength (CSR) of 64. Makhado could produce about 2Mtpa hard coking and 3Mtpa thermal coal. The feasibility study is expected in Q2 2013; the mining right is still awaited.
15 Mar 2013half year report▼ Bad
Half-year accounts to 31 December 2012: 2.68Mt run-of-mine coal, export sales down to 636,264t after the Mooiplaats strike and terminal upgrades, and RB1 prices down to an average US$87/t. Text is truncated, so financial results are not confirmed.
28 Feb 2013production update▼ BadMajor
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.
4 Feb 2013capital raising announcement● Neutral
Compliance notice for the issue of 197,934,063 shares to Haohua for the US$80m tranche. Admission is expected around 7 February, taking shares on issue to 1,048,368,613. It repeats the earlier announcement.
1 Feb 2013quarterly activities report▲ Good
December 2012 quarter: Haohua's US$100m was approved, with US$80m received 31 January. Run-of-mine output fell to 1.15Mt on the shutdown and Mooiplaats strike; export sales rose 83% to 411,292t. Cash was US$18.7m, or US$100.8m including the placement. Vuna depletes March 2013.
1 Feb 2013capital raising announcement▲ GoodMajor
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.
24 Jan 2013capital raising announcement● Neutral
CoAL issued 49,483,516 shares to Haohua for the initial US$20m tranche, bringing shares on issue to 850,434,550 after admission around 29 January. This is a formal compliance notice completing the first tranche.
22 Jan 2013production update▼ Bad
Heavy rain (500mm in five days) flooded Vele, stopping operations. CoAL expects normal operations to resume in about seven days if rain recedes. Vele holds a 5,500t thermal stockpile and produces 7,000 saleable tonnes a week.
10 Jan 2013capital raising announcement▲ Good
Haohua has received the Chinese approvals for its US$100m subscription at 25p, ahead of schedule. The US$20m initial tranche is already received. The US$80m remains subject to the 25 January shareholder vote, so the 35p price step-up no longer looms.
7 Jan 2013material agreement▲ GoodMajor
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.
24 Dec 2012agm notice● Neutral
The notice of an extraordinary general meeting on 25 January 2013 was posted to vote on shares for Haohua's US$100m investment. It includes a KPMG independent expert report on the US$80m conditional tranche, drawing on a Venmyn Deloitte asset valuation.
13 Dec 2012other● Neutral
CoAL reinstated the 178 dismissed Mooiplaats workers under an agreement with NUM: no pay for 3–12 December and one-year final written warnings. This resolves the dismissals; normal production is expected by the end of the following week.
10 Dec 2012regulatory community update▼ Bad
The Save Mapungubwe Coalition withdrew from its November 2011 memorandum with CoAL, alleging water-law non-compliance at Vele. CoAL disputes this, cites over 90% environmental audit compliance, and says Vele's licences are valid and operations are unaffected.
7 Dec 2012other▼ Bad
CoAL dismissed 178 Mooiplaats strikers, 48% of the workforce, on 6 December, with one week to appeal. The other 190 employees returned to run two of five underground sections, the plant and administration. This escalates the dispute that followed the October strike.
5 Dec 2012other▼ Bad
NUM-affiliated Mooiplaats workers began an unprotected strike after four colleagues were suspended over picketing breaches in the October strike. All four underground sections stopped. Management warned of job losses; the colliery employs 368, of whom 244 are NUM members.
29 Nov 2012capital raising announcement▲ Good
CoAL confirmed it received the US$20m previously held in escrow from Haohua. This is cash in hand; the shares for the initial placement are still to be issued under the earlier terms.