31 May 2013director officer appointment● Neutral
Michael Wotherspoon, formerly CFO of Tinkler Group Holdings and Actis, is appointed CFO from 11 June 2013. This fills the vacancy left by Louis Chait's April resignation, ending the CFO search.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 May 2013production update▲ Good
Overburden removal has started at South Gobi by contractor GrandPower; the first test pit gave coal close to Prime Coking Coal. Two remaining test pits are delayed to mid-June by hard digging. Off-take talks continue and camp construction is expected in July.
7 May 2013director officer appointment● Neutral
Craig Ransley, a founding figure who had been on leave since April, resigns as non-executive director, saying the company's shift from explorer to producer suits other pursuits. Alternate Kon Tsiakis, a commercial litigation partner, replaces him. Ransley remains a major shareholder.
1 May 2013debt financing▲ GoodMajor
Guildford said the funding from OCP Asia under its convertible bond facility was received on 30 April 2013. The facility's terms had been announced on 28 March 2013.
1 May 2013quarterly activities report● Neutral
March quarter report restates known events: Mongolian mining licences and land permits granted for North and East Pits, Clyde Park mining lease lodged, Springsure maiden resource, and the A$40m convertible note with drawdown starting April. Issued shares are shown as 615.0m.
30 Apr 2013production update● Neutral
Pre-mining at the South Gobi North Pit continues to plan: the first test pit is nearly complete and two more are due within 3 weeks. Large-scale overburden stripping is set for end-May, and a final government inspection is expected in August before commercial production.
30 Apr 2013quarterly activities report▼ Bad
March quarter cash cost was $7.5m, leaving $5.6m at 31 March 2013, down from $13.2m. The 74m consideration shares were issued 4 March at $0.525. Year-to-date net cash outflows were large, so the new convertible funding matters.
10 Apr 2013director officer appointment▼ Bad
Non-executive directors Craig Ransley and Mike Chester take leave of absence while they are witnesses at a NSW ICAC inquiry, which the company says is unrelated to Guildford. Alternate directors Kon Tsiakis and Gary Humphrys cover for them.
8 Apr 2013regulatory community update● Neutral
Guildford is named a key proponent, with Mackay Sugar, in a Commonwealth-funded study of a base load power station near Pentland. Funding is up to $2.5m. It is a feasibility study only, with no commitment by Guildford.
3 Apr 2013director officer appointment▼ Bad
Finance Director and CFO Louis Chait resigns effective 12 April 2013 to join Glencore. Financial controller Kristy Bailey becomes acting CFO and company secretary. Mark Reynolds replaces Mark Turner as North Queensland Project Director. Sydney office closes and a Townsville office opens.
28 Mar 2013production update▲ GoodMajor
Earthmoving contractors begin mobilising to the South Gobi North Pit for test pits, site works and overburden stripping. The new A$39.4m senior secured 12% convertible note, from OCP Asia funds, will repay the Gleneagle bond and extend debt maturity to September 2014. Conversion price is $0.45 to $0.75.
27 Mar 2013debt financing● NeutralMajor
Guildford arranges A$40m of convertible notes for operations and working capital, drawn once conditions are met. If notes are repaid before the 18-month maturity, noteholders get extra warrants priced between $0.45 and $0.75. This follows the $10m Gleneagle bond from October 2012.
15 Mar 2013half year report● Neutral
Half-year loss to 31 December 2012 was $5.67m (prior period $17.8m). Terra Energy is now 100% and Clyde Park stake rose to 64.4%. Coking coal production is forecast for the first half of calendar 2013. Mostly restates known events.
27 Feb 2013agm notice● NeutralMajor
Shareholders approved both resolutions at the 27 February EGM, varying the TheChairmen1 agreement and issuing the 74m consideration shares. Votes for were about 143.4m against 2.4m. This ends the remaining success fees.
26 Feb 2013director officer appointment▲ GoodMajor
Peter Westerhuis becomes Group Managing Director from 27 February 2013, ending the search that began when Michael Avery resigned. Craig Ransley returns to non-executive director. Mongolian nominee Mr Tsogt joins the board under the Terra Holdings deal.
25 Feb 2013resource reserve update▲ GoodMajor
Springsure's maiden resource is 252.6Mt Inferred thermal/PCI coal, above the 60-235Mt target. It triggers no payment to Bluestone. Guildford holds 50.69% and is operator, with marketing rights and a 5.25% sales fee. Company-wide resources now stated at 2.52Bt.
8 Feb 2013other● Neutral
Tiaro Coal re-releases Guildford's Clyde Park upgrade to a 677Mt Inferred and 50.7Mt Indicated resource. It states Tiaro's indirect stake is 29.2% and Guildford's is 64.4%, and that the Zhejiang Energy sale is still in due diligence. Nothing new on Guildford.
8 Feb 2013resource reserve update▲ GoodMajor
Clyde Park gets a maiden Indicated resource of 50.7Mt and Inferred rises to 677Mt (from 623Mt). Hughenden Indicated rises to 132.9Mt while Inferred falls to 1,076Mt (from 1,619Mt). Peter Westerhuis is hired as Mongolian CEO. Group total is 2,145.3Mt.
31 Jan 2013quarterly activities report● Neutral
December quarter report restates known items: Clyde Park mining lease application, 623Mt Inferred, South Gobi delays from coal found under the waste dump site, Terra Energy now 100%, Leighton on East Pit. Shares on issue 561.0m. Mining is still not started.
25 Jan 2013agm notice● Neutral
Full EGM booklet for 27 February 2013 repeats the 22 January proposal: 74m shares at $0.525 would end all remaining TheChairmen1 success fees (up to $100m in total; first $20m instalment paid Aug 2012). The $2.5m a year management fee continues. Board says it removes dilution overhang.
23 Jan 2013agm notice● Neutral
Notice of the Extraordinary General Meeting on 27 February 2013 is lodged, to vote on varying the TheChairmen1 management agreement and issuing the 74m consideration shares. It formalises the 22 January proposal.
22 Jan 2013material agreement● NeutralMajor
Guildford proposes to end all future TheChairmen1 success fees (previously $20m per 100Mt Indicated, up to $100m) by issuing it 74m shares. PwC calls it fair and reasonable. Needs shareholder approval at an EGM on 27 February 2013.
21 Jan 2013director officer appointment▼ BadMajor
Managing Director Michael Avery resigns immediately due to ill health. Founder Craig Ransley becomes Executive Deputy Chairman until a new MD is found; the board says it is in advanced talks with candidates.
9 Jan 2013production update▼ BadMajor
South Gobi mining has not started, missing the late-November 2012 target. Drilling for a waste dump unexpectedly found coal, forcing a redesign and new permits, and local elections then delayed approvals. Contractors are ready pending ratification; 2013 production is still forecast.
3 Jan 2013other● Neutral
Bluestone Global completes the sale of its Guildford Springsure receivable to Gleneagle for $6.75m and issues Gleneagle 21m options. It is a third-party administrative notice with no change to Guildford's terms.
24 Dec 2012other● Neutral
Bluestone Global agrees to sell, for $6.75m, its contingent receivable from Guildford's Springsure purchase to Gleneagle, which also provided Guildford's $10m bond. Gleneagle may put it back after 31 Dec 2013. This is third-party news; Guildford's obligation of up to $9m is unchanged.
24 Dec 2012admin correction● Neutral
Guildford clarifies that its Asciano memorandum of understanding is not connected to Clyde Park Coal or Tiaro, contrary to what Tiaro's release implied. Any transport solution is for Guildford projects at its discretion.
21 Dec 2012other● Neutral
Tiaro Coal re-releases Guildford's Asciano memorandum of understanding announcement, linking it to Clyde Park. It adds no new information; Guildford corrects the link three days later.
21 Dec 2012material agreement▲ Good
Guildford signs a non-binding memorandum of understanding with Asciano to investigate a pit-to-port rail and port transport solution for the Northern Galilee Basin. It is a study step, with no costs or commitments stated.
19 Dec 2012other● Neutral
Tiaro Coal, 30.6% holder of Clyde Park, re-releases Guildford's news of the mining lease application. It says Tiaro has agreed to sell its interest to Zhejiang Energy, which is doing due diligence. Nothing new on Guildford itself.