TIDMCZA
RNS Number : 0437L
Coal of Africa Limited
23 April 2015
ANNOUNCEMENT 23 April 2015
REPORT FOR THE QUARTER ENDED 31 MARCH 2015
Makhado Empowerment Structure Finalised
Coal of Africa Limited ("CoAL" or "the Company") which operates
in South Africa, together with its subsidiaries, hereby provides
its update for the quarter ended 31 March 2015. All figures are
denominated in United States dollars unless otherwise stated. A
copy of this report is available on the Company's website,
www.coalofafrica.com.
Salient Operational Features
-- No lost-time injuries recorded during the quarter (FY2015 Q2: nil).
-- Approval granted for the amended and updated Environmental
Authorisation ("EA") for the Vele Colliery to include the
anticipated plant modifications while the application for the
amendment and extension of the IWUL for the colliery is still
pending following which the Company will make a decision on the
timing of the start of the plant modifications.
Corporate and Financial Features
-- Submission to the Department of Mineral Resources ("DMR")
after the conclusion of agreements with broad based black economic
empowerment ("BBBEE") partners to acquire up to 26 per cent of the
Makhado Project.
-- The Makhado BBBEE partners have two years to raise sufficient
capital to acquire their interests in the project with the final
amount payable subject to due diligence and will be negotiated with
the Company. The transaction ensures that the Makhado Project
complies with mining legislation in South Africa and is an
important step in the process for the granting of a New Order
Mining Right ("NOMR").
-- The liability owing to Rio Tinto was reduced during the
quarter on the payment of $1.0 million (FY2015 Q2: $6.3 million)
while discussions continued on the settlement of the remaining
capital balance of $22.5 million.
-- Continued discussions with stakeholders including the
communities and the Department of Mineral Resources in advancing
the award of the Makhado Project NOMR.
-- The Company continued to engage with the Department of Water
Affairs to progress the application for the Makhado Project
Integrated Water Use Licence ("IWUL"), which CoAL anticipates
should be issued after the receipt of the NOMR.
-- Receipt of R1.5 million ($0.13 million) for the sale of the
Opgoedenhoop NOMR with the balance of R17.6 million ($1.5 million)
(including VAT) due by the end of H1 CY2015.
-- Resignation of Michael Meeser as Chief Financial Officer and
Executive Director during the quarter.
-- Available cash at period end was $13.5 million and restricted cash of $2.1 million.
Post Period Event
-- An appeal against the Vele Colliery amended and updated EA
was lodged with the Department of Environmental Affairs ("DEA")
during April 2015.
Commenting today, Mr David Brown, Chief Executive Officer said:
"The Makhado Project empowerment structure was formalised during
the quarter and completes one of the last requirements for the
granting of a mining right for the project. The structure results
in communities residing in the vicinity of the project acquiring 20
per cent of the project with a further 6 per cent acquired by
Historically Disadvantaged South Africans. The Company expects that
the Makhado Project mining right will be granted during H1 CY2015,
a critical step to unlock the significant value of CoAL's flagship
hard coking and thermal coal asset."
QUARTERLY COMMENTARY
Mooiplaats Colliery - Ermelo Coalfield (74% owned)
The Mooiplaats thermal coal colliery ("Mooiplaats Colliery") was
placed on care and maintenance during the September 2013 quarter
and recorded no lost time injuries ("LTIs") during the period
(FY2015 Q2: no LTIs).
During Q1 FY2015 the Company signed an SPA with Blackspear
Capital Proprietary Limited ("Blackspear") for the disposal of the
Mooiplaats Colliery for R250 million ($20.7 million). Blackspear
has until 30 April 2015, on a non-exclusive basis, to agree terms
with a financial and operational partner to fund its acquisition of
Mooiplaats. During the quarter the Company commenced discussions
with other potential purchasers.
Vele Colliery - Limpopo (Tuli) Coalfield (100% owned)
The Vele coking and thermal coal colliery ("Vele Colliery")
recorded no LTIs during the quarter (FY2015 Q2: no LTIs).
The Company's applications to amend the colliery's EA to include
the plant modifications were approved by the DEA during the
quarter. The Company previously submitted applications to amend and
renew Vele's IWUL and is confident these will be received during H1
CY2015. The current Vele Colliery IWUL is valid until March 2016
and the Company has delayed the commencement of the plant
modification construction to Q3 CY2015 pending these approvals,
which also gives the Company further time to assess the outlook for
coal prices.
Makhado Coking Coal Project - Soutpansberg Coalfield (100% owned
- 74% post BBBEE transaction)
The Makhado coking coal project ("Makhado Project") recorded no
LTIs (FY2015 Q2: no LTIs) during the quarter.
South African mining legislation requires that mining and
exploration projects have a minimum 26% black economic empowerment
shareholding and CoAL previously signed a Memorandum of Agreement
to enable seven local communities (the "Communities") to acquire a
20% interest in the Makhado Project. During the quarter the Company
signed acquisition agreements with the Makhado Colliery Community
Development Trust (the "Trust"), an umbrella trust that will ensure
communities are beneficiaries, and Yoright Investments (Pty) Ltd
("Yoright") formed by black entrepreneur Mike Nkuna whose
shareholders will include other Historically Disadvantaged South
Africans. In terms of the acquisition agreements the Trust and
Yoright have two years to raise sufficient funding to acquire their
respective twenty per cent and six per cent interests in the
project, with the final amount payable subject to due diligence and
will be negotiated with the Company.
An interim court interdict was issued against the Makhado
Project during Q2 FY2015 seeking to halt any mining or construction
activity on the site. During the quarter the Company, as one of the
respondents, continued preparation to have the interim interdict to
set aside and does not anticipate that this process the affect the
timetable for the mine to commence commercial production during
CY2019.
Greater Soutpansberg Project (MbeuYashu) (74% owned)
The MbeuYashu Project recorded no LTIs (FY2015 Q2: no LTIs)
during the period.
Corporate Update
During H2 CY2014 CoAL received $46 million on completion of the
first two stages of the shareholder approved $60 million equity
placement process. The attached Appendix 5B excludes potential
proceeds from stage 3 of the equity placement process which is
still anticipated by the end of April 2015.
Authorised by
David Brown
Chief Executive Officer
23 April 2015
For more information contact:
Chief Executive +27 10
David Brown Officer Coal of Africa 003 8000
Chief Financial +27 10
Michael Meeser Officer Coal of Africa 003 8000
+27 10
Celeste Harris Investor Relations Coal of Africa 003 8000
Endeavour
Corporate +61 08
Tony Bevan Company Secretary Services 9316 9100
Company advisors:
Financial
Jos Simson/Emily PR (United +44 20
Fenton Kingdom) Tavistock 7920 3150
Chris Sim/George
Price/Jeremy Nominated Investec Bank +44 20
Ellis Adviser plc 7597 5970
Charmane Russell/Jane Financial Russell & +27 11
Kamau PR (South Associates 880 3924
Africa) or
+27 82
372 5816
Investec Bank Limited is the nominated JSE Sponsor
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration and development
company operating in South Africa. CoAL's key projects include the
Vele Colliery (coking and thermal coal), Makhado Project (coking
and thermal coal) and the Greater Soutpansberg Project
/MbeuYashu.
Tenements held by CoAL and its Controlled Entities
Project Name Tenement Number Location Interest Change in quarter
-------------------------------- -------------------------------- ------------- --------- ------------------
Chapudi Project* Albert 686 MS- Limpopo 74%
Bergwater 712 MS-- 74%
Remaining Extent and Portion 2
of Bergwater 697 MS-- 74%
Blackstone Edge 705 MS 74%
Remaining Extent & Portion 1 of
Bluebell 480 MS- 74%
Remaining Extent & Portion 1 of
Bushy Rise 702 MS-- 74%
Castle Koppies 652 MS-- 74%
Chapudi 752 MS -- 74%
Remaining Extent, Portions 1, 3
& 4 of Coniston 699 MS-- 74%
Driehoek 631 MS-- 74%
Remaining Extent of
Dorps-rivier 696 MS-- 74%
Enfield 512 MS (consolidation
of Remaining Extent of Enfield
474 MS, Brosdoorn 682 MS &
Remaining
Extent of Grootvlei 684 MS)-- 74%
Remaining Extent and Portion 1
of 74%
Grootboomen 476 MS- 74%
Grootvlei 684 MS-- 74%
Kalkbult 709 MS 74%
Remaining Extent, Remaining
Extent of Portion 2, Remaining
Extent of Portion 3, Portions
1,
4, 5, 6, 7 & 8 of Kliprivier
692 MS- 74%
Remaining Extent of Koodoobult
664 MS- 74%
Koschade 657 MS (Was Mapani Kop
656 MS)- 74%
Malapchani 659 MS- 74%
Mapani Ridge 660 MS- 74%
Melrose 469 MS- 74%
Middelfontein 683 MS- 74%
Mountain View 706 MS- 74%
M'tamba Vlei 654 MS 74%
Remaining Extent & Portion 1 of
Pienaar 635 MS- 74%
Remaining Extent & Portion 1 of
Prince's Hill 704 MS- 74%
Qualipan 655 MS- 74%
Queensdale 707 MS- 74%
Remaining Extent & Portion 1 of
Ridge End 662 MS- 74%
Remaining Extent & Portion 1 of
Rochdale 700 MS- 74%
Sandilands 708 MS- 74%
Portions 1 & 2 of Sandpan 687
MS-- 74%
Sandstone Edge 658 MS- 74%
Remaining Extent of Portions 2
& 3 of Sterkstroom 689 MS-- 74%
Sutherland 693 MS- 74%
Remaining Extent & Portion 1 of
Varkfontein 671 MS-- 74%
Remaining Extent, Portion 2,
Remaining Extent of Portion 1
of Vastval 477 MS- 74%
Vleifontein 691 MS- 74%
Ptn 3, 4, 5 & 6 of Waterpoort
695 MS-- 74%
Wildebeesthoek 661 MS- 74%
Woodlands 701 MS- 74%
-------------------------------- ---------------------------------------------- --------- ------------------
Kanowna West and M27/41 Coolgardie^ 23.68%
-------------
Kalbara M27/47 23.68%
-------------
M27/59 23.68%
M27/72,27/73 23.68%
M27/114 23.68%
M27/181 21.31%
M27/196 23.68%
M27/414,27/415 23.68%
P27/1826-1829 23.68%
P27/1830-1842 23.68%
P27/1887 23.68%
-------------------------------- ---------------------------------------------- --------- ------------------
Abbotshall Royalty ML63/409,410 Norseman^ Royalty
-------------------------------- -------------------------------- ------------- --------- ------------------
Kookynie Royalty ML40/061 Leonora^ Royalty
ML40/135,136 Royalty
-------------------------------- -------------------------------- ------------- --------- ------------------
Remaining extent, Remaining
Extent of portions 1, 5 and 11
and portions 4, 6, 9, 10, 12
and
13 of the farm Holfontein 138
Holfontein IS Mpumalanga 100%
-------------------------------- -------------------------------- ------------- --------- ------------------
Makhado Project Fripp 645 MS Limpopo 100%
Lukin 643 MS 100%
Remaining Extent and Portion 1
of Overwinning 713 MS 100%
Salaita 188 MT 100%
Tanga 648 MS 100%
Remaining Extent, Portion 1 and
Portion 2 of the farm Windhoek
649 MS 100%
Generaal Project Beck 568 MS-- Limpopo 74%
Bekaf 650 MS- 74%
Remaining Extent & Portion 1 of
Boas 642 MS- 74%
Chase 576 MS- 74%
Coen Britz 646 MS- 74%
Fanie 578 MS- 74%
Gray 189 MT 100%
Portions 1, 2 and Remaining
Extent of Generaal 587 MS- 74%
Joffre 584 MS- 74%
Juliana 647 MS 74%
Kleinenberg 636 MS- 74%
Remaining Extent of Maseri Pan
520 MS- 74%
Remaining Extent and Portion 2
of Mount Stuart 153 MT-- 100%
Nakab 184 MT-- 100%
Phantom 640 MS-- 74%
Riet 182 MT-- 100%
Rissik 637 MS- 100%
Salaita 188 MS- 74%
Schuitdrift 179 MT- 100%
Septimus 156 MT-- 100%
Solitude 111 MT- 74%
Stayt 183 MT-- 100%
Telema 190 MT 100%
Remaining Extent & Portion 1 of
Terblanche 155 MT-- 100%
Van Deventer 641 MS- 74%
Wildgoose 577 MS- 74%
-------------------------------- ---------------------------------------------- --------- ------------------
Mopane Project* Ancaster 501 MS-- Limpopo 100%
Banff 502 MS- 74%
Bierman 599 MS- 74%
Cavan 508 MS 100%
Cohen 591 MS-- 100%
Remaining Extent, Portions 1 &
2 of Delft 499 MS- 74%
Dreyer 526 MS-- 74%
Remaining Extent of Du Toit 563
MS- 74%
Faure 562 MS 74%
Remaining Extent and Portion 1
of Goosen 530 MS -- 74%
Hermanus 533 MS- 74%
Jutland 536 MS-- 100%
Krige 495 MS- 74%
Mons 557 MS- 100%
Remaining Extent of Otto 560 MS
(Now Honeymoon)- 74%
Remaining Extent & Portion 1 of
Pretorius 531 MS- 74%
Schalk 542 MS- 74%
Stubbs 558 MS- 100%
Ursa Minor 551 MS-- 74%
Van Heerden 519 MS-- 74%
Portions 1, 3, 4, 5, 6, 7, 8,
9, Remaining Extent of Portion
10, Portions 13, 14, 15, 16,
17, 18, 19, 20, 21, 22, 23,
24, 26, 27, 29, 30, 35, 36,
37, 38, 39, 40, 41, 44, 45,
46, 48,
49, 50, 51, 52 & 54 of Vera
815 MS 74%
Remaining Extent of Verdun 535
MS- 74%
Voorburg 503 MS-- 100%
Portions 1, 9,14,17,18,19,20 &
Mooiplaats Colliery and Remaining Extent of Mooiplaats
prospects 290 IT Mpumalanga 74%
Portion 2, 3 and Remaining
Extent of Klipbank 295 IT 74%
Portions 1, 2 and Remaining
Extent of Adrianople296 IT 74%
Portions 2 & 3 of Willemsdal
330 IT 74%
Portions 2, 3, 4 & Remaining
Extent) of De Emigratie 327 IT 74%
Remaining Extent and Portions
2, 5, 8,10 & 13 of
Buhrmansvallei 297 IT 74%
Klipfontein 442 IT 74%
Portions of Overvlakte 125 MS
(Remaining Extent, 3, 4, 5, 6,
Vele Colliery and prospect 13, 14) Limpopo 100%
Bergen Op Zoom 124 MS 100%
Semple 155 MS 100%
Voorspoed 836 MS 100%
Alyth 837 MS 100%
Lizzuela 62 MS 100%
Patracia 65 MS 100%
Hacyon 69 MS 100%
-------------------------------- ---------------------------------------------- --------- ------------------
Certain portions of Unsurveyed
Tshikunda State Land known as Mutale Limpopo 60%
-------------------------------- -------------------------------- ------------- --------- ------------------
Coal bed methane Adelaide 91 MT Limpopo 50%
Adieu 118 MT 50%
Alicedale 138 MT 50%
Armstice 120 MT 50%
Bergwater 697 MS 50%
Bergwater 712 MS 50%
Blackstone Edge 705 MS 50%
Bushy Rise 702 MS 50%
Chapudi 752 MS 50%
Charlotte 90 MT 50%
Chase 576 MS 50%
Cross 117 MT 50%
Doppie 95 MT 50%
Ettie 33 MT 50%
Fanie 578 MS 50%
Feskraal 85 MT 50%
Folorodwe 79 MT 50%
Fripp 645 MS 50%
Gray 189 MT 50%
Hettey 93 MT 50%
Jeannette 77 MT 50%
Joffre 584 MS 50%
Kalkbult 709 MS 50%
Laura 115 MT 50%
Lukin 643 MS 50%
Magazasand 123 MT 50%
Malapchani 659 MS 50%
Mountainview 706 MS 50%
Mount Stuart 153 MT 50%
Nakab 184 MT 50%
Naus 178 MT 50%
Neltox 92 MT 50%
Phantom 640 MS 50%
Prince's Hill 704 MS 50%
Queensdale 707 MS 50%
Riet 182 MT 50%
Rochdale 700 MS 50%
Rynie 158 MT 50%
Salaita 188 MT 50%
Schuitdrift 179 MT 50%
Septimus 156 MT 50%
Stayt 183 MT 50%
Suzette 32 MT 50%
Tanga 648 MS 50%
Telema 190 MT 50%
Terblanche 155 MT 50%
Trevenna 119 MT 50%
The Duel 186 MT 50%
Truida 76 MT 50%
Van Deventer 641 MS 50%
Wendy 86 MT 50%
Wildgoose 577 MS 50%
Windhoek 649 MS 50%
Zisaan 31 MT 50%
Ziska 122 MT 50%
Portion of Unsurveyed state
land 50%
-------------------------------- ---------------------------------------------- --------- ------------------
* Form part of the Greater Soutpansberg Project
- Lapsed - Mining Right Application Lodged
-- Valid - Mining Right Application Lodged
Tenement located in the Republic of South Africa
^ Tenement located in Western Australia
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCELLFLEZFXBBE
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