TIDMCZA
RNS Number : 0893U
Coal of Africa Limited
27 July 2015
ANNOUNCEMENT 27 July 2015
REPORT FOR THE QUARTER ENDED 30 JUNE 2015
Makhado Mining Right transforms CoAL
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 30 June 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 ("LTIs") recorded during the quarter (FY2015 Q3: nil).
-- The Department of Mineral Resources ("DMR") granted the
Company a New Order Mining Right ("NOMR") for the Makhado hard
coking and thermal coal project ("Makhado Project") as well as
Section 11 approval transferring the project from CoAL to its
subsidiary Baobab Mining & Exploration (Pty) Ltd
("Baobab").
Corporate and Financial Features
-- Agreement reached for the liability owing to Rio Tinto with
the balance to be paid in monthly instalments of at least $100,000
plus interest and the obligation settled by June 2017. During the
quarter the Company paid the interest accrued from May 2014 of $1.2
million (FY2015 Q3: nil) and $2.7 million (FY2015 Q3: $1.0 million)
in capital and the balance remaining at the end of the period was
$19.8 million.
-- Continued engagements with the Department of Water Affairs to
progress the application for the Makhado Project Integrated Water
Use Licence ("IWUL"), expected to be granted in Q3 CY2015.
-- During the quarter the Company issued 144 million shares at
GBP0.55 each raising $13.8 million completing the $65 million
(before charges and foreign currency movements) three stage
shareholder approved equity raise process.
-- Renegotiation of the Opgoedenhoop NOMR sale with the R17.4
million ($1.4 million) (including interest and VAT) owing to CoAL
payable in monthly instalments of at least R0.25 million ($0.02
million) with the balance due by the end of H1 CY2016.
-- Appointment of De Wet Schutte as Chief Financial Officer and
Executive Director during the quarter.
-- Available cash at period end was $17.8 million and restricted cash of $1.3 million.
Commenting today, Mr David Brown, Chief Executive Officer said:
"The granting of a mining right for CoAL's flagship Makhado Project
is an important milestone, given that the project has the potential
to stimulate domestic industrialisation once it reaches full
capacity. The Company can now move towards developing the colliery
which has the capability to produce hard coking and thermal coal,
thereby capitalising on its proximity to underutilised rail
infrastructure.
With these significant developments we are getting closer to
extracting value from this project. We continue to engage
constructively with the Department of Water and Sanitation and
anticipate that we will be granted an IWUL in due course. The
process of identifying potential strategic partners to provide
funding and technical expertise is on track. We expect to finalise
this process and the necessary off-take agreements with prospective
customers by the end of H1 CY2016."
QUARTERLY COMMENTARY
Makhado Coking Coal Project - Soutpansberg Coalfield (100% owned
- 74% post BBBEE transaction)
The Makhado Project recorded no LTIs (FY2015 Q3: no LTIs) during
the quarter.
During the quarter the DMR granted the Company a NOMR in terms
of the Mineral and Petroleum Resources Development Act (Act 28 of
2002) as well as Section 11 approval to transfer the right from
CoAL to Baobab, the company that will develop the colliery.
Makhado's 26 month construction phase is expected to begin in H2
CY2016 with a further four month ramp-up phase resulting in the
production of 5.5 Mtpa of saleable product. Consultations with
potential customers to secure off-take agreements for Makhado's
hard coking and thermal coal products and with potential project
funders continued during the quarter.
An interim court interdict seeking to halt any mining or
construction activity was issued against the Makhado Project during
Q2 FY2015. As one of the respondents the Company is preparing to
have the interim interdict set aside. CoAL does not anticipate that
the process will affect the Makhado Project construction
timetable.
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 LTIs during the period (FY2015 Q3: no LTIs).
During Q1 FY2015 the Company signed a Share Purchase Agreement
("SPA") with Blackspear Capital Proprietary Limited ("Blackspear")
for the disposal of the Mooiplaats Colliery for R250 million ($20.3
million). Blackpear was unable to agree terms with a financial and
operational partner to fund its acquisition resulting in the SPA
lapsing. The Company is continuing discussions with other potential
purchasers including Blackspear.
Vele Colliery - Limpopo (Tuli) Coalfield (100% owned)
The Vele coking and thermal coal colliery ("Vele Colliery")
recorded no LTIs during the quarter (FY2015 Q3: no LTIs).
The Company previously submitted applications to amend and renew
Vele's IWUL and expects these to be granted during H2 CY2015. CoAL
does not anticipate any delays as a result of the appeal lodged
against the colliery's amended and updated EA. The current Vele
Colliery IWUL is valid until March 2016 and the Company has delayed
the commencement of the plant modification construction pending the
approval of the amended IWUL and approved Water Use Licence for the
planned stream diversions, as well as an assessment of global coal
prices.
Greater Soutpansberg Project (MbeuYashu) (74% owned)
The MbeuYashu Project recorded no LTIs (FY2015 Q3: no LTIs)
during the period.
Authorised by
David Brown
Chief Executive Officer
27 July 2015
For more information contact:
Chief Executive +27 10 003
David Brown Officer Coal of Africa 8000
Chief Financial +27 10 003
De Wet Schutte Officer Coal of Africa 8000
+27 10 003
Celeste Harris Investor Relations Coal of Africa 8000
Endeavour Corporate +61 08 9316
Tony Bevan Company Secretary Services 9100
Company advisors:
Nominated Adviser
Matthew Armitt/Ross and +44 20 7418
Allister Broker Peel Hunt LLP 8900
Jos Simson/Emily Financial PR (United +44 20 7920
Fenton Kingdom) Tavistock 3150
Charmane Russell/Jane Financial PR (South Russell & Associates +27 11 880
Kamau Africa) 3924 or
+27 82 372
5816
Investec Bank Limited is the nominated JSE Sponsor
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and
mining company operating in South Africa. CoAL's key projects
include the Vele Colliery (coking and thermal coal), the Greater
Soutpansberg Project /MbeuYashu, including CoAL's Makhado Project
(coking and thermal coal).
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
(#) CoAL's interest will reduce to 74% owned on completion of
the Broad Based Economic Empowerment transaction
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSEFFMLFISEEW
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