CEY - Centennial Coal

[imajica]

Australian coal producer Centennial Coal Ltd said today it has accepted Xstrata Ltd's $479 million takeover bid for Austral Coal Ltd.

Centennial said in a statement that Xstrata's bid for Austral Coal, the owner of the Tahmoor mine in southern NSW, was at $1.83 a share.

Centennial has an 86 per cent stake Austral Coal.

Centennial, which sold its Anvil Hill project to Xstrata for $557 million in September, said proceeds from the sale of Anvil and Austral would be used to reduce the group's borrowing by about $400 million.

The company also plans to return up to $2.00 for each Centennial share held by shareholders.

 

[rustyheela]

CEY

was just wondering if any stock holders could answer the question about their $1.88 capital return? is it correct that as the return goes "ex" if the stock is sold at the new lower price can a capital loss be claimed? is this correct or not as i am a little confused. any thoughts or opinions from current holders would be appreciated.
Thanks

 

[michael_selway]

Re: CEY

was just wondering if any stock holders could answer the question about their $1.88 capital return? is it correct that as the return goes "ex" if the stock is sold at the new lower price can a capital loss be claimed? is this correct or not as i am a little confused. any thoughts or opinions from current holders would be appreciated.
Thanks

Hm when it goes '"ex", market price will drop around $1.88

However your "Cost Base" when calulating CGT will also be reduced bu $1.88

So it is unlikely you will be making a loss unless you bought at the peak!

Correct me if i'm wrong

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 10.6 15.5 27.6 26.9
DPS 8.0 10.0 13.5 13.9

What a great stock this has been

thx

MS

 

[noirua]

Well done m_s and others who held on to this one. I sold out for $3.94 in mid-September and it looks to be nearly a $ better now. Will watch this one when it goes ex the $1.88 cash return and 12c extra divi. Good Luck - noi

 

[tronic72]

Was just sorting my watch list and noticed this.

CEY 40% drop today. Anyone know what has happened?????

 

[rhen]

Hi Tron

Check your mail for late December.
ex capital return date 14/1/08 of $1.88 per share

regards
rhen

 

[trinity]

CEY has dropped ~41% to 2.89 from 4.9 last Friday.

newbie question: What does ex capital return mean?

Thanks.

 

[oldblue]

CEY has dropped ~41% to 2.89 from 4.9 last Friday.

newbie question: What does ex capital return mean?

Thanks.

Means that if you buy now, buyer doesn't get the capital return (payment) of $1-88 per share. It would be paid to the seller of the shares. Hence the drop in sp.

 

[rhen]

I think it would be best if you went to the CEY announcements.
Look up those dated 20/12/2007 where relevant info is given including a telephone number for any queries
Your broker or online broker will have the information
try ASX:
http://www.asx.com.au/asx/statistic...ssuerCode=CEY&timeFrameSearchType=Y&year=2007

 

[noirua]

Centennial is one of the few coal stocks not to bounce that much on Friday. Should make up for that next week. Capital return is now complete and Anvil Hill out of the way. Selling Anvil Hill was probably great news, for Xstrata that is, anyway, all those loans or most of them are paid off now.

 

[michael_selway]

Centennial is one of the few coal stocks not to bounce that much on Friday. Should make up for that next week. Capital return is now complete and Anvil Hill out of the way. Selling Anvil Hill was probably great news, for Xstrata that is, anyway, all those loans or most of them are paid off now.

Yeah but CEY has hardly fallen last week! while other are still below their peaks!

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 10.6 16.0 34.3 42.5
DPS 8.0 9.2 13.0 15.0

thx

MS

 

[reece55]

It's been a great run for CEY since their capital return and divestment, but she's starting to look expensive here.....

Fairly bearish move today, high volume, close on the lows and a very tall candle...... reeks of distribution to me....

Anyone else cashing out???? Nick, I know this has been one of your longs, still in?

Cheers

 

[michael_selway]

It's been a great run for CEY since their capital return and divestment, but she's starting to look expensive here.....

Fairly bearish move today, high volume, close on the lows and a very tall candle...... reeks of distribution to me....

Anyone else cashing out???? Nick, I know this has been one of your longs, still in?

Cheers

Hm stock still looks great and its really in teh right industry at the right time

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 10.6 16.0 37.3 45.3
DPS 8.0 9.0 15.6 20.2

thx

MS

 

[dj_420]

CEY keeps showing a lot of strength, volume was well up today on a 4% rise. Maybe starting to look cheap on peer comparison, after all they do have 1.5 billion tonnes of coal and producing 15 mt.

I jumped on board for a long term buy. I am hoping we can start to see some production expansion and get more of the tonnage overseas.

 

[nomore4s]

CEY keeps showing a lot of strength, volume was well up today on a 4% rise. Maybe starting to look cheap on peer comparison, after all they do have 1.5 billion tonnes of coal and producing 15 mt.

I jumped on board for a long term buy. I am hoping we can start to see some production expansion and get more of the tonnage overseas.

While knowing nothing about the fundimentals, the chart is showing some signs of weakness imo. Starting to look like distribution to me. A lot of upthrusts and weak closes over the last couple of months, every attempt to move up lately appears to have strong selling into it.

Just my , good luck to all.

 

[michael_selway]

CEY keeps showing a lot of strength, volume was well up today on a 4% rise. Maybe starting to look cheap on peer comparison, after all they do have 1.5 billion tonnes of coal and producing 15 mt.

I jumped on board for a long term buy. I am hoping we can start to see some production expansion and get more of the tonnage overseas.

Hm its still not bad, btw do you mean 1.5 billion tonnes of coal even after the sale on Anvil?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 10.6 15.7 49.2 64.3
DPS 8.0 10.0 20.0 28.3

thx

MS

 

[dj_420]

Hm its still not bad, btw do you mean 1.5 billion tonnes of coal even after the sale on Anvil?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 10.6 15.7 49.2 64.3
DPS 8.0 10.0 20.0 28.3

thx

MS

Attached is the breakdown of CEY resources, even without Anvil Hill we have total resources (Measured, indicated and inferred) at 2.6615 billion tonnes of coal. Not bad really. Anvil Hill accounted for 500.2 million tonnes.

In the reserves area we have 520.1 million tonnes when taking out Anvil Hill which was 158.0 million tonnes of CEY reserves.

So although Anvil Hill was a substantial resource CEY still has a great deal of coal left. I would like to see some more of those resources been converted into reserves.

The other thing I would like to see happen is upgraded production. Currently the ROM was 15.2 million tonnes on a YTD basis. Still a substantial mining operation.

 

[dj_420]

Many people on this? It has been running for a while but no one is talking.

Up a couple of percent on above average volume again. Another good rise and it will be making new highs.

 

[dj_420]

Not many on this one but had nice 11% rise today. I like this one for the long term with around 15 million tonnes per annum produced is one of Australia's largest coal miners with many long term contracts been unwound over the next two years.

CEY will increasingly put tonnage towards exports rather than the domestic market. I think they have consolidated nicely between the 4.50 and 4.70 period and broken out today with a number of coal miners.

 

[michael_selway]

Not many on this one but had nice 11% rise today. I like this one for the long term with around 15 million tonnes per annum produced is one of Australia's largest coal miners with many long term contracts been unwound over the next two years.

CEY will increasingly put tonnage towards exports rather than the domestic market. I think they have consolidated nicely between the 4.50 and 4.70 period and broken out today with a number of coal miners.

Hm, not many on this??? I'm on it, so is Noirua i think!!!

Anyway the thing is that the perception that "not many are on it", is actually good as thsi means that once everyone gets on it, prices will go even higher?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 10.6 16.5 48.2 64.7
DPS 8.0 10.0 20.0 29.1

Thanks

MS