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KRL - Kangaroo Resources

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International coal producer Kangaroo Resources Limited (“KRL” or the “Company”) is pleased to advise that it has completed a funding agreement with key institutional investors to raise US$14 million through a convertible note instrument to further develop coal production at its flagship projects in Indonesia.

More here on the fund raising here

http://imagesignal.comsec.com.au/asxdata/20100701/pdf/01075773.pdf
 
Article in todays Fiancial Review
Bidders rally around Kangaroo Project:

Coal deals aren't just coming thick and fast in Australia. Recent Agreements by Riversdale mining to sell part of its Mozambique project to Chinese steelmaker Wuhan Iron and Steel group Corp and by US miner INR to sell itself to Cliffs Naturla resources are examples of transactions occuring in other parts of the world. In that vein KRL is testing the appetite for a potential sale of its GPK thermal coal mine in Indonesia (GPK shipped its first coal in January) Macquarie Capital is conducting the sales process and indicative bids have been received from 10 parties, predominantly from Asia. Kangaroo owns several other projects and has a market value of GPK to third parties is said to be significant in the context of the company's overall valuation. Kangaroo has proven there's 248 million tonnes of resources at GPK and is attempting to ramp up production to 100,000 tonnes a month by early 2011. By 2010 it hopes to be mining 3 million to 4 million tonnes a year. Some think it is intriguing that KRL would sell GPK, given it is its first producing asset. But the idea would be to use the proceeds to focus on other indonesian ventures, such as its new Mamahak coking coal mine that it bought from Robert Friedland's South Gobi energy resources and the larger KI coking coal project.

Kangaroo has an exploration target of 200 million to 140 million tonnes or resources at KI, with expectations it could release a maiden resource this year and turn the project into a hub for broader coal operations in Indonesia.

KRL recentlt raised US$ 14 million (A$16 million) in conv. notes, primarily from US investors to help ramp up production at Mamahak. The notes carry a 2 year term and convert at 13.3 cents a share, with interest paid at 10% a year.

KRL shares closed at 12.5 c on Friday meaning if iot selss GPK for a good price, the notes could prove a very good investment.
Click to expand...

Then just prior to market open KRL realises it has a leak and goes into a trading halt. Went back on again about 2 this arvo with a release in answer to a query from the ASX.

The short of it. They have about 7 coal projects and look like selling one (thermal coal) in the next week or so which should give ample funds for the development of a very good coking coal project.

I am a long term holder. At current price could be worth putting a ruler over.

I do not give advice and have been wrong in the past.
 
21% up today. i guessing on the news from above..

or is there some news i cant find on the webs thats driving price?
 
AngusSmart said:
21% up today. i guessing on the news from above..

or is there some news i cant find on the webs thats driving price?
Click to expand...

No news, but some very interesting indicators early in the week. See my post July 12 herein.

I would guess that the pending sale of the asset is about to go through. From what we can tell the value of this will be in the region of 10 cents a share. However the true value will be the funds available to start production from the very good quality coking coal projects.

Agree, a very good break today
 
Thanks for the updates Explod, good to see that things are happening, I am still holding and looking forward to new developments.
Cheers
 
JUNE 2010 QUARTERLY ACTIVITIES REPORT
HIGHLIGHTS​
COAL PROJECTS – INDONESIA
Operational ramp-up continues at Mamahak Coking Coal Project towards targeted 50,000 tonnes per month. Shipment of 50,000 tonnes Mamahak coal currently being transported down Mahakam River for first KRL export sale.
Mining operations to be outsourced at Mamahak with initial tenders from contractors due. Strategy for GPK Project under consideration following high levels of interest from third parties.
Initial JORC reserve and resource statement for Tanur Jaya Project due shortly.
CORPORATE
New funding of $16.5 million (US$14 million) secured under Convertible Note instrument, subject to shareholder approval. General meeting set for 16 August 2010 to approve issue of Convertible Notes. Restructuring of ownership of all Indonesian projects underway through direct equity channel via Indonesian-listed subsidiary.
OBJECTIVES FOR SEPTEMBER 2010 QUARTER
Complete first sale of Mamahak coal realising US$5M in revenue. Complete shareholder approval for second tranche ($13.5 million or US$11.5 million) of funding. Commence work on JORC resource upgrade at Mamahak Coal Project. Complete restructuring of Indonesian projects equity ownership. Commence development towards bringing Tanur Jaya Coal Project into production by early 2011.


and more here..

http://imagesignal.comsec.com.au/asxdata/20100723/pdf/01081533.pdf
 
Thanks for posting up AngusSmart. Looks like very good prospects ahead and has the potential of becoming one of the biggest coal producers in the South East Asian region in my view.

I hold long term but you should check out all details before investing as advice from others cannot be given without a licence and any indications may be wrong.
 
How much do South Gobi have invested in KRL? It is quite interesting given the battle between RIO and IVA over Mongolia? How much?
 
It appears that south gobi have....

22-12-09 South Gobi Energy Resources Ltd -- %6.70

what are others thinking about KRL? i am only invested rather small into it at the moment but am looking at doing a little more.
 
AngusSmart said:
It appears that south gobi have....

22-12-09 South Gobi Energy Resources Ltd -- %6.70

what are others thinking about KRL? i am only invested rather small into it at the moment but am looking at doing a little more.
Click to expand...

From the quarterly report just out late last week.

Its looks like the dry Mahakam River would have been a point in hindsight but known by some sellers and is why it has not performed that well in spite of some good news over the last few months.


From the quarterly what could we expect:_

The river problem will be solved, Ann., maybe six weeks on 50,000 tonne per month deliveries being achieved.

Possible sale of GPK, the next week or so

JORC resource and reserve statement for Tanur Jaya, next week or so.

Resolution of a demarcation dispute on a tenament bounday for the coking coal tenement the next week or so.

On this last point I have learned that KRL management are conservative and err on the side of caution. If as they say they are confident of a resolution in the right direction you can be sure it will work out. This of course is important as its the good coking coal that will excite.

So a steady stream of good announcements ought see the roo hopping north soon in my view.

The administration of KRL have and have had a hand in many other companies and the pedigree of most management is very good. They are about making money, (45% in escrow) so would be looking for a very substancial increase in price before outside predators start to look in. When one looks over the eight tenaments in Indonesia I see great potential.

The outsourcing of tasks is another plus as having the local community and Companies taking part will intermesh well with the governing bodies in Indonesia.

This seems to be a well oiled machine ready for action in my view but DYOR.

Cheers Explod
 
Hey cheers for that, its pretty much similar what i get from reading news around the place. all the fundamentals seem quiet good, with just a few small problems. i do like the idea that they are out sourcing, as they said that dealing with the Indonesian government is a bit slow. that should put a good tick against their name hopefully making relations with them beter..
 
ASX announcement this afternoon looks very promising now, headed:-

297MT JORC Coal Resource for Tanur Jaya Project, Indonesia.

Cheers to holders and DYOR


JORC Code compliant Resource and Reserve Statement completed for Tanur
Jaya Project (KRL 49%), in East Kalimantan:
o 297Mt of open cut coal resources, comprising 59Mt of Measured
Resources, 107Mt of Indicated Resources and 131Mt of Inferred
Resources.
Coal Resources average coal quality is TM 39.1% (ar), IM 18.6% (adb), CV
5,255kcal/kg (adb) and 3,930kcal/kg (gar), ash 5.1% (adb), sulphur 0.13%
(adb) and RD 1.36 (adb).
Includes 80Mt of open cut coal reserves, comprising Proved Ore Reserves of
15Mt and 65Mt of Probable Ore Reserves.
Coal Reserves average coal quality is TM 39.2% (ar), CV 3,834kcal/kg (gar),
ash 5.0% (ar), sulphur 0.10% (ar) and RD 1.26 (ar).
Conceptual life-of-mine study completed for Tanur Jaya based on
development as a multi-seam, low-dip open cut coal mine.
Annual production schedule commencing at 2Mtpa in FY 2011 and ramping
up to 4Mtpa with five-yearly increments to the end of the known mine life.
Long-term marketing studies, coal price forecast, geotechnical studies and
topographic surveys completed to support planned commencement of
operations in FY2011.
Click to expand...

http://www.kangarooresources.com/Reports.html
 
Re: KRL - Bids on the way for GPK

Rarely post here but good news around the corner for those that have held on to the Roo:


http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a9XJxmUKemqU

Kangaroo Says Essar Makes Bid for Indonesian Mine (Update1)

By Elisabeth Behrmann and Angus Whitley

Sept. 2 (Bloomberg) -- Essar Group, controlled by Indian billionaire brothers Shashi and Ravi Ruia, is among the bidders for a coal mine in Indonesia, said Kangaroo Resources Ltd.

Essar is one of the “interested parties” to bid for Kangaroo’s GPK thermal coal project in East Kalimantan province, Jerko Zuvela, the Perth-based company’s chief geologist, said by phone today. Kangaroo expects to complete a sale in the next few weeks, said Zuvela, who is part of the company’s senior management.

Essar, looking overseas to lock in fuel for its Indian power plants and U.S. steelmaking operations, in March said it bought West Virginia-based Trinity Coal Corp. Kangaroo in July hired Macquarie Group Ltd. to help manage a possible sale of GPK.krl

Kangaroo rose 8 percent to 13.4 cents at the 4:10 p.m. Sydney time close on the Australian stock exchange.

“We keep looking at growth opportunities in the businesses that we are in,” Essar said in an e-mailed statement. “It is not our policy to comment on any specific proposal.”

The GPK mine, 84.82 percent owned by Kangaroo, has a total thermal coal resource of 248 million metric tons, according to the company’s website. First coal sales were made this year.

Essar in March also agreed to buy the Aries coal mines in East Kalimantan to secure supplies for its power plants.

----------------------------
http://www.businessworld.in/bw/2010_09_02_Essar_Others_Eye_Kangaroos_Indonesia_Coal.html

Essar, Others Eye Kangaroo's Indonesia Coal
Kangaroo said last month it had appointed Macquarie in Singapore to manage the bid process


Essar Group and other Indian, Southeast Asian and Australian firms have expressed interest in Australian miner Kangaroo Resources' GPK coal project in Indonesia, a Kangaroo executive said on Thursday.

Kangaroo bought just under 85 per cent of the project last year for $2 million, and has fielded interest from others in the project since then.

"There's no specific deadline. We're working through with the parties that have expressed (interest) or provided non-binding bids and we're looking to work through the process of getting their bids to binding status," Kangaroo's chief geologist, Jerko Zuvela, told Reuters.

He declined to say how many parties had expressed interest, but he confirmed that Essar was one of the interested parties.

"As a Group, we keep looking at growth opportunities in the businesses that we are in. However, it is not our policy to comment on any specific proposal," an Essar Group spokesman said.

A source with direct knowledge of the development said Essar Group was talking to Kangaroo Resources for the Indonesia coal mine, but said talks were at an early stage.

Kangaroo said last month it had appointed Macquarie in Singapore to manage the bid process, but has yet to decide if it wants to sell any part of the project.

"One of the reasons we are considering our strategy on GPK is due to the fact that we have another project of similar coal quality and a lot larger coal resource and reserves at the Tanur Jaya project," said Zuvela, a member of Kangaroo's senior management team, referring to another project in Indonesia.

Kangaroo shares jumped 8 percent on Thursday to close at A$0.135
 
good work sle304, should be an exciting month for krl and sh,s
i wonder who the other bidders could be.there is an australian company in the game too.bhp?
 

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