MCM - MC Mining

[shares]

Coal of Africa Limited

Background Information

Coal of Africa Limited (’CoAL’), formerly GVM Metals Ltd, is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects in South Africa. The Company’s key projects, along with their leading metals processing company Nimag Group (Pty) Ltd are in South Africa. The Company was incorporated in Western Australia and listed in 1980. Since 2005, the Company has also listed on both the AIM and JSE markets, allowing further growth in the Company’s coal assets.

Projects

Baobab (100% Interest in project)

Baobab is situated close to Rio Tinto’s Chapudi project, of which was said in March 2006 "deposits of this size and quality are few and far between in South Africa". Rio Tinto’s work has significant implications for GVM’s interests in the area. The establishment of a viable coal project would pull infrastructure to the district including, almost certainly, one of Eskom’s future coal fired power stations.

Holfontein (100% Interest in project)

Holfontein is located near the middle of Sasol’s (and more recently Anglo Coal’s) Secunda coal production area. It has remained undeveloped partly due to interpreted geological complexity and partly because of fragmented ownership.


Mooiplaats (70% Interest in project)

Phase 1 and 2 of a major drilling program overseen by SRK Consultants is currently underway, in which 55,000 meters of drilling have been completed. An interim resource statement issued by SRK has confirmed an inferred resource of 240 million tonnes, which at the time contained a measured resource of 43 million tonnes. Since the release of the report, the infill drilling program to complete Phases 1 and 2 has continued and a final report is expected towards the end of November. These drilling programs covered only a third of the total holdings and Phase 3 of the drilling on the remainder of the property will commence in 2008. The goal of the drilling program was to delineate a resource sufficient in size to supply the adjacent Camden Power Station for its coal requirement of 6 million tonnes per annum for at least 10 years.

Thuli (74% Interest in project)

A 65 borehole drilling program on the Thuli coal project commenced in August 2007 and data collected in the terrain model completed earlier in the year will be used in the identification of the drilling targets.

Sourced from: www.coalofafrica.com

Starter post, more info to follow

 

[cicak_kupang]

I have this on my buy list, but it has risen 15-20 c in the last fwe days and stalled today. Will wait for a bit of a pull back. Certainly has a good future I feel. Its arch rival Riversdale Mining has had a spectacular 2007 with the Sp going up 10 fold! But no interest in this mirror image company, CZA, that will start production b4 Riversdale. The financial review had a good write up on it in its 20 stocks to watch in 2008.

 

[michael_selway]

Coal of Africa Limited

Background Information

Coal of Africa Limited (’CoAL’), formerly GVM Metals Ltd, is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects in South Africa. The Company’s key projects, along with their leading metals processing company Nimag Group (Pty) Ltd are in South Africa. The Company was incorporated in Western Australia and listed in 1980. Since 2005, the Company has also listed on both the AIM and JSE markets, allowing further growth in the Company’s coal assets.

Projects

Baobab (100% Interest in project)

Baobab is situated close to Rio Tinto’s Chapudi project, of which was said in March 2006 "deposits of this size and quality are few and far between in South Africa". Rio Tinto’s work has significant implications for GVM’s interests in the area. The establishment of a viable coal project would pull infrastructure to the district including, almost certainly, one of Eskom’s future coal fired power stations.

Holfontein (100% Interest in project)

Holfontein is located near the middle of Sasol’s (and more recently Anglo Coal’s) Secunda coal production area. It has remained undeveloped partly due to interpreted geological complexity and partly because of fragmented ownership.


Mooiplaats (70% Interest in project)

Phase 1 and 2 of a major drilling program overseen by SRK Consultants is currently underway, in which 55,000 meters of drilling have been completed. An interim resource statement issued by SRK has confirmed an inferred resource of 240 million tonnes, which at the time contained a measured resource of 43 million tonnes. Since the release of the report, the infill drilling program to complete Phases 1 and 2 has continued and a final report is expected towards the end of November. These drilling programs covered only a third of the total holdings and Phase 3 of the drilling on the remainder of the property will commence in 2008. The goal of the drilling program was to delineate a resource sufficient in size to supply the adjacent Camden Power Station for its coal requirement of 6 million tonnes per annum for at least 10 years.

Thuli (74% Interest in project)

A 65 borehole drilling program on the Thuli coal project commenced in August 2007 and data collected in the terrain model completed earlier in the year will be used in the identification of the drilling targets.

Sourced from: www.coalofafrica.com

Starter post, more info to follow

Hi whats the resource, reserves & status of the first 2 projects?

thx

MS

Business Description
GVM Metals (GVM), formerly Golden Valley Mines NL, is a minerals exploration and investment company with projects and holdings in Australia and Africa.

Company Strategy
GVM Metals Limited is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects in South Africa. The Company currently has four coal projects in various stages of exploration as well as Nimag, GVMs interim cash producing asset which manufactures nickel magnesium alloys. Nimags growth strategy will be via the acquisition of similar alloy or foundry supply manufacturing enterprises. Companys strategy is to maximise shareholders value via becoming a significant thermal and metallurgical coal producer, supplying global and South African markets.

 

[JimmySwell]

I've been tracking CZA for a while, since the name change.

Over the past few days (despite a falling market) it seems to be respecting a support value of $1.90. If it behaves the same way as it has on the last 3 attempts, it will climb up to test resistance around $2.10 within the next week or so.

I wish I knew how to post a chart on this forum, so I could save everyone from reading my 1000 words.

 

[JimmySwell]

One week later, and CZA closed on Friday at $2.10 after wandering up to $2.13 intraday.

A close above $2.10 might be the signal for the next brief surge up.

 

[cicak_kupang]

CZA up on opening this morning. Hope your right that this signals the next step up Jimmy.
Considering that the ASX is down about 100 pts, this is a nice sign, hope it doesnt pull back much..............

 

[michael_selway]

Coal of Africa Limited

Background Information

Sourced from: www.coalofafrica.com

Starter post, more info to follow

Hi do you still own CZA? doesnt look too bad, will be producing soon

http://www.compareshares.com.au/wise42.php

Analyst report - shares
Stock of the week: Coal of Africa
March 17, 2008
Tim Morris, wise-owl.com analyst

Stock: Coal of Africa
Recommendation: Speculative Buy
Code: CZA
Market Cap: $581m

Coal is one of the world's cheapest and most widely available energy sources, providing 25% of global primary energy needs and 40% of the world's electricity. In an environment where broader market sentiment has been weak, the energy sector has remained a shining beacon, particularly coal.

Coal of Africa is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects in South Africa. The Company currently has six coal projects in various stages of exploration as well as Nimag, its” interim cash-producing asset which manufactures Nickel Magnesium Alloys.

The adoption of a new strategy saw the company acquire a number of South African coal projects over the last few years, and just recently change its name from GVM Metals to Coal of Africa Ltd (CoAL) in December. Although the company generates modest cash flows from its 'Nimag' metals processing operations, the real driver of shareholder value is set to come from the development of its South African coal projects.

South Africa is heavily dependant on coal, which provided 93% of its electricity requirements in 2005. This nation’s sole provider of electricity, 'Eskom', consumes 112million tonnes per annum (Mtpa).

With most of its power stations running at near full capacity, it is in need of substantial new coal resources, and plans to build a new 12-15Mtpa coal fired power station every two years to satisfy growing domestic power demands. By developing its promising portfolio of South African coal projects, Coal of Africa aims to fill this domestic void and take advantage of strong coal export markets.

The 70% owned ‘Mooiplaats’ project is the company’s most advanced, as first production is targeted for Q3 2008. Minable coal reserves currently stand at 76.1Mt based on exploration work covering 2/3rds of the company’s granted mining and prospecting rights.

The initial plan is to produce thermal coal for domestic and export markets at a rate of 2.5-6Mtpa, after an 18-24 month ramp up period. At a production rate of 4.5Mtpa the project would support a mine life of 77 years. Expansions beyond this level are possible, but depend upon the results of exploration work to be conducted throughout the year.

Further exploration upside at Mooiplaats lies in the additional ground that the company is hopeful of securing the prospecting rights for. This area in question is currently under application, and if granted, would reduce the drilled area at Mooiplaats to only 1/3rd of the total landholding.

The company’s Holfontein project, in which it is earning 100% interest, is also hopeful of coming into production late in the year, or at least commencing development. The inferred resource base currently stands at 55 million tonnes of coal, however, further exploration drilling is due to commence earlier this year. A mining application has been submitted and approvals, which are necessary to commence development, are expected during Q3 2008. The final purchase price for this project is linked to the minable coal reserves able to be delineated. The current plan is to eventually produce 1.2Mtpa of thermal and coking coal, for a mine life in excess of 20 years.

Coal of Africa's largest resource base is hosted by its 100% owned Baobab project, located in the Limpopo province of South Africa. The project's coal resources now total 713Mt, of which 156Mt has been identified as suitable for opencast mining. A conceptual feasibility study, drilling, and a mining application are all set to be undertaken from early 2008.

Combined with one of the company’s other projects located in the Limpopo province, known as 'Thuli', which itself hosts an inferred resource of 352Mt, Coal of Africa aims to ultimately produce 10Mtpa of coking coal. It is envisaged that 3Mtpa will be exported from Thuli, and 7Mtpa from Baobab. Providing clues as to the course of the eventual production ramp up from these two projects, the company has made moves to acquire rail freight rights for production of 1.5Mt in 2009, 4-5Mt in 2010-11 and 10Mt in 2012.

Overall, Coal of Africa aims to define 2bn tonnes of coal resources within the next 12-18 months, and begin production at some projects towards the end of 2008. The company is well funded to accomplish these ambitions, with around $115m cash on hand. Ongoing exploration activity and developmental milestones at key projects are expected to drive the share price higher as the market recognises the company's near term production prospects and strength of its resource base, which could support over 50 years of mining.

We rate the stock a 'speculative buy' with a high risk rating attached akin to many of our other junior resource recommendations. Coal prices will affect sentiment towards the stock, while other key risks include developmental delays and sovereign risk, as its projects are located in South Africa.

 

[shares]

Hi do you still own CZA? doesnt look too bad, will be producing soon

http://www.compareshares.com.au/wise42.php

I own some but sold most for profits , looking back now I should have held on. I will be looking to buy back in as soon as the market settles down (which could take months ). CZA has attracted a lot of trading activity in recent months, probably because

" ... [CZA are expected to] begin production at some projects towards the end of 2008"

Thanks for the article Michael.

shares

 

[Nick Radge]

Anyone know why these are +8% today?




This post may contain advice that has been prepared by Reef Capital Coaching ABN 24 092 309 978 (“RCC”) and is general advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice you should therefore consider the appropriateness of the advice having regard to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

Past performance is not a reliable indication of future performance. This material has been prepared based on information believed to be accurate at the time of publication. Subsequent changes in circumstances may occur at any time and may impact the accuracy of the information.

 

[JimmySwell]

I'm guessing that it's the market's general interest in small coal companies.

All 3 that I've been tracking (COK, BLK, CZA) have been doing exceptionally well the past 2 weeks.

 

[michael_selway]

I'm guessing that it's the market's general interest in small coal companies.

All 3 that I've been tracking (COK, BLK, CZA) have been doing exceptionally well the past 2 weeks.

Hi Jimmy, does BLK explore/produce mainly coal?

http://www.blackhamresources.com.au/

Thx

MS

 

[JTLP]

Sheesh...this one is moving north nicely. Up 6% yesty, 5% today. Is there something in the pipeworks? Or just people coming back into coal stocks?

 

[wildmanchris]

People love Coal and the juniors with good support are flavour of the month - would have done nicey being in this and COK over the last couple of weeks.

 

[JimmySwell]

Hi MS,

BLK does a bit of gold and a bit of coal in WA, mainly.

Their Russian adventure is a coking coal and methane prospect.

Have look at the BLK thread for more information/speculation - it's been an interesting one to observe over the past month or so.

Jimmy

Wandering back onto the thread topic.... CZA closed 9.6% up today at $2.85. They also posted a response to an ASX speeding ticket which speculated that speculators may or may not be speculating CZA as a takeover target. It is a good example of management-speak. It also said that they'd negotiated a good price for a coking coal contract and that other organisations may be considering taking an equity position in CZA.

 

[JimmySwell]

CZA ended the week at $2.90.

After such a skyrocket week, I anticipate there will be a bit of retrace before resuming the modest but stable upchannel it's been following so far this year.

 

[JTLP]

WOWSERS...

Finished on its all time high of 3.65 today.

Can somebody with technical knowledge give me some insight on this please?

Is this Wave 3?

Treefrog, GG

Shanks

JTLP

 

[Nick Radge]

JTLP,
I'm on at $2.30. Don't get too concerned about trying to analyze it. Your job is to manage it. Just run a trailing stop behind the price action and let it do its job.

Nick

 

[JimmySwell]

CZA touched $3.90 during the past week and is sitting at $3.86 as I type.

They have deals with China in play.

 

[michael_selway]

CZA touched $3.90 during the past week and is sitting at $3.86 as I type.

They have deals with China in play.

Do you have any links in regards to the deals in Canberra?

Thanks

MS


GVM Metals (GVM), formerly Golden Valley Mines NL, is a minerals exploration and investment company with projects and holdings in Australia and Africa.

Company Strategy
GVM Metals Limited is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects in South Africa. The Company currently has four coal projects in various stages of exploration as well as Nimag, GVMs interim cash producing asset which manufactures nickel magnesium alloys. Nimags growth strategy will be via the acquisition of similar alloy or foundry supply manufacturing enterprises. Companys strategy is to maximise shareholders value via becoming a significant thermal and metallurgical coal producer, supplying global and South African markets

 

[JimmySwell]

Dunno that I said anything about deals in Canberra.

But for the China connection, I'm drawing three threads together:

In a 21APR08 press release http://money.ninemsn.com.au/article.aspx?id=450815 it was announced that ArcelorMittel was buying a 16% piece of CZA.

So I decided to investigate Arcelor and stumbled across this item
http://www.arcelor.com.cn/inner.asp?lang=en&topid=19&secondid=79&menu_id=79 , namely that Arcelor has invested 770M RMB with 18 joint ventures in China.

Finally, last year Premier Wen Jiabao was in Africa and specifically addressed sharing coal-to-oil technology deals with South Africa http://www.uofaweb.ualberta.ca/chinainstitute/nav03.cfm?nav03=47444&nav02=43884&nav01=43092

So my conclusion (rightly or wrongly) that ArcelorMittel will be the conduit for CZA's coal into Arcelor's steel projects in China. Lots of coal required to make steel - just ask anyone who lives in Whyalla.