MCM - MC Mining

[agro]

almost close to 52 week highs backed by the short supply in aus,

will be holding to Q3 when they produce.

thoughts in the near term re - more results?

 

[cicak_kupang]

Im suprised there are not more writing on the CZA BB. what a fantastic rise this share has had this year, and there is no reason for it to stop yet, what with improved, updated resources, and more to follow, and with q3 production. This all on the back of record coal prics and a rumor that BHP where eyeing CZA ad a take over target .....Keep on rolling CZA, keep rolling.....

 

[lucifuge]

What are peoples thoughts on this stock at its current carnage? It's had a bit of a drop. Yet the stock is sound; there's been no bad news!?

 

[cruise61]

What are peoples thoughts on this stock at its current carnage? It's had a bit of a drop. Yet the stock is sound; there's been no bad news!?

Most have dropped this year

CZA have just Commencement of Production at Mooiplaats which should make them stronger.

Coal in Africa is in demand and spot prices are very high still.

This is definately one to watch lots of good reports and so far and havent found any bad but im looking

They do seem to be in a good financial position after reading finances.

Will investigate and get back to you

 

[The Muffin Man]

I hadn't heard of this share until it came to the top of the thread list yesterday, so thought I would have a look.

The company seems to have fallen victim to current World economic conditions, with the sahre price falling dramatically. Is there other reasons, directly to do with the company rather than overal World economic conditions, that the price has fallen so dramatically that anyone knows of?

Looking through the books, the comapny has $200m+ cash on hand, and no material interest bearing liabilities to speak of. The company also stated futher developments of their projects shuold be able to be funded by their bank balance plus cash flow from projects coming online now. Add this to the fact one of their projects is nearby to a power station in South Africa, that they have the backing of possibly the biggest stell producer in the World (with offtake agreements reached if I read correctly?), and secured infrastructure usage (port and rail). They look value at the moment, but who knows with the market the way it is.

Interested on others thoughts.

 

[The Muffin Man]

The further fall in the stock price is unbelievable, or I should say it would be unbelievable if the markets weren't performing so badly lately!

Sitting on $235m in cash and cash equivalents to get Mooi well and truly off the ground, then they can use cash flow from that operation to progress their other holdings. Mooi will start producing this quarter.

Sitting on 2b tonnes (measured / inferred / indicated / reconnaissance) of coal

They can sell directly to power suppliers in SA, and to AM who have agreed to take a starting 2.5m tonnes per year with the option to increase to 5m.

They have secured some infrastructure use (rail and port) and more is in the works.

Things seem to be moving along very well, but the share price would suggest otherwise. The market cap is currently less than $300m by my calculations?

I’m going to look further into coal prices I think.

 

[nick2fish]

Good ramp MM Cheers IMO coals stocks may be the first of the commodity stocks to recover so every hammered coal stock is catching my attention, though this one slipped by me Certainly falls into the overly hammered category

 

[The Muffin Man]

Just to clear up I haven't bought into them yet, I'm looking further to see why there has been such a massive fall in prices. I was hoping to hear some views from others.

 

[oldblue]

CZA has certainly taken a big hit. Trading at 15% of its 52 week high of $4-84.
They're not alone in this regard but probably worst affected. GCL, a profitable coalminer is trading at 26% of its 52 week high but has, of course, the advantage of being an operating concern with infrastructure in place ( admittedly suffering the port congestion problems ). CZA on the other hand has to contend with the uncertainty facing all miners still in the development stage, regardless of the merits of their case.

 

[JimmySwell]

For the past month or so, CZA seems to have settled into a band between 72c and $1.24. There was a healthy spike yesterday (Tue 25Nov08) where it opened at $1 and closed at $1.18 on good volume. Today it closed down a bit at $1.11.

Some other TA observations. The DIs are about to cross over (indicating a potential buy) and the 14-day RSI is climbing.

Maybe a range play is in order? Buy in around $1 and coast up to the high teens for a quick profit? This volatile market favours bold hit&run trades.

 

[michael_selway]

For the past month or so, CZA seems to have settled into a band between 72c and $1.24. There was a healthy spike yesterday (Tue 25Nov08) where it opened at $1 and closed at $1.18 on good volume. Today it closed down a bit at $1.11.

Some other TA observations. The DIs are about to cross over (indicating a potential buy) and the 14-day RSI is climbing.

Maybe a range play is in order? Buy in around $1 and coast up to the high teens for a quick profit? This volatile market favours bold hit&run trades.

Hm

http://www.proactiveinvestors.co.uk...l-and-plenty-of-cash-to-develop-it--3647.html

Wednesday, December 03,

Coal of Africa: plenty of coal and plenty of cash to develop it

by Ian Mclelland company news image

A large share purchase by the directors of any company is a good way to catch our attention. On 29 October, Simon Farrel, Managing Director of Coal of Africa, did exactly that, acquiring approximately £80,000 in shares via the company’s listing on the ASX.

Coal of Africa has three advanced assets in South Africa – two open cast coking coal projects, and one underground thermal coal project, all are planned to move into production in quick succession in 2008, 2009 and 2010.

The company also has a few interesting shareholders too. Arcelor Mittal, the world’s largest steel producer, has a 16.6% stake, which it purchased at 111 pence per share as part of a 2.5 million tonnes per annum off-take agreement for coking coal. Black Economic Empowerment Group, Mvelaphanda, acquired a 19% stake, paying approximately £65 million. Black Rock, JP Morgan Asset Management and GCM Resources also have significant equity stakes. Coal of Africa has managed to build a pool of solid investors through its three stock exchange listings on the ASX, AIM and JSE.

The quality assets and strong shareholder base are combined with some A$200 million in cash on the balance sheet. A further boost the balance sheet should arrive via the disposal of Nimag Group, a non-core metals processing company which manufactures and distributes nickel magnesium alloys, metal fibers and ferro-silicon magnesium alloys. Coal of Africa also recently divested of one of its other coal projects, Holfontein....

thx

MS

 

[The Muffin Man]

The further fall in the stock price is unbelievable, or I should say it would be unbelievable if the markets weren't performing so badly lately!

Sitting on $235m in cash and cash equivalents to get Mooi well and truly off the ground, then they can use cash flow from that operation to progress their other holdings. Mooi will start producing this quarter.

Sitting on 2b tonnes (measured / inferred / indicated / reconnaissance) of coal

They can sell directly to power suppliers in SA, and to AM who have agreed to take a starting 2.5m tonnes per year with the option to increase to 5m.

They have secured some infrastructure use (rail and port) and more is in the works.

Things seem to be moving along very well, but the share price would suggest otherwise. The market cap is currently less than $300m by my calculations?

I’m going to look further into coal prices I think.

I did everything except buy into it didn't I?

I've only just started seriously looking into buying shares based on fundamentals in the past 6-8 months so didn't have the courage to back my convictions and buy this back in October/November.

Share price was ranging between 75c and 85c when I was looking at this, now trading at $1.85 Well and truly missed the boat I think.

 

[cicak_kupang]

Had this one a watch list. Has really pulled back int he last 2 weeks. And not sure of what to make of the latest anouncement.....? Seems to be getting a bit diluted with new shares....
Any one elses thoughts........................

 

[noirua]

I've bought a holding in CZA - http://www.coalofafrica.com/ - on the basis of the Vele Project go-ahead.

Basics are, that phase 1 will start producing 1mtpa of coking coal in Q3 2010 and production will later be doubled.
Phase 2 will take production to 5mtpa.

Looks as if phase 1 will total cost at up to ZAR450 million and further expenditure of ZAR200 million would double production to 2mtpa.

Arcellor Mittal South Africa will take at least 2mtpa of production and supply railing at no fee.

 

[noirua]

CZA, which has not taken part in the recent rally in coal stocks, may have been held back whilst waiting for a go-ahead for the Vele mine and finalization of the 2014 FireFly led consortium 2014 agreement.
CZA have mines and projects at Mooiplatts, Vele, Makhado, Dofontein, Woestallen, Zonnebloem, Hartogshoup, Klipfontein and Opgoedenhoop.

 

[JTLP]

CZA, which has not taken part in the recent rally in coal stocks, may have been held back whilst waiting for a go-ahead for the Vele mine and finalization of the 2014 FireFly led consortium 2014 agreement.
CZA have mines and projects at Mooiplatts, Vele, Makhado, Dofontein, Woestallen, Zonnebloem, Hartogshoup, Klipfontein and Opgoedenhoop.

Hi Noirua,

Why do you suggest CZA haven't participated in the recent rally? Are you referring to takeover activity in the sector or higher coal prices?

I was looking at the yearly and comparing to other Coalies (in general) and it seems to have tracked most...

Red is MCC, Thin Black is RIV, Green is GCL and the light blue is NHC.

Personally I think NHC is lagging...t/o bid for MCC keeping it down? A stake in WCL?

 

[noirua]

Hi Noirua,

Why do you suggest CZA haven't participated in the recent rally? Are you referring to takeover activity in the sector or higher coal prices?

I was looking at the yearly and comparing to other Coalies (in general) and it seems to have tracked most...

Red is MCC, Thin Black is RIV, Green is GCL and the light blue is NHC.

Personally I think NHC is lagging...t/o bid for MCC keeping it down? A stake in WCL?

Hi JTLP, I couldn't get your chart to work. Anyway, Oct 2009 stock hit $2.37 and $2.45 in January, trading around $2.50 now - a choppy sideways movement - so hasn't taken part in the coal sector rise.
The Vele mine decision should push CZA forward once the recent murder problem in South Africa is distanced and the Firefly led consortium rights by 2014 are accepted by investors as part of the scene these days.

 

[cicak_kupang]

There is certanly more interest in CZA now, than even 4 wks ago. Just look at th number of shares been bought before open....today was over 700,000 shares, yesterday was almost 400,000. and its nudging 52 wk highs atm.
i must email CZa and find out more about just when they intend to de-list from the asx/jse, as indicated in the 1/2 yrly report hat came out mid march, top half on page 3.
Must say though, this company isnt real big on answering my emails if past performance is anything to go by.................

 

[cicak_kupang]

interestingly ArcelorMittal, who is involved with this MCC take pover poposal is also tied up with CZA with an of take agreement of 2.5 mtpa with opion to increase to 5 mtpa. I can remember reading a CZA release that CZA intends to "lower capital costs by proposed partnership with fnancially strong contractor MCC", for the machinery, trucks etc .
Wonder if CZA would lso be a viable t/o targe for ArcelorMittal..
Thougts anyone....................

 

[noirua]

interestingly ArcelorMittal, who is involved with this MCC take pover poposal is also tied up with CZA with an of take agreement of 2.5 mtpa with opion to increase to 5 mtpa. I can remember reading a CZA release that CZA intends to "lower capital costs by proposed partnership with fnancially strong contractor MCC", for the machinery, trucks etc .
Wonder if CZA would lso be a viable t/o targe for ArcelorMittal..
Thougts anyone....................

Looks a quite complex company and one of five listed as International in the UK. What use? - well it is rare for a companies shares to be held in an ISA when quoted on the AIM market.
The South African 2014 law, where Firefly lead a consortium to be allocated stock at just £0.60 (A$1) does put the fly in the ointment for some. Will this law be extended in the future with mounting discontent in some South African quarters?

Providing there are no hiccups analysts see CZA as a cheap mining coal stock, considering the hard coking coal Vele Project.

I doubt many think there will be a move for CZA even though it would advantage me holding stock. ArcellorMittal could make a move as CZA are one of few coal stocks appearing undervalued: Though many, for quite different reasons, might see that in coal stock ASX:CNA where lumbering giant RIO hold a controlling stake.