CoAL secures long term Black Economic Empowerment status with Mvelaphanda Holdings and associated companies, ensuring the Company complies with the 2014 South African legislative targets for BEE ownership.
ArcelorMittal, the world’s largest steel company, takes a 17.8% stake and agrees to enter into an off-take agreement with CoAL to secure a minimum of 2.5 million tonnes annually from the Company’s Limpopo coal projects, with an option to secure a further 2.5 mtpa.
Upgrade of the Company’s Vele (previously Thuli) soft coking coal resource to 441 million gross in situ tonnes, of which 133mt is “measured.”
Agreement reached on the sale of the Holfontein coal project to Lachlan Star Limited for A$25 million.
CoAL completed the acquisition of the remaining 30% of the Mooiplaats project, taking the Company’s interest to 100%.
Nimag (Pty) Ltd’s nickel magnesium alloy business generated a 12 month EBIT of A$3.1 million.
Section 11 approval received satisfying the last remaining condition for the acquisition of 60% of the 32,584 hectare Tshikunda coal project.
Appointment of Riaan van der Merwe as Chief Operating Officer.
Cash balance at the end of the quarter was A$254 million. The Company has no debt.
Commenting on the results today, Simon Farrell, Managing Director of CoAL, said,
“Progress on the Company’s coal projects is continuing according to plan and the rehabilitation of the Mooiplaats box-cut is now completed. The results of the exploration programmes on the Vele and Makhado projects confirm our expectations of both coal quality and coal reserves with Mining Right applications for both projects to be submitted in the September quarter. This progress, together with the enhancement of CoAL’s shareholder base, positions the Company uniquely whereby it has significant cash reserves for large scale development and an off-take agreement that will allow the Company to take advantage of the current resource prices within a reduced risk environment.”
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