🕐19.02.13 - 15:54 Uhr

INVESTEC: CONTINENTAL COAL - KEY PROJECT PENUMBRA SHOWING REAL PROMISE - BUY




Continental Coal Continental Coal (COOL) today provided updates on both its operations and its corporate activities.

The two operating mines are performing well, while the key development operation, Penumbra, is continuing to ramp up towards the June target rate of +60kt/month.

Talks with parties interested in participating in the development of DWC are ongoing, with COOL reporting significant advancement in the past two months.

Recent refinancing activities and resultant dilution has, however, lowered our TP. * Penumbra is continuing to ramp up with a second continuous miner to be operating underground from the end of this month.

Current focus is on expanding underground infrastructure to support the planned increase in production levels.

Outstanding mine development remains on target and within budget, with no cost overruns expected.

All outstanding capital costs are being met from the existing ABSA debt facilities.

* The US$10m sale of COOL’s interest in VanMag is nearing completion, with the balance of $6m on track for settlement at the end of this month.

The proceeds are to be used to fund all the outstanding amounts due for the minority interests in Mashala Resources. * Additional equity that has been issued as a consequence of debt refinancing has been dilutive, reducing our valuation (and hence our target price) from 10p per share to 9p per share.

* The company updates highlight COOL’s improving investment appeal, with Penumbra in particular a major catalyst in this regard.

Securing a strategic partner for DWC would certainly be an additional positive catalyst.

We note that almost 40% of our total project NPV is made up of the DWC project, which remains unfinanced and is therefore at risk.
To access the full note please click here Analyst: Hunter Hillcoat
To receive further information or change your Research Preferences please email: South Africa or United Kingdom and Australia IMPORTANT NOTICE: This communication forms part of an electronic communication sent to the intended recipient (or such persons authorised representative) for their sole use and is subject to important legal and regulatory restrictions, qualifications and disclaimers that may be accessed and read in the attached research publication.

If you cannot access the disclaimer, please obtain a copy thereof from us by sending an e-mail to in the case of SA or in the case of the UK or Australia: The disclaimer is deemed to form part of this communication.

In the event of a conflict between the disclaimer and this notice, the disclaimer shall take precedence.

This communication is confidential for the information of the addressee only (and may not be reproduced in whole or in part, copies circulated, or disclosed to another party, unless permitted pursuant to and in accordance with the disclaimer.

If you are not the intended recipient of this e-mail, then: (a) please notify the sender of this e-mail immediately by return e-mail, facsimile or telephone and delete this message from your system; (b) you may not print, store, forward or copy this message or any part thereof or disclose or cause information in this message to be disclosed to any other person.

Nothing in this message constitutes an offer, warranty or representation from us.

None of our employees or representatives are permitted to send unsolicited messages ("spam") and our company cannot be held liable therefore.

If you regard this message as spam, please inform us immediately by sending an e-mail to in the case of SA or in the case of the UK or Australia: Unless otherwise agreed: (a) We are only deemed to have received an e-mail once we have confirmed receipt thereof to you; (b) We are deemed to have sent an e-mail once reflected as “sent” on our e-mail server.

If this message contains offensive, derogatory or defamatory statements or materials, it means the message has been sent outside the sender’s scope of employment with us and only the sender can be held liable in his/her personal capacity.

Our corporate information and names of our office bearers can be accessed by sending an e-mail to in the case of SA or in the case of the UK or Australia: The disclaimer applies to our original message, any attachments and all subsequent messages or attachments we may send. ________________________________
-------------------------------------------------------------------------------- CONFIDENTIALITY NOTICE AND LEGAL LIABILITY WAIVER: The content of this email and any attachments are CONFIDENTIAL and may contain privileged information.

If you are not the addressee it may be UNLAWFUL for you to read, copy, distribute, disclose or otherwise use the information contained herein.

The content of the message and or attachments may not reflect the view and opinions of the originating company or any party it is representing.

If you are NOT the intended recipient then please email back to ------------------------------------------------------------------------------------






Products & Services | Jobs