Conti.coal Share Price (COOL)

was jogging on the treadmill and it read 'Cool Down' - i thought 'typical'. Havent listened to webcast yet but Brewer has upped his stake a little.

Wow it's good

dull as dishwater this company at present.

In full detail: http://www.conticoal.com/_content/documents/721.pdf

May 15, 2013 The Agreement With Village Main Reef Is The First Of Many Deals in That Continental Coal Has In The Pipeline By Sally White Continental Coal has now made the quantum leap that it has been working on for months. In an A$8 million private placing with JSE-listed diversified precious metals mining group Village Main Reef (VMR) Continental’s management has given shareholders a concrete reassurance that it can commercialise its vast portfolio despite the difficult conditions in capital markets. Penumbra As finance director Jason Brewer says, Continental needs to show shareholders that “the company is moving forward, operationally and at the corporate level”. Nor is this the only deal that he and chief executive Don Turvey have been working on – their desks are piled high with paperwork for negotiations on joint ventures, financings and sales. It just so happened that VMR were roaring to go so got first on the list. The VMR money will strengthen the balance sheet by cutting debt (group borrowings were around US$39 million at the December 2012 half-year stage) and providing working capital. With a market capitalisation of US$139 million, VMR has cash of US$50 million and its forecast cash flow is soaring. As Don Turvey comments, the deal will “strengthen the company’s growth strategy and operating credentials in South Africa with a major, well credentialed partner.” From VRM’s side chief executive Marius Saaiman described the move as part of a diversification strategy. He says VRM was at “an inflection point” in its development. Continental has, he says, “a strong portfolio of projects and has demonstrated its ability to develop and operate mines and we look forward to working and supporting the management team as production continues to increase and as greater value is recognised”. The deal, at a price of A$0.80 a share, also gave VMR the option to acquire small shareholders’ parcels and it has added 11.8 million shares at an average price of A$0.521 to take its total holding up to 16.34 per cent. And it can acquire further Continental shares on the market at a price of up to A$0.10 to bring its stake to 19.9 per cent of the company. Not that the share price is going to roar ahead immediately, given the dilution the 100 million new shares creates. And an earlier A$5 million debt refinancing had also been equity dilutive. As things stand, at around 3.4p, the shares are 70 per cent lower than a year ago. But that’s not the dilution at work, rather it’s that in its highly nervous state the market has focused on the costs rather than rewards as Continental commercialises its portfolio of exploration targets. Yet these probably host over 10 billion tonnes of coal. As Jason points out, the market seems to be overlooking the fact that Continental has a track record of implementing l

May 15, 2013 The Agreement With Village Main Reef Is The First Of Many Deals in That Continental Coal Has In The Pipeline By Sally White Continental Coal has now made the quantum leap that it has been working on for months. In an A$8 million private placing with JSE-listed diversified precious metals mining group Village Main Reef (VMR) Continental’s management has given shareholders a concrete reassurance that it can commercialise its vast portfolio despite the difficult conditions in capital markets. Penumbra As finance director Jason Brewer says, Continental needs to show shareholders that “the company is moving forward, operationally and at the corporate level”. Restricted Area Please login or register (FREE, quick and easy) to read the full article.