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Jolly, as the offer is now unconditional I fear it makes sense to accept. Risk is you're left holding an unquoted stock that is impossible to sell. if they do have a compulsory buy out then it might be some time before you see your money.
waste of time and money. david brown would be turning in his grave.
Hopefully they'll put some meat on the bones regarding early coal extraction soon. I remember seeing a very impressive computer generated simulation of makhado quite some time ago but never made it to the website or the public domain
When I saw them in London I asked if Senosi was the kingmaker?! Looks like he’s pumped it up for the rights issue, took the money and got everyone to buy in, now trying to low ball it at 2022 levels. Buying an asset that’s worth 5 times more than he’s trying to pay for it. Disingenuous is being kind.
I expected us to be taken out before Makhado got to production but I expected a fair price.
I contacted the company recently, but they couldn’t speak with me before the quarterly update is released. If history is anything to go by then this should be released on 31st October. They told me to go and read the last quarterly report again and previous update on Makhado.
From last Quarterly report:
“The managed tender processes to select the outsourced mining, plant and
laboratory operators also commenced during the quarter. We are excited to have strong contenders
to be our partners and these processes are expected to be completed during Q3 CY2023.”
This led onto “Commencement of construction in H2 CY2023” with the first coal expected 18 months from commencement of construction.
I also note that this quarter Vele should be up to full capacity, producing 60,000/t per month.
Hopefully now we begin to see some significant news flow and action. I have a call with the company after they publish the quarterly results, then we have the AGM. Coal prices are higher with the market still short. The Israel-Hamas situation as well as cold weather should keep energy prices firm in Europe. I still believe we are a behemoth, ready to explode.
This is from the 19th January SENS/RNS:
The Performance Rights will vest on 30 June 2023 subject to the relevant vesting conditions being satisfied, namely that the remaining development and working capital funding for the Makhado hard coking coal project has been secured.
Incentive for the directors to get this done.
"As a result of the above, Makhado would produce an average of 880,000t per annum (tpa) of HCC,
compared to 540,000tpa in the BFS (an increase of 63%), while thermal coal production increases
from 570,000tpa to an average of 650,000tpa (an increase of 14%) during the first five years of
operation."
HCC 880,000t x $300/t = $264m
thermal 650,000 x $120 = $78m
That's per year for the first 5 years. Think about that for a minute
Indeed, loved up at 11.2 recently, love it even more now! Do any of the South Africans here have any experience of any new sponsors? My conversations with the company previously have indicated the remaining financing will be through debt. Crazy swings like we've had over the last 6 months doesn't really help.