Member Info for Bozmo

Coal Doctor, I heard from 2 separate sources that minister had signed it off, which gives me 95% confidence.

Peel Hunt estimate EBITDA=$80,000,0000 Share in issue = 140,879,585 EBITDA/Share = 56.79 cents or at gbp 1.40 ~40.56p assuming Makhado estimates are met and no dilution

These are my thoughts: Everything is going to plan currently, ticking all the boxes although we�re dealing with South Africa so things much not be going as quickly as we hope but we�re getting there and Makhado is definitely going ahead. So what are we expecting in near future? i) Land access to be granted; by all accounts this has been signed off by Minister so imminent; ii) Off -take agreements to be completed by May/June; iii) Financing completed Q3; iv) Vele to be announced as up for sale; v) Greater Soutpansberg Projects (GSP) to be granted NOMR; estimate ETA by end April; vi) North Adit at Uitkomst around end Q3; vii) Second CGA (?) Note: i) Once i)-iii) are approved then no question we�re going ahead. Peel Hunt only have 40% probability attached, and have a NPV of $206m for Makhado; ii) Selling Vele and increasing Uitkomst production with North adit development takes us into self-sufficiency. While Vele won�t officially be announced as up for sale until after the June board meeting maybe it already is?! iii) It�s been noted previously we are speaking with the likes of Glencore, ArcelorMittal and Vitol. Big players. One of these names will help financing. iv) No increase in share issuance to fund Makhado. No dilution. This is important. v) Development of North Adit going ahead regardless; vi) Once Makhado is completed, Peel Hunt estimate company will generate EBITDA of $80m (or ~40p/share assuming no dilution). Micro: i) New Mining Charter to boost Industry; ii) No development in SA mining sector in recent years so prices to remain high; iii) SEZ will boost demand for coal from GSP; Macro: i) Coal prices remain firm; ii) China have lifted overseas investment ban. Have strong demand for clean coal; iii) SARB cut rates yesterday and their model indicates limited appreciated for rand;

https://www.fin24.com/Finweek/Featured/mc-mining-ceo-upbeat-about-its-future-20180326 Nothing new but nice little update

Following on from what Hemmings was saying below, the land access claim is indeed imminent. The expropriation has been signed off by the Minister so we should be able to get onto the land by the end of June. This will allow us to clear away shrub land, complete the final drilling and prepare the land for mining. It�s frustrating we haven�t completed to take-off agreements yet but final negotiations should begin in a month or so. At the AGM the names in the frame were Glencore, ArcelorMittal and Vitol so we are definitely playing with the big boys so I�m happy to wait. If we complete sale of Vele for $30m with actual amount depending on the $/rand rate then we should be in good shape even if we�re unable to find a second CGA. Those monies can go to fund Makhado, and $30m is a healthy chunk of the $75m we need to fund Makhado. Again Proposed Vele sale should be communicated in June. I don�t disagree with valuation from Hemmings. Recently we have been provided with various metrics by the company so we can work out the sum of the parts. In addition to Hemmings numbers, let�s not forget we paid $75m from Rio for the Greater Soutpansberg Projects (GSP) and with huge reserve like Chapudi it shows what potential blue sky there�s is for MC Mining. We are in the process of obtaining NOMR for this and once that happens we can start including in the companies valuation. Current market cap of project is currently only $78m so massive potential here. The future is bright here and there�s a number of events coming up that will be positive for the company and hopefully the share price. Absolutely no reason for us to be trading at the levels.

Nothing new but a nice summary https://www.miningreview.com/coal-southern-africa-mc-mining-new-name-new-focus/

If board meeting before this then should get some idea of intention on Vele. Agree with Hemmings that likely be sold

Have you chaps checked trades on the NEX exchange?

Tokols If you think DB has done a bad job then I suggest you read the last few annual reports available on the website and compare the position we�re in now to the position when he took over. Many expected us to go bust, and the turnaround has been remarkable. Plus now we�re a producer where we have acquired a fantastic asset in Uitkomst, and we have Vele/Makhado etc etc.

Makhado $135-$260m npv Vele $25-$30m (estimate from former CoAL employee) Uitkomst $21m (purchase cost used, now probably higher given coal prices and last 6-months results) GSP $75m (payment to Rio. NOMR to be granted this quarter. Long term $500m) Dirt cheap at these levels.

well if an institution selling then DB can at least make the investment case to them. i dont see market manipualtion either, nor do i think the seller has much more to go.

The company don't understand why we're down here as well if that's any consolation! I've spoken with them about the seller on the JSE and there's very little they can do except get see the share holders list at the end of the month and contact seller if it's evident who it is. But the volumes aren't huge. It's certainly not in the company's interest to have the SP down here. Hopefully we'll get more positive news soon. Cyril Ramaphosa should helping the mining companies in SA, and the Mining Charter was bad for everyone. We'll get a decision on Vele but the end of the quarter and hopefully we'll be granted the NOMR for the 3 mines in GSP and when you consider Chapudi is 3-times as big as Makhado there's enormous potential. And with Vele and GSP being previously valued at zero then we should get a decent correction to the share price.

good news. should move higher from here.

Brief notes from AGM, this was a few weeks ago and got to spend 25 mins at end with David Brown - i've left out some confidential bits. Most excited David Brown has been about project. Land access should be sorted this month, conclusion of court process; Have access to land -> get ready for mining; Uitkomst - been a great purchase, profit is up, generating lots of cash and outperforming budget; Demand great - can’t produce enough; Still looking for 2nd CGA - performing due diligence on 2 potential targets but criteria very tight; Vele decision in March. If decide to sell then Uitkomst almost cover operating costs; Makhado Take-off agreements finalised in Q1. In discussion 3 big names, could have sorted already but looking for better deal; Chinese massively keen to get Makhado up and running, will provide additional finance and will help with Vele if gets Makhado moving; Financing to be sorted out in next 6-months; Local population are excited about Makhado NOMR to be granted for 3 GSP mines - surround the SEZ so will be huge. Demand 5m tonnes/year on doorstep; New CFO is great, look at what she did at Impala; Wealth of mining experience; Loving coal prices;

I think 50p, closed at 0.025 and not a lot has happened on JSE. I was the only private investor at the AGM and had the opportunity to spend 30 minutes with David Brown at the end of proceedings. Hopefully we’ll have some positive news by the end of the year. A lot was said to me in confidence and don’t want to break that trust, but this is a gift at these levels, everything very positive and going very well. I’ve met David on a number of occasions prior to this and this was the most optimistic and positive I’ve seen him.

Update from conversations with company: Firstly, the company are still shortlisting potential CGA�s but are beginning preliminary due diligence in a couple of weeks on a company that fits the requirements and is affordable. Secondly, the company is equally frustrated with regard to the share price given what they�ve achieved. They are going to start marketing the company more. I can see their point that previously this was difficult with �the sword of Damocles� hanging over them. I�ve noticed recently there seems to have been a more positive spin in the press so maybe DB�s been on a charm offensive! Additionally, if they can either land a second acquisition or when they get Makhado going then they�ll be a medium tier producer and have a lot more visibility and increase the profile of the company. They are aiming to get a better spread of institutional shareholders, which will help liquidity in the stock. Again I�m left positive, they seem to be doing the rights things and they are confident a rise in the share price will come. They�re definitely getting there

Indeed. David Brown is producing the goods here. They've achieved a fantastic amount over the last nine months and it definitely feels like the strategy is coming together: 1. Rio Tinto resolution 2. sale of Mooiplaats (last of the legacy issues resolved) 3. IDC funding 4. Uitkomst acquisition 5. rework of the Makhado Lite . The next 6 to 12 months is exciting too: 1. Finalisation of the surface rights for Makhado. 2. Marketing/off take agreements 3. Funding for Makhado 4. Acquisition of a second cash generator 5. Vele - to sell or or mine Personally think someone will take us out before we mine Makhado

Update didn't contain anything that hasn't been posted on here. Need to sell Mooiplaats. Deal nearly done I believe

Celeste became CFO at Universal. A pretty good move for her. Might be useful when they take us over.

....part 2 Mooiplaats: they have 4 interested parties, one being someone who's currently producing. They are hopeful of finalising commercial discussions by the end of July. They are having to be creative in its disposal and may have to be a partner in a deal, or have the monies over a period of time rather than an upfront payment. He's frustrated by fact not been sold yet. They are looking for another similar sized acquisition. He suggested cash from sale of Mooiplaats and Vele could fund a similar sized CGA as Uitkomst will only generate income to cover 40% of current operating costs. They are very pleased with the Uitkomst deal, not the same as UC but a very good fit. They would be happy to reduce ongoing care and maintenance expenditure through disposal of Mooiplaats and Vele. Other costs have been reduced with various initiatives. Makhado Lite will reduce the need for expenditure and thus may not need the monies from MOU with Hengshun. Open to debate. For the rest of the funding, on the BBBEE side, no issue with the IDC (6%) and their local investor (20%). They will make up the 30% that is required with the change to 30% being announced today in the new mining charter in South Africa today. Rio debt is paid today and only debt on balance sheet is from IDC. They were very pleased to have all the legacy issues sorted, Rio have been watching they like a hawk. They now have $10m in cash and $9m they can draw down from the IDC loan if don't sell Mooiplaats over next 6 months. So all in all, I left the meeting with a very positive vibe and enthused about the prospects for CoAL. I’ve been to a number of these meetings and DB was certainly the most enthused he’s been. The legacy issues have been sorted and we are now in a good position footing both financially and strategically. I’m in no doubt that the management is doing a good job and will get us over the finish line. There was definitely a sense of achievement of the progress we’ve made and a level of excitement over Makhado Lite. It’s been a bumpy journey but to me, this should represent the turning point. Onwards and upwards.