Member Info for Bozmo

i'm hearing: Vele water licence is done, just waiting for official to sign it off CGA - funding in place, waiting to hear if preferred bidder

I couldn't possibly comment :-)

Makhado funding to be completed by June 2017. CGA funding to be completed in next couple of weeks. Worth buying in next couple of weeks ;-)

Here are myAGM notes. I'll try and expand or answer any questions. Present: Bernard Pryer (Chairman) and David Brown Others there: 3 shareholders, maybe a journo and few from Tavistock Communication where held; Dealt with main business and resolutions; went through with no issues; One investor questioned why options vested were given cash despite being under water. DB corrected that the cash amount was just the value of the options given by the Black-Scholes model. These pure options are now performance rights which are only granted if total shareholders return is achieved. It’s not free cash! Slightly tedious as always and lasted 15-20 mins before DB said a few words and said investor above asked a few questions. I’ll incorporate what was said into my conversation with DB afterwards. I’ve met DB a number of times previously and have regular e-mail contact and given that confidentiality will not share everything he said. Given the coal price performance positive, the outlook is bright. DB believed the market cap of the company is low relative to NAV/IRR of project; regulatory environment that needs to be completed; Makhado: Water license expect to be granted first quarter 2017; surface rights in 3 of the 5 areas complete. They could have completed the water license this year but decided to wait. There will be additional costs when the licence is granted so decided there’s no urgency. Confident will be approved again. Vele: Expect the perennial stream water licence to be granted over the next couple of weeks. The decision whether this gets the go ahead will probably be heard at the March board meeting. Sounded positive that it will. Mooiplaats: He presented some initiatives to the board this week (again not say what they were). He’s still confident that it will be sold but it’s been frustrating. I suggested they might mine it themselves but with $20m required over 4 years for a project that would last 11 years they would rather not invest that sum. Cash: The key date is June 2017 when the final Rio Tinto payment is due. He didn’t go into detail but said there were a lot of initiatives going on and was confident they would come to fruition. He doesn’t expect this to be an issue. CGA funding: Expect a mixture of debt and equity with it being difficult to arrange a debt package lent against future cash flow 4-years down the line so some part liquidation but will allow environment for re-rate. Some will be raised by selling stakes in individual projects. They are all well supported by current shareholders (see the memorandum for Universal deal): Had some funding talks over last few months; expect accelerate funding discussions with everything in place by June 2017; CGA: This wasn’t really mentioned during the AGM but we discussed at length. They have been talking to Keaton and when I mentioned yesterday’s Keaton news he had a glint

Another big jump in Chinese coal prices overnight, +4.91%, Rebar and Iron Ore up 3.02 and 1.8% respectively

http://www.herald.co.zw/6bn-industrial-park-to-bolster-sino-zim-ties/ kind of interesting given their holding in CZA and proximity of Zimbabwe to Limpopo

Well as been mentioned previously they are looking to acquire a cash generating asset first. For Vele, they will make a decision on whether to make the plant modifications to restart once the non-perennial stream diversion approval has been granted. They will consider current prices and forecasts when making the decision. This approval is expected this quarter. From conversations with the company, they appear to be keen to start up, especially now with coal prices where they are. So potentially we will have a cash generating asset and Vele back in production. With the AGM on the 25th November, I believe the company are working to this deadline so it can be approved then. DB stated their plan was to sell Mooiplaats. I presume that is still the case. I’m surprised we haven’t sold this given the fact that a number of interested parties were conducting due diligence. I am not sure whether the scheduled “2017 Sales and Revenue” RNS for tomorrow will provide any ‘new’ information. When I spoke with Celeste (investor relations) a month ago, she suggested then we might be in an open period at the end of October and I recommended some of the directors step up and buy stock. In my opinion our assets were massively undervalued prior to the rally in underlying coal prices. Additionally, the declining Chinese Renminbi means companies are looking to invest in hard assets denominated in dollars and other non-CNY currencies. Given the free float of this stock, any potential production news or positive RNS should result in a quick correction to the upside of the s/p

futures prices on the march higher again: coal +4.65% rebar +4.685 iron ore +5.96%

I also thought we might buy wescoal but that's flying. highest price since november 2013! think we've missed a great opportunity to pick up something dirt cheap *WESCOAL SEES 1H HEADLINE EPS BETWEEN 23.2, 27.8C VS 5.1C

thanks jantand. always here, just a waiting game!

http://www.barchart.com/commodityfutures/ICE_Richard_Bay_Coal_Futures/LV The cutbacks in China seem to be having an effect, and a number of investment banks have increased their forecasts for 2017. I'm surprised we're not higher, and fully expect us to play catch-up at some point soon on any positive news. Given the current prices, Vele is now feasible especially as DB himself said, prices are now expected to remain higher. We are due an update on 28-October. I was hoping after previous conversations with the company that they would provide more colour on the acquisition of the cash generating asset on this date, with shareholder approval to be granted at the AGM in November. Maybe slightly optimistic on my part but they had hoped to have the asset nailed down by the end of October. I do believe there will be a further wave of consolidation in the South African mining sector, and we are part of that process as opposed to being an outright take-over target. I have faith in the management team to deliver, and if they don't then i'm sure we're be snapped up by a major Chinese/Indian player. if management can get it right, secure the IWUL, then this is a sure multi-bagger from these levels, especially in the longer term when you consider the size of our GSP assets relative to Makhado.

I fully anticipate that we’ll get another delay reported tomorrow. This seems to be in line with market thinking and there doesn’t seem to be any expectation that the deal will be done tomorrow. I’ve no doubt we’ll takeover Universal in due course, and when it does happen we’ll get a sharp rally as market not pricing deals until they happen. Delay or no delay, the bigger picture is exactly the same, and we are still acquiring the same assets whether in a couple of weeks or somewhat later this year.

JSE closed at 83 ZAr. With sterling collapsing and GBPZAR currently at 19.11, this equates us 4.34p. Hopefully play catch up soon. i've also had confirmation from the company that the money raised is in US$ not sterling.

I asked about funding a couple of weeks ago. Reply was along the lines of 'making progress and positive' and working towards the advertised close date, but won't relax until receive signed undertaking.

Market waiting for deal to happen before pricing. Assume those selling today are those who bought ahead of today. Nothing's changed. Still getting hands on UC assets

Crude traded to 10-month highs today, now around $51.50. Coal back at $80 would be helpful!! Like the way we filled the gap today, happy see consolidate here before next leg higher. Lot of blue sky on chart and very evident dips to be bought. Closed down but think today was a good day, always going to be a few taking profit, was only a couple of weeks ago that some were refusing to pay 2.5 as spread was too wide.

July 2009 for my first dabble here! I'll be long retired well before 50p!!!

The company and coal market have fundamentally changed: David Brown has turned this company around after some poor decisions in the past. We are likely to get re-rated when UC deal goes through. The environment has meant we actually need to own the assets before re-rating. Commodity markets are when the markets at currently, and massively outperform other assets. We have a huge amount of coal. Nobody has even mentioned GSP. Absolutely huge resource. In meantime we have UC (3.8mt) and then Makhado (5.8mt) plus potentially Mooiplaats and Vele, and any other assets we might acquire as likely to be further consolidation in sector. And remember once UC deal goes through we are supplying Eskom. I suggest anyone new goes through some good posts here. And more importantly bring up a 5-year daily chart. The length of consolidation at these levels means will have a powerful move higher. Free float is 12.8% officially. Reality much lower as I'm aware of further strong hands who will not sell in the foreseeable future. DYOR but still a gift at these levels.

With the greatest of respect, I only share on here information that I know to be true, whether macro economics, coal specific news or insight gleaned from company. I have also met David Brown and do have lines of communication with him. I will now keep that to myself. To put out bearish comments encouraging people to sell so you can buy is just outright dishonesty in my opinion and not within the spirit of this board. Disseminating false information is also in breach of FCA rules. I for one appreciate research contributors such as Jantand and Hemmings make. Good luck to all holders

So the CEO of the company is back from China having pretty much agreed financial deal and believes will stick to committed timelines. They are taking over a company which will undoubtedly see a re-rating from explorer to producer. So please explain your ‘no action’ comment? Unfortunately for you two clowns, you are determined to pay the lows, which is never going to happen here. And your de-ramping lacks any intelligence and shows a complete lack of knowledge and understanding of the company. Good luck.