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What a surprise, another lame insult from another ramper. Well trrime, I don’t see any news about those ‘bids in excess of the market cap’ that you’ve been posting about since January so forgive me if I don’t share your enthusiasm. ‘all would be revealed next week’ you said back then; by March it was ‘they will release the size of the bids before the 28th’; this month you predicted an update with the Mashala news; and all of this based on contact you claim to have had with directors of the Company. Ever get the feeling you’re being taken for a ride ? (You may be right about zirk though, lol)
Lol, I can’t figure out if you were being sarcastic or condescending there or just couldn’t follow my post. Whichever way I certainly don’t share your view that this is a strong buy at present, far from it.
On the contrary, I’m ready willing and able to buy back into this if I think it becomes investable again. Operationally I think they are sound and it speaks volumes that they avoided the industrial unrest that has affected so many other SA miners. Strategically I think they are suspect which is why I want to know how the bid talks concluded, what the outcome of the debt restructuring is and how they propose to fund De Witts before I decide if and when to proceed. I recognise and respect that you are happy to invest in the meantime. I think that whether I like it or not, the economics of coal have significantly changed and the situation that Conti now finds itself in is rarely reflected by the PR machine.
I used the term ‘we’ as in watchers of this stock. This forum is for exchanging views on stocks we are interested in whether invested or not and would be a much better place if PI’s used it to assess the merits and/or pitfalls of those stocks rather than indulge in the typical rampfest that goes on here. If you intend to take offence and offer up insults when simply presented with a differing viewpoint from your own then please ignore my occasional observations on this stock.
Some pretty chunky sells showing up now you'll be happy to see, but none are me. I thought you said you had been following this board for a while but I guess you must have missed when I posted that I don’t hold any shares here just now, sold up a while back when I took the view that the rosy picture the company presents isn’t matched by value enhancing deeds. Interesting if JB seems to have told you and ttrime different things via email but it’s of no matter. The fact I go on is that the company stated via RNS that updates would be provided by end of last quarter and yet here we wait. It’s that kind of behaviour that saps investor confidence and the current market is not in a state to be creating uncertainties in.
One minute it’s talk of multi market cap bids, now the story turns to fantasy revenue forecasts for a mine that hasn’t even been built yet. So much for JB’s alleged email to trrime last week saying that the long awaited corporate update would likely come with the Mashala update. Is anyone really surprised that it didn’t ? It won’t be long until Conti burns through the $8M Village Main money (assuming it’s received), then shareholders will wake up to having nothing left to show for giving away a huge chunk of the company. $2M to pay off the Range Resources loan and circa $6M parent company annual running costs, it’s a hungry beast. With the shares in issue already set to rise by over 40% based on current announcements and with a $16M debt restructuring still to come I remain of the opinion that it’s not what Conti tells you that matters, its what they don’t.
My guess is…shenanigans :) ...and news is overdue !
Rio Tinto’s Unloading of Coal Assets Suggest Weak Coal Prices, Long-Term Monday April 8, 2013, 10:11am PDT Mineweb reported that Rio Tinto’s move to unload some of its assets, including coal assets, suggests that they are uneasy about long term coal prices. As quoted in the market report: "It would appear that Rio is taking a view that thermal coal isn’t likely to be a strong performer over the longer term, which may be a reflection of the likelihood of slowing demand growth in China as its economic growth matures and pressure mounts for cleaner-burning fuels to combat pollution." http://resourceinvestingnews.com/53279-rio-tintos-unloading-of-coal-assets-suggest-weak-coal-prices-long-term.html
CeePee01, the updates due are : 10 January 2013 - Due diligence and bidding process completed with Indian based coal and power utility companies, major global commodity trading and private equity groups with offers received for the Company's interest in its South African business..an update is planned to be made in the current quarter. 19 February 2013 - The Company is also pleased to confirm that its discussions and negotiations in respect to a potential long-term off-take agreement, strategic partnership and stand alone funding agreement for the De Wittekrans Coal Project have advanced significantly over the past 2 months. Discussions on the stand alone funding and off-take financing are currently being advanced with 5 parties. A further update on the progress of these negotiations and the status of the Company's discussions with parties that have submitted offers for the Company's interest in its South African business and for the acquisition and/or joint venture of specific operating and development projects, will be made in the current quarter. 19 February 2013 - The Company is also continuing in its discussion with the lenders of its other convertible note facilities in respect to a long-term refinancing of the aggregate A$16m facilities. Discussions have progressed significantly over the past 4 weeks and a detailed update to shareholders on this will be provided later this quarter. I didn’t make it to the presentation hence my interest in your take on things. The only new thing I could see in the slides was the mention of dividends which seems long term aspirational. M1SAK, thanks for your comments. They should realise that to tell the market to expect updates then not deliver any is unsettling. Without sizeable asset sales the debt refinancing could involve yet more shares being issued which is why I think that clarity is required.
I’m genuinely surprised that as a serious holder of COOL you seem so unconcerned that they have failed to provide you with any of the three important updates that they said were to be given to shareholders by the end of last month. It just seems strange to me that everyone here is so relaxed about the situation. Did you get any comfort from last weeks event that the next corporate update will be good news for shareholders ? Can I ask what you are expecting to hear from them ?
Was it a MM game to put through a £12K 400,000 share trade as a purchase @ 3.2p on Thursday then wait until midday yesterday to reverse that out and re-book it as a sale @ 3.1244 instead ? Just bad timing I guess to make that mistake on the day of the great new glossy presentation. It’s a funny ol’ game indeed.
Webcast announcement http://www.asx.com.au/asxpdf/20130328/pdf/42dy80fq616yx9.pdf Webcast address www.brrmedia.com/event/110950 Billed as a Production and Corporate Update boardroom interview, says it's live @ 11.45 p.m. but I'm assuming it's been recorded in advance and is available to listen to from then. Time to put the kettle on.
BZM certainly doesn’t help sentiment and perhaps raises a bigger question there and here and one that AIM investors grapple with across multiple stocks and sectors; and that is ‘how highly do you rate the people running the company?’. The aims of the company may seem great but how well do we research the ability of the management to deliver on strategy. I’ll be tuning in this evening very interested to see what, if anything, COOL announce in Oz ahead of tomorrow’s meeting. Wish I was there !
The big bit of news missing is about the sale bids that the company were supposedly in talks about. I guess most of the johnny come lately’s that jumped in on those hopes have drifted away over the months since. Without that good news I think the main drag on the share price is COOL’s modus operandi of regularly creating new shares. Looking at recent announcements, they say : Balance of shares held at 1 July 2012 - 430,742,398 Shares issued during the half year: 02/07/12 – Conversion of debt to equity 6,038,647 09/07/12 – Conversion of debt to equity 9,113,001 03/09/12 – Conversion of debt to equity 10,000,000 20/09/12 – Conversion of debt to equity 8,370,540 05/10/12 – Conversion of debt to equity 7,259,390 18/10/12 – To consultants 1,537,796 02/11/12 – Conversion of debt to equity 6,830,602 02/11/12 – To consultants 409,837 22/11/12 – Conversion of debt to equity 9,213,762 22/11/12 – To consultants 552,826 30/11/12 – To consultants 1,000,000 06/12/12 – To consultants 273,771 06/12/12 – To lender 2,000,000 06/12/12 – To the finance facility investor 6,741,573 07/12/12 – Conversion of debt to equity 8,581,237 07/12/12 – To consultants 514,875 07/12/12 – To consultants 1,000,000 18/12/12 – To convertible note holder 939,346 Balance of shares held at 31 December 2012 - 511,119,601 Since year end : January 2013 - Conversion of debt to equity 10,453,698 January 2013 - To lender 2,000,000 January 2013 - Conversion of debt to equity 50,255,531 February 2013 - Conversion of debt to equity 47,572,181 To be approved at General Meeting : To investor - 100,000,000 To Directors - 7,970,782 By my reckoning that’s going to be just shy of 70% new shares issued in nine months and COOL are seeking at the General Meeting to retain the flexibility to issue equity securities in the future up to the 15% annual placement capacity without the requirement to obtain prior Shareholder approval. Shareholders were told to expect an announcement by the end of the quarter (so tomorrow maybe) on further debt restructuring. Hopefully it will not involve further dilution and they will instead finally update positively on the non core asset sale situation.
Out with the old and in with the new. I guess UK minority holders could hand their sale forms in at this, it would save them the cost of a stamp at least.
‘I will now disregard anything you say as it is clear you have no idea what you are talking about’ This from someone who has just posted that ‘COOL 100% own their producing assets’. Perhaps if ihnc stopped ignoring people he might learn a thing or two, like the shared ownership agreement that COOL has with it's BEE partner...
Not forgetting the rather speculative 30% rise on Friday ahead of today's actual news. C'est la guerre...
Nat, well, I'd say losing up to 90% of any amount invested is looked on as a huge loss to most PI's. $500 is like losing over £3000 on a £3500 investment. That's how far this has dropped in less than two years and includes the II that invested £AMillions in the 'Mashala' placement at $A0.43c (post consolidation price equivalent). Interesting to see that they paid a 12% premium for that and I can imagine PI's getting excited at the time at what that meant for future prospects. These PI's are being made the offer because they didn't panic, they stayed loyal and paid a high price. And I'm putting a good word in for them, lol.
Nat, those minority shareholders also bought in on hopes ‘that their shareholder value will increase significantly over time’. It’s because precisely the opposite has happened that they are locked in on huge losses. It's a damn shame how these PI's have gone from being supportive investors to become holders to be got rid of. As these investors were locked in and not selling, I can’t see how they are the cause of share price volatility. I’d say that was down to the in/out behaviour of the short term traders.
It's no suprise to me that in the race to sell assets or dilute shareholders, COOL has remained true to form. It looks like the price in Oz has settled close to the small shareholder offer price, I bet they liked reading that after seeing the value of their shares decimated :/