summary of today's presentation...6 Apr 2011 00:36
...courtesy of investingisatrickygame from iii's bb
"In short, I would say the investment is a very strong BUY!
They aim to increase the Reserves of coal through a $2.5 million drilling programme. When asked what Reserve figure they are aiming for, David Nel, CEO would not be drawn other than to say their goal is to increase the measured and inferred resource and categorisation of coal. However, on phase 1 & 2 they are looking at 300 million tonnes of coal and this is what they are immediately drilling. No figures for phase 3 & 4. Phase 5 which will start in about 6 months is expected to have a possible 1.5 billion tonnes of coal and is enormous!
Rail and road links are excellent. Rail needs some investment to support axel weight to carry a heavier load. They believe they have the capacity for 4 million tonnes from the east London port and 10 million tonnes per annum from Coega with this rail enhancement. Rail development is 6 months - one year.
They expect a capital raising, after Easter I believe. David Nel was asked about the Bankable Feasibility Study which would be required IF raising cash/debt finance at the Bank. He said there are lots of ways to raise cash and this was not necessarily the best way. They are also reluctant to dilute shares an intimated that if they did it would be minimal and at a much higher share price. Trasteel who just signed the contract for 2 million tonnes could be involved in some way, but there would be no selling of or dilution of mining licences!
A number of meetings are planned over the next week. I believe the ceo said he had to leave early to discuss another deal. I stand to be corrected on this.
A Powerpoint presentation can be found tomorrow on the Proactive Investors website under the heading ‘Events’ as can a video interview with Jeremy Metcalfe under the heading ‘Stocktube’
This is my best recollection and understanding of the presentation. If I have posted anything inaccurate that I have misunderstood, I apologise.
It will not have been done with intent."