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Continental Coal Limited (ASX: CCC, AIM:COOL, US-OTCQX: CGFAY) is a South African thermal coal producer with two operating coal mines, a third mine under commissioning and a large portfolio of exploration projects all located in South Africa's major coal fields.

Website:
http://www.conticoal.com/
Phone:
+61 8 9389 2111
Address:
Ground Floor, 20 Kings Park Road, West Perth WA 6005, Australia.
Super Sector:
General Mining - Coal
Sector:
Mining
Industry:
Coal
EPIC / Symbols:
ASX:CCC, LON:COOL
chart-size
*subject to change and depends on individual circumstances.

Continental Coal RNS Press Releases

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Continental Coal Articles, News, and Media Files

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Continental Coal Related Media

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Director dealings

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Date Director Trans Amount Type Price(p) Value (£) Holding %
08/11/13 L.D. Turvey FEES 1,000,000 ORD 0.00 0 0,000 N/A
13/09/13 L.D. Turvey BUY 1,514,900 ORD 2.10 31,813 3,258,175 0.48
09/08/13 J.P. Brewer BUY 100,000 ORD 2.00 2,000 3,950,000 0.58
16/05/13 J.P. Brewer BUY 50,000 ORD 3.13 1,565 3,800,000 0.56
15/11/12 J.P. Brewer BUY 100,000 ORD 2.75 2,750 1,000,000 N/A

BASIC RESULTS INFORMATION

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Date Type Turnover Profit EPS (p) Dividend (p) Currency
30/06/14 Full year 68.72 -33.68 0.00 0.00 AUD
31/12/13 Interim 38.60 -16.89 -2.29 0.00 AUD
30/06/13 Full year 62.23 -49.44 -6.78 0.00 AUD
31/12/12 Interim 29.74 -6.65 -1.37 0.00 AUD
30/06/12 Full year 82.11 -48.60 -12.91 0.00 AUD

Presentations & Company Media

Company Statement

Review of Operations

Continental Coal Limited  (ASX:CCC/AIM:COOL/US-OTCQX:CGFAY) is a South African thermal coal producer with a portfolio of producing and advanced coal projects located in South Africa's major coal fields.

Continental currently has three operating mines, Penumbra, Vlakvarkfontein and Ferreira, producing 2.8Mtpa of thermal coal for the export and domestic markets. In 2013/14 Continental is set to commence development of its fourth thermal coal mine, DeWittekrans. Continental is targeting a ROM production rate of 10Mtpa by the end of 2015.

The Company has concluded strategic off-take and funding agreements with EDF Trading for its export thermal coal production and recently signed a joint development agreement with KORES, Korea's state mining and exploration company.

Export Coal Off-take Agreements

Continental Coal has entered into a 20 year Coal Supply Agreement with EDF Trading under which EDF Trading will purchase at the benchmark API4 Coal Price the company's production of a high quality export thermal coal delivered FOB at the Richards Bay Coal Terminal. The company is currently selling its production of export thermal coal from the Ferreira Coal Mine to EDF Trading and future production from the Penumbra Coal Mine is also planned to be sold to them.

Under the terms of the Heads of Agreement EDF Trading also agreed to provide the Group with a US$20 million coal loan through an advance purchase of forecast thermal coal exports.

EDF Trading is a leader in the international wholesale energy markets. It is a wholly-owned subsidiary of EDF S.A., and with its own portfolio of assets, combined with those of the EDF Group businesses, it has the ability to source, supply, transport, store, blend and convert physical commodities across the wholesale energy markets.

Future Developments, Prospects and Business Strategies


To further improve the group's profit and maximise shareholders' wealth, the following developments are intended to be implemented in the near future:

The Group will continue to expand its coal interests in South Africa. It has established its first operating coal mine, namely Vlakvarkfontein; acquired and successfully operated the Ferreira Coal Mine since November 2010; commenced production from the Penumbra Coal Mine in November 2012; and has entered into a binding heads of agreement to acquire 100% of the shares in unlisted South African mining and export coal producing group Mashala Resources; and

The Group will develop these assets to production through its South African subsidiary Continental Coal Ltd.

These development opportunities, together with the current strategy of continuous improvement and an adherence to quality control in existing markets, are expected to assist in the achievement of the group's medium-term goal of developing highly prospective coal resources in South Africa, with early cash flow to fund its ongoing financial requirements and minimum equity dilution.

Looking Forward

    Strong operating and financial performance set to continue following maiden profit and record earnings achieved in 1H 2011/2012

    1.2Mtpa of domestic sales from Vlakvarkfontein  and 600,000tpa of high quality exports from Ferreira Coal Mine through the Richards Bay Coal Terminal

    Ferreira Coal Mine extension to mine life with acquisition of adjacent resources

    First coal production and sales of 500,000tpa from Penumbra Coal Mine of high quality export thermal coal from Richards Bay Coal Terminal in 2H 2012

    Finalisation of optimised BFS for De Wittekrans Coal Project and decision to proceed with development decision in 1H 2013

    Completion of pre-feasibility study, upgrade of JORC resource and commencement of BFS for Vlakplaats Coal Project

    Commencement of Phase 2 exploration program and potential for strategic joint venture for Botswana thermal coal leases

    Further consolidation and expansion into Southern Africa and other major global coal producing regions, including Colombian coking coal

 

Current Operations

Vlakvarkfontein

Key Points

Conventional open cast contract mining operation
17 Mt of proven Reserve sufficient for +10 year mine life
Mining contractor, TMS, appointed 1 February 2010
First coal production and sales in May and June 2010
From acquisition to production within 12 months
Crushing and screening commenced in August 2010
Sales of +100,000t/month domestic quality thermal coal
Oppportunity to produce in excess of targeted rates
Eskom contract signed in March 2012
One of only 25 direct suppliers of coal to Eskom
Set to achieve 3rd successive year of record production, sales and earnings
FY2013 ROM forecast production of 1.5Mt, a 23% increase on FY2012
Coal sales of 1.3Mt forecast for FY2013, a 5% increase on FY2012
ZAR244m forecast revenue for FY2013, a 10% increase on FY2012
Gross operating profit of ZAR80m, forecast for FY2013, a 50% increase on FY2012 

Vlakvarkfontein Location Map

 

Ferreira

Key Points:

Conventional opencast contract mining operation
Mining initially commenced in August 2008, with new opencast pit development in November 2010
Located 2km from the Company's 1.8Mtpa Delta Processing Plant and adjacent to 1.2Mtpa Anthra railway siding on the coal-line to Richards Bay
Production of a high quality export thermal coal product sold to the international export markets out of Richards Bay Coal Terminal
Year to date (30 April 2012) ROM coal production of 574,419 tonnes and export sales of 496,065 tonnes achieved at the Ferreira Coal Mine and the Delta Processing Operations with an unaudited net profit after tax of ZAR37.1m reported against a budget of ZAR24.4m
Budgeted coal production for 2012 year of 600,000t ROM
Extension to mine life: Continental Coal's subsidiary Mashala Resources has acquired the right to develop the Prospecting Rights comprising Portions 25, 27 and 100 of the farm Witbank 262 IT
Prospecting Rights are located immediately adjacent to and adjoining the current open cast mining activities
Mine planning work has now commenced on the Prospecting Rights to incorporate them into the Ferreira Coal Mine’s new and extended mine plan
Mining activities at Ferreira are now planned to extend from the current open cast operations across and into the recently acquired Prospecting Rights
Mining of an additional 600,000 to 700,000 ROM tonnes is forecast from the new acquisitions, subject to receipt of Government approvals
Acquisitions demonstrate the strategic importance of the Delta Processing Operations, the Anthra Rail Siding and ability to export coal through the Richards Bay Coal Terminal  


Ferreira Location Map



Penumbra
Overview

5km from Ferreira Coal Mine
Conventional underground bord and pillar operations
Total JORC compliant resources of 68.3Mt, with 5.44Mt saleable reserves
ROM production beneficiated through the existing and adjacent Delta Processing Operations, which comprises a 1.8Mtpa coal processing plant and the 1.2Mtpa Anthra Rail Siding
First export thermal coal sales completed from the Penumbra Coal Mine
First of two Continuous Miners successfully commissioned underground and operating at the C-Lower coal seam face
Second Continuous Miner and associated underground mining equipment arrives on site and to be commissioned early in the March 2013 Quarter
Initial drawdown of the ABSA Capital ZAR253m project finance facilty completed with funds to meet outstanding capital development costs and underground mine equipment costs
Financial settlement of Penumbra Coal Mine coal hedge contracts for the December Quarter of 12,900 tonnes result in a hedging gain of ZAR3.0m
Coal hedging program with ABSA Capital of approx. 664,550 tonnes at average of ZAR1,057/t

Project Economics


In FY 2013, sales of approx. 200,000t of a high-quality export thermal coal are forecast from the Penumbra Coal Mine at total free-on-board (FOB) costs of ZAR471/t (approximately US$55/t) and forecast to generate approx. US$17m in revenue this financial year  
Revenue from the Penumbra Coal Mine is forecast to rise to approx. US$45m in FY2014 on full year export thermal coal sales of 500,000 tonnes, and generating between US$15m and US$20m of forecast cashflow based on current export coal prices  
Initial10 year mine life at forecast average total FOB costs of ZAR490/t (May 2011 terms), approx. USD$57/t  
Annual ROM coal production 750,000 tonnes
Forecast primary yields 67%
Annual export coal sales 500,000 tonnes
The Penumbra Project

Management

Mr Mike Kilbride - Non-Executive Director
Qualifications
    B.Sc. (Hons) Mining Engineering - Royal School of Mines, London (1976)
    SA Mine Managers Certificate - Metalliferous (1980)
    SA Mine Managers Certificate - Coal (1983)
    Management Development Program - Unisa (1985)
    Mining Taxation Certificate - Unisa (1995)
    Senior Executive Program, London Business School (2003)
Experience
Mr Kilbride brings with him more than 35 years broad experience and knowledge in the international mining sector encompassing various commodities, mining and beneficiation methods. During this period Mr Kilbride has held various senior management positions in charge of world-class mines primarily associated with the bulk commodities and supplying markets into Asia, Europe and South Africa.

Mr Don Turvey - Chief Executive Officer
Qualifications
    BSc Mining Engineering
    Masters in Business Leadership
    Mine Managers Certificate of Competence
Experience
Mr Turvey is a mining executive, with more than 27 years experience in the coal industry. His career includes senior management roles in production, project execution, business development, minerals resource management mainly with BHP Billiton. He spent most of his time in SA with exposure in countries like Australia, North America and Indonesia. He is past President and member of the SA Colliery Managers Association, member of the SA Institute for Mining and Metallurgy and member of the University of Pretoria Mining Advisory Committee.

Mr Jason Brewer - Executive Director
Qualifications
    Masters of Mining Engineering
    Masters of Mineral Law and Policy
Experience
Mr Brewer has 18 years international experience in mining, equity investment, corporate and project financing, capital raising, investment advising and evaluation of resource companies. He is a qualified mining engineer with operating experience in Canada, South Africa and Australia and has worked for several international investment banks and also managed Australia's largest ASX-listed resources fund. He also holds a number of non-executive directorships with several public resource companies.

Mr Bernard Swanepoel  - Non Executive Director
Qualifications and Experience
Mr Swanepoel, BCom (Hons), BSc (Mining Eng), was appointed director of Village Main Reef (“VMR”) (formerly, Village Main Reef Gold Mining Co. Ltd.) in June 2008 and was appointed CEO of VMR in May 2010. He has been joint CEO since May 2012. He started his career with Gengold in 1983, culminating in his appointment as General Manager of Beatrix Mines in 1993. After joining Randgold in 1995 as Managing Director of Harmony Mine, Bernard became CEO of Harmony from 1997 to 2007 when the company grew to become one of the world’s top 5 gold producers

Mr Connie Molusi
- Non Executive Director
Qualifications

    B. Journalism (Rhodes University) 1987
    MA (Notre Dame University, Ind. USA) 1993
Experience
Mr Molusi is currently the Chairperson of SIOC-cdt, where in November 2011 Subscription and Shareholder Agreements were executed with the Company under which SIOC-cdt has become Continental's new partner in South Africa.
Mr Molusi brings with him more than twenty five years broad experience and knowledge in South Africa's business sector. Mr Molusi previously held the position of Executive Director and Group Chief Executive Officer of Johnnic Communications, South Africa's leading media group.

Mr Johan Bloemsma - Non Executive Director
Qualifications
    BSc Mining Engineering - University of the Witwatersrand
    Graduate Diploma of Engineering - University of the Witwatersrand
    Master of Business Leadership - UNISA
    Metalliferous and Coal Mine Managers Certificate Professional Memberships
    Fellow of South African Institute of Mining & Metallurgy
Experience
Mr Bloemsma is a highly experienced and respected senior coal mining executive with 41 years in the coal mining industry. His career includes directorships and executive management roles in coal production, project management, mergers and acquisitions and business development predominantly with Anglo American PLC and Anglo Coal. His extensive career has involved coal mining in all the major coal producing regions of the world.

Mr James Leahy - Non Executive Director
Experience
Mr Leahy has more than 26 years experience in the mining sector as a senior mining analyst and as a specialist corporate broker with expertise in international institutional and hedge funds, foreign capital and private equity markets.
As a founding partner of the natural resources team at Mirabaud Securities, one of the leading UK based stockbroking firms, offering specialized and quality stockbroking to corporate and institutional clients, Mr Leahy has advised a number of natural resource focused funds in the UK, raised more than US$2 billion in equity for resource companies and participated in over 30 IPO's.

Mr Johan Heystek - Chief Operations Officer
Qualifications
    BSc Mining Engineering
    Masters in Business Leadership
    Mine Managers Certificate of Competence
Experience
Mr. Heystek is a mining executive with more than 25 years experience in the coal industry. He is a registered professional engineer and served as a director on the boards of Mine Rescue Services and Ingwe Collieries. His career includes senior management roles in production, project execution, business development and minerals resource management at Trans-Natal and Ingwe Collieries. Since September 2006 he has held the position of CEO at Mashala Resources. He is a member of the SA Colliery Managers Association and of the SA Institute for Mining and Metallurgy.

Mrs Rachel Hebron
- Chief Financial Officer
Qualifications
    BCom (Hons), CA (SA)
Experience
Mrs. Hebron completed her Honours Degree at the Rand Afrikaans University in 1992, qualifying as a Chartered Accountant in 1995.  She has held various financial management positions in the Security, Retail, Electronics and IT Businesses of Unihold Limited. She joined the Head Office team of Unihold Limited (a JSE top 100 company) in 2000. Mrs. Hebron joined the Unihold Limited board in 2003.  Mrs Hebron was appointed Chief Financial Officer of Mashala Resources in 2006. She recently successfully completed an Executive Program in Mining at the Mine Qualifications Association.

Mr Ken Hodge - Projects Manager
Qualifications
    BTech Mining
    Mine Managers Certificate of Competence (Metalliferous & Coal)
Experience
Mr. Hodge is a professional mining engineer, registered with ECSA and has more than 35 years experience in the underground and opencast coal exploration, development and mining industry in South Africa. His career includes senior management and technical appointments in mining and operations with major coal mining companies such as BHP Billiton and Xstrata. Mr Hodge's specialty is integrated mine planning.

Mr Haroon Alli - Head of Marketing
Qualifications
    BSc Mechanical Engineering
    Masters in Business Leadership
Experience
Mr. Alli is a mechanical engineer by profession and also holds a Masters in Business Leadership degree. He spent a decade in several engineering-based organizations after which he joined Shell South Africa. His career in Shell's Oil and Mineral Divisions spanned 20 years, culminating in his appointment as Commercial and Marketing Manager within the Mineral's Division. This was followed by his appointment as MD of Noble Energy's SA subsidiary, Noble Asia Pacific Limited, situated in Johannesburg. Mr Alli is a founding shareholder of Mashala Resources and as Marketing Director he handled the marketing side of Mashala's business, both export and local, including the acquisition of third party coal.

Mr Zach Zulu - Head Human Resources
Qualifications
    MDP cert. (AIM), Accredited Financial Management
    Diploma in Labour Law and Masters in Business Management (MBA)
Experience
Mr. Zulu has 14 years experience HR/Payroll in junior & supervisory level positions and has 11 years in Human Resources Management including several positions at BHP Billiton. From August 2010 Mr Zulu joined Riversdale at ZAC mine held Sustainable Development Manager position and more recently joined Continental Coal as Head of Human Resources.

Major Shareholders

  • Additional Information
    Market
    AIM
    EPIC
    COOL
    Share Price
    1.15p
    Change
    0
    Volume
    0
    Dividend
    0
    EPS
    0.00
    Shares
    7,816.93 m
    Offer
    1.3
    Bid
    1
    Avg. Vol
    372
    Yield
    P/E
    Mkt Cap
    £89.89 m
  • Contact Information

    AustraliaGround Floor1 Havelock Street
    West Perth
    Western Australia 6005
    Phone: +61 (0) 8 9488 5220
    Fax: +61 (0) 8 9324 2400

    South Africa9th Floor Fredman Towers13 Fredman DriveSandton 2196Republic of South AfricaPhone: +27 (0) 11 881 1420Fax: +27 (0) 11 881 1423

    Email: admin@conticoal.com

     

    Corporate Information

    Directors
    Mike KILBRIDE (Non-Executive Chairman)
    Don TURVEY (Chief Executive Officer)
    Jason BREWER (Executive Director)
    Bernard SWANEPOEL (Non-Executive Director)
    James LEAHY (Non-Executive Director)
    Connie MOLUSI (Non-Executive Director)
    Johan BLOEMSMA (Non-Executive Director)

    Company Secretaries

    Dennis WILKINS
    John RIBBONS

    Registered Office
    Ground Floor
    20 Kings Park Road
    West Perth WA 6005
    Phone: +61 8 9389 2111
    Fax: +61 8 9389 2199

    Principal Place of Business
    9th Floor Fredman Towers
    13 Fredman Drive
    Sandton, South Africa 2196
    Telephone: +27 11 881 1420
    Facsimile: +27 11 881 1423
    Email: admin@conticoal.com
    Website: www.conticoal.com

    Country of Incorporation
    Australia

    Auditors
    BDO Audit (WA) Pty Ltd
    38 Station Street
    SUBIACO WA 6008
    Telephone: (08) 6382 4600
    Facsimile: (08) 6382 6401

    Share Registry
    Computershare Ltd
    Level 2, Reserve Bank Building
    45 St Georges Terrace
    PERTH WA 6000
    Telephone: (08) 9323 2000
    Facsimile: (08) 9323 2033

    Home Exchange
    Australian Stock Exchange Limited
    Exchange Plaza
    2 The Esplanade
    PERTH WA 6000

    ASX Code: CCC

    NOMAD
    RFC Ambrian Limited
    Level 15
    QV1 Building
    250 St Georges Terrace
    PERTH WA 6000
    Ph:  +61 8 9480 2505
    Fax: +61 8 9480 2511
    www.rfc.com.au

    UK Advisers
    Broker
    Investec Banking Plc
    2 Gresham Street
    EC2V 7QP
    United Kingdom
    Ph: +44 20 7597 4000
    Fax: + 44 20 7597 4070
    www.investec.com

    UK Lawyer
    Memery Crystal LLP
    44 Southampton Buildings
    Holburn
    London
    WC2A 1AP
    Ph: +44 (0) 20 7242 5905
    Fax: +44 (0) 20 7242 2058
    www.memerycrystal.com

    UK PR
    Pelham Bell Pottinger
    5th Floor, Holborn Gate
    330 High Holborn
    London
    WC1V 7QD
    Ph: +44 (0)20 7861 3232
    Fax: +44 (0)20 7861 3233
    www.pelhambellpottinger.co.uk

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