Caledon Resources
Caledon Resources plc was originally formed for the purposes of exploring precious metals in China. However in 2006 the company transformed from gold explorer to coal producer following the acquisition of the Cook Colliery and related mining operations in Australia, from Xstrata Coal Pty Ltd.
Since then the Company has acquired the adjacent Minyango project, an area situated in a region of strategic importance within the Bowen Basin, surrounded by some of Queensland’s premier coking and thermal coal mining operations.
The Company is now primarily focused on mining coking coal in Queensland. The company currently has coal resources (JORC), coking and thermal, totalling 366.5 million tonnes and 17 million tonnes of reserves.
Caledon Resources now cashflow positive
Caledon Resources, owner and operator of the Cook coal mine in Queensland's Bowen Basin, announced today that MD Mark Trevan would present at ABN Amro's Queensland Energy Conference, and that his presentation would draw attention to the fact that the company's cash-on-hand position now totalled AUS$40 million.
Trevan's presentation also provided an update on operations at Cook, including the fact that the mine was now generating positive cash flow, and that Caledon had no funding requirements in the short to medium term. Cash on hand has increased significantly from AUS$15.6 million as at the end of June to AUS$40 million at 14 November. Production for 2008 is forecast to be 425,000 tonnes of coking coal and 75,000 tonnes of thermal coal from a total ROM production of 600,000 tonnes. Continuing ramp-up of the Magatar mining system should enable 1.1 million tonnes to be mined in 2009, leading to saleable coal totalling 765,000 tonnes of coking coal and 150,000 tonnes of thermal coal.
Current focus of attention at Cook was an on-going cost reduction strategy, coupled with completion of the new pit bottom drift to enable re-location of Magatar mining operations to the Argo seam. Planned capital expenditure would secure 4 new cars for the Flexiveyor continuous haulage system and allow the completion and commissioning of the new thermal coal reclaim system.
Trevan also pointed out that Caledon's market value at just 20 cents per tonne of resource was some 16 times lower than the value attributed to recent coking coal acquisitions at New Saraji and Teresa. With 468 million tonnes of resource at Cook and the adjacent Minyango, where a pre-feasibility scoping study has commenced, Cook was well placed for future growth via potential development of Minyango or further expansion at Cook.
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Other Caledon Resources articles
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07/11/08 Caledon Resources - Cook starts to cut the mustard
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08/05/08 What's the story at Caledon Resources?
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12/01/07 Caledon Resources: On track.
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09/03/06 Caledon Resources: lonely and unloved?
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10/01/06 Caledon Resources: A C-Change ? Caledon, the coal miner
Other Caledon Resources news
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18/12/08 Caledon Resources retrenches to meet downturn
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23/09/08 Polo increases stake in Caledon Resources to 26%
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26/08/08 Caledon Resources Has First Month of Operational Profitability
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16/07/08 Caledon record June coal production at Cook
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08/07/08 Polo increases stake in Caledon to over 25 percent
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02/07/08 Polo increases stake in Caledon to 25 percent
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02/07/08 Caledon Resources increases resource at Minyango Coal Project
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20/06/08 Polo increases stake in Caledon to 24 percent
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17/06/08 Polo increases stake in Caledon to 22 percent
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04/06/08 Polo increases stake in Caledon to 18 percent