Investors in Caledon Resources (LON:CDN, ASX:CCD) have been in for a rollercoaster ride this year, and the Australian coking coal producer is not letting them off just yet: it announced another approach for the group this morning, sending the shares up 15 percent.
Nearly to the day a month ago, the shares took a beating on news the group broke off talks with would-be bidders. It had been involved in a series of takeover negotiations this year.
Discussions started in April with 25 percent shareholder Polo Resources (LON:POL), though they eventually collapsed.
In July Caledon told investors it received "a number of unsolicited and indicative enquiries from third parties in respect of possible alternative transactions". At that point the company described negotiations as being at an “early stage”, though one of the putative offers placed a price tag on the business of 68p a share, or £153 million.
The deal was also characterised as “highly conditional” and “significantly undervaluing” the group - and therefore unlikely to receive boardroom support. News of the withdrawal of the indicative offer prompted last month’s sell-off.
In the latest episode of the takeover saga, Caledon noted the recent rise in the share price and confirmed it has received a further indicative approach and is again in preliminary discussions which may or may not lead to an offer for the group.
There is no certainty that an offer will be forthcoming and is advising shareholders to take no action at this time.
Caledon’s flagship project is the formerly mothballed Cook mine in Queensland it bought in 2006.
In 2009, Caledon mined 604,000 tonnes of coal from Cook, up from 548,000t in 2008.
The latest figures show the group’s raw coal production from operation rose 35 per cent to 174 million tonnes of raw coal in the three months to the end of June.
Caledon has targeted saleable output of 700,000 tonnes this year.
The group is currently carrying out a feasibility study on the neighbouring Minyango prospect, which it also bought back in 2006, which has a JORC compliant resource of 342 million tonnes.