Shares climb af­ter pos­i­tive post­ing

The Star Early Edition - - COMPANIES & NEWS -

JSE-listed ju­nior coal pro­ducer, Coal of Africa (CoAL), climbed 6.82 per­cent at 10.40am yes­ter­day to trade at 47 cents a share af­ter post­ing a pos­i­tive June quar­ter. Among oth­ers, CoAL said it had com­pleted the ac­qui­si­tion of the Uitkomst Col­liery, a cash-gen­er­at­ing as­set in KwaZulu-Natal, as well as the first tranche of R120 mil­lion of the loan agree­ment with the In­dus­trial Devel­op­ment Cor­po­ra­tion. For Baobab Min­ing and Ex­plo­ration of the Makhado Pro­ject, CoAL en­tered into a loan agree­ment with the IDC for fund­ing of up to R240m to its sub­sidiary Baobab for use in the Makhado Pro­ject in April. CoAL chief ex­ec­u­tive David Brown said the June quar­ter was pos­i­tive as CoAL had tran­si­tioned into a coal pro­ducer fol­low­ing the con­clu­sion of the ac­qui­si­tion of the Uitkomst Col­liery. “This ac­qui­si­tion was achieved along­side the com­pany com­plet­ing its first draw down of its IDC loan and im­por­tantly, the fi­nal legacy pay­ment to Rio Tinto,” he said. “Go­ing for­ward, CoAL will re­main fo­cused on the sale of the Mooiplaats Col­liery, in con­junc­tion with pro­gress­ing the re­vised devel­op­ment strat­egy for the com­pany’s flag­ship as­set, the Makhado Cok­ing Coal Pro­ject, which will de­liver pos­i­tive re­turns for share­hold­ers in the near-term.” – Di­neo Faku

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