Analyst Research Report Snapshot

Title:

COAL OF AFRICA - DEAL WITH EXXARO COAL

Price:

$10.00

Provider:

Edison Investment Research

Date:

29 Apr 2009

Pages:

2

Type:

AcrobatPDF

Companies referenced:

CZA.AX

Available for Immediate Download
Summary:

Coal of Africa’s recent quarterly report highlights the progress being made by this emerging coal producer. Most significantly, the company has struck a deal with Exxaro Coal (South Africa’s only coking coal producer and formerly part of Iscor’s mining division). Exxaro has acquired the option to purchase 30% of the Makhado project for cash at a 20% discount to its NPV (which we estimate to be c £275m). Given that Iscor explored this area extensively in the 1970s, Exxaro’s option to acquire a stake in Makhado represents a vote of confidence and support for the project. Excluding Makhado’s potential, we value Mooiplaats and Vele at 300p per fully diluted share, compared to the current share price of 63p. FOR MORE INFORMATION ON ATTACHED RESEARCH PLEASE CALL 020 3077 5713 OR EMAIL RESEARCH@EDISONINVESTMENTRESEARCH.CO.UK OR VISIT WWW.EDISONINVESTMENTRESEARCH.CO.UK

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