Caledon Resources
Caledon Resources plc is a dual listed public Company listed on the Alternative Investment Market of The London Stock Exchange and The Australian Securities Exchange (trading symbol: "AIM:CDN & ASX: CCD"). Caledon is a coking coal producer and explorer in the Bowen Basin of Queensland, Australia. It acquired the mothballed Cook Mine in late 2006 and has since recommissioned the operation and introduced an innovative new underground mining methodology. The Company also purchased the nearby Minyango exploration concessions in 2006 and has conducted a number of drilling programs in preparation for a feasibility study.
Wednesday, November 19, 2008
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.
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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28/08/09 Caledon Resources pares losses, outlook more encouraging for coal
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20/01/09 Caledon Resources in takeover discussions
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07/11/08 Caledon - Cook starts to cut the mustard
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20/05/08 Caledon Resources: What's the story?
Other Caledon Resources news
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26/02/10 Caledon Resources sets 700 kt coal sales target for 2010 as prices and demand recover
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12/02/10 Caledon Resources places loan notes to raise £4.2 million for working capital
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12/02/10 Caledon Resources places loan notes to raise £4.2 million for working capital
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28/01/10 Caledon Resources says 2009 saleable coal production in line, to explore expansion opportunities in 2010
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08/12/09 Caledon Resources ends offer talks after ten months of discussions
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26/10/09 Caledon Resources Updates on Cook Mine and Ongoing Discussions with Potential Acquirers
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29/09/09 Caledon Resources receives more interest to acquire the company
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07/08/09 Caledon Resources confirms Essar approach over possible cash offer
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06/08/09 Caledon Resources guarded over speculation of takeover by India’s Essar
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23/07/09 Arbuthnot reiterates Caledon Resources is a ‘Strong Buy’