| Wed 30 Sep 2009, 12:44 | | CZA - Coal of Africa Limited - Audited Abridged Final Results for the Year |
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CZA
CZA
CZA - Coal of Africa Limited - Audited Abridged Final Results for the Year
Ended 30 June 2009
Coal of Africa Limited
(previously "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
ISIN AU000000CZA6
JSE/ASX share code: CZA
(`CoAL` or `the Company`)
Audited Abridged Final Results for the Year Ended 30 June 2009
Coal of Africa Limited the AIM/ASX/JSE listed coal development company
operating in South Africa, is pleased to announce its audited final results
for the year ended 30 June 2009.
Despite the global financial crisis, the year ended 30 June 2009 followed on
from the successes of the previous year as the Company progressed from an
explorer and developer, to a mining company. The considerable cash resources
raised in the previous year allowed the Company to focus on the development of
the Mooiplaats thermal coal project in the Mpumalanga Province, South Africa
("Mooiplaats Project") and bring a greenfield project into production under
budget and in less than a year.
Highlights included:
- Upgrade of resources at the Makhado coking coal project in the Limpopo
Province, South Africa ("Makhado Project") to 1.33 billion tonnes (400 million
"measured") and at the Vele coking coal project, also in the Limpopo Province
("Vele Project") to 721 million tonnes (158 million "measured" and 324 million
"indicated");
- Production of first coal at the Mooiplaats Project in November 2008;
- Rail allocation secured from Transnet Freight Rail;
- Agreement reached with Grindrod Limited ("Grindrod") to secure port
capacity at the Matola terminal in Maputo, Mozambique ("Matola Terminal"),
initially 3 million tonnes per annum ("mtpa") and ultimately 13 mtpa;
- Selection of MCC Contracts, a division of Equestra Holdings, as preferred
partner for the Vele Project`s opencast mining operations;
- Mooiplaats Project coal handling and preparation plant ("CHPP")
commissioned in May 2009; and
- ELB Engineering Services contracted to build the first CHPP at Vele.
The full Annual Report will be posted to shareholders and is available on the
Company`s website www.coalofafrica.com
For more information contact:
Simon Farrell, Managing Director GVM
+61 417 985 383 or +61 8 9322 6776
Operational review
During the year, the operations of the Company included:
- Mooiplaats Project, based in the Mpumalanga Province;
- Vele Project, based in the Limpopo Province;
- Makhado Project, based in the Limpopo Province;
- Polokwane CoaL Laboratory, based in the Limpopo Province; and
- Holfontein thermal coal project, based in the Mpumalanga Province
("Holfontein Project").
The mining technical team was restructured at the start of the financial year
to improve role clarity and accountability. Key skills were also added,
ensuring in-house capacity in all key areas of operation.
Mooiplaats Thermal Coal Project (100%)
The Mooiplaats Project was developed from a site consisting of only farmland
and an abandoned box-cut at the start of the year under review, to an
operational mine by the end of the year. Surface facilities commissioned
included a fully functional coal handling and preparation plant.
Safety management of the site was exemplary, with in excess of 400 000 lost
time incident free man-hours achieved during the high-risk construction phase
up to the end of March 2009, with more than 500 contractors` staff present on
site during this period. Sadly, in July 2009, two contractor employees were
fatally injured in an accident resulting from the unlawful access to and use
of a vehicle by an unlicensed contractor. Immediately following the accident,
operations were halted for three days whilst investigations were conducted by
inspectors and mine officials of the South African Department of Mineral
Resources ("DMR"). Reassuringly, the results of the official inquiry indicated
no substantial breaches by the Company, but suggested legal prosecution of the
driver and several contractors` officials.
Following the successful dewatering, de-silting and deepening of the box-cut
to the floor of coal, the first continuous miner began cutting coal in
November 2008. The inclined conveyor infrastructure was completed whilst
mining portals were being established, thereby enabling mining development to
continue whilst the CHPP was being constructed.
Although the region experienced above average rainfall during the summer,
causing delays to civil construction, the project management team and
contracting firms were able to minimise delays to the overall schedule, and
the plant was successfully commissioned in May 2009. The second module of the
plant is currently under construction, with commissioning expected by November
2009. This will increase capacity from 110,000 to 220,000 run of mine ("ROM")
tonnes per month.
While good progress was made in the mining of initial underground coal access,
progressively more adverse geological conditions were experienced, leading to
an extensive reassessment of the geological structure and its potential effect
on the mining layout. Additional surface drilling and wireline logging,
supported by underground horizontal drilling, led to a better understanding of
detailed geological structure and subsequent adjustment of the mining layout.
Mining development continues through lean coal areas in two mining areas, one
utilising a Sandvik road header to progress through a faulted and steeply
dipping area and associated stone layers, and the other utilising a JOY
continuous miner. By the end of June 2009, approximately 3,400 metres had been
cut, yielding close to 50,000 tonnes of coal. The current lean coal mining
rate averages 30,000 tonnes per month, which can be increased to 80,000 tonnes
per month if required by the market. The intensified geological drilling
program has also proven closer proximity to the bituminous coal zone in one
area, which is anticipated to be reached by end of the calendar year. The
Company has meanwhile taken delivery of three full sets of mining equipment,
which will allow rapid build up of production as soon as the bituminous coal
zone is reached.
The mid-volatile coal product currently produced by the CHPP is transported to
the nearby Umlabo siding, which CoAL has negotiated access to from SA Coal
Mining Holdings Limited, and several train loads have been railed to the
Matola Terminal, in preparation for shipment to a customer by Q4 2009.
Development of the Overvaal siding, which is situated some 8km from the
Mooiplaats Project along the CoalLink railway line to Richard`s Bay and will
form the long term rail loading point, is expected to commence in 2010.
An application to amend the current New Order Mining Right ("NOMR") as well as
the supporting environmental management plan ("EMP") to include the farms
Klipbank and Adrianople, has been lodged with the DMR in Mpumalanga. This will
allow the development of the south decline in order to increase the life of
the mine. Meanwhile, the Company has also entered into negotiations with
parties holding rights to areas contiguous to the Mooiplaats North area, which
will lead to the extension of mining life in that area.
Mooiplaats is well on its way to building up production to 1.7 million ROM
tonnes in 2010 and approximately 3 mtpa in 2011.
Vele Coking Coal Project (74%, Signed Purchase Agreements for 26%)
Significant progress was made on the Vele Project during the year, and the
Company is expecting the NOMR to be granted by the DMR by the end of September
2009. The Company plans to implement the Project in two phases. Phase 1 will
comprise the establishment of a modular coal treatment plant with capacity to
deliver approximately 1 million saleable tonnes of blend coking coal per
annum, with ROM coal planned to be sourced from opencast mining. Because of
the modular nature of this plant, capacity may be doubled, dependant on market
conditions. Phase 2 will require the construction of the full-scale coal
treatment plant (the design of which has been completed by Dowding Reynard &
Associates) to deliver 5 million tonnes of blend coking coal per annum, at
which point the underground operation will be established.
The NOMR application, consisting of a mine works program ("MWP") and social
and labour plan ("SLP"), was submitted to the DMR in Limpopo in November 2008,
followed by the environmental impact assessment ("EIA") scoping report in
December 2008. Following this period, extensive consultation was conducted
with interested and affected parties ("IAP`s") whilst the EIA was being
carried out by a group of specialist consultants, each covering their
respective areas of expertise as required by the scoping report. The process
culminated in a widely publicised open day, held at a site near the Project
area in April 2009, which was attended by more than 170 persons representing
various interest groups. The comments received during this session, as well as
from the IAP consultation process, were taken into account in preparation of
the EMP, which was then submitted to the DMR in mid-May with the EIA
documents, together comprising more than 2,200 pages.
Some environmental groups have stated their opposition to the Vele Project due
to the sensitive nature of the area and the proximity of the Project to the
Mapungubwe World Heritage Site and National Park. The Company is confident,
however, that it has addressed concerns and designed sufficient mitigation
into the mining layout and processes to ensure co-existence with eco-tourism
and agriculture in the area. The Project will introduce much needed
investment, employment and economic growth into one of the poorest regions of
South Africa. The dual benefits of reduced imports by ArcelorMittal, as well
as potential exports from the Project to the national balance of payments,
also cannot be underestimated.
Capital expenditure to date consists mainly of land purchases to access
surface mining areas and accommodate critical infrastructure, as well as
investment in the development of a modular coal wash plant. The latter has
been designed by ELB Engineering in conjunction with PBA Projects, based on
designs used in the marine diamond mining industry, and will have the capacity
to generate 1 million blend coking coal saleable tonnes per annum. As
discussed earlier, plant capacity can be rapidly doubled, dependent on market
demand. Built and pre-commissioned off-site before being transported for
assembly at the mine site, the plant can be deployed and commissioned within
three months after access to site is made possible, in this case by the
granting of a mining licence. Phase 1 capital requirement is estimated at
ZAR350 million, whilst the establishment of the full-scale mine is expected to
cost in the region of ZAR3 billion.
Geological drilling continued to improve confidence in the structure and
quality of the mineable resources at Vele, supported by the completion of 3
large diameter drilling sites, aeromagnetic interpretation and geotechnical
assessment. Coal resources are currently indicated at some 721 million tonnes,
of which approximately 158 million tonnes has been proven to measured status.
A project feasibility report has recently been completed by GRD Minproc. An
exercise was concluded early in 2009 to select a preferred opencast mining
contractor, leading to the appointment of MCC Contracts ("MCC") in this
capacity. MCC is one of the largest mining contractors in South Africa, with a
significant mining equipment fleet available for rapid deployment and
expansion as required, releasing the Company from the burden of acquiring
mining equipment and reducing the capital requirements of the Project.
The Company has recently concluded agreements to acquire the remaining 26% of
the Vele Project to bring its ownership to 100%.
Makhado Coking Coal Project (100%)
During the year, the Company continued with its planning of the Makhado
Project, underpinned by extensive geological exploration and modelling. Coal
samples are currently being assessed at the Company`s newly commissioned
laboratory in Polokwane.
This Project will comprise an opencast mine, planned to deliver 5 million
tonnes of hard coking coal product per annum at full output. A similar phased
approach to that of Vele, utilising a modular coal processing plant, may also
be applied at Makhado. Current indications are that a modular plant first
phase with a capacity of 1 million tonnes of hard coking coal product per
annum, will require investment in the order of ZAR500 million, compared to
some ZAR2.7 billion required for the full-scale project.
Geological exploration drilling increased the measured resource base to some
400 million tonnes of the total resource, indicated at 1.3 billion tonnes.
Surface rights were obtained for the farm Tanga, and the mining exploration
camp relocated to Tanga from Fripp. Drilling of the first large diameter bulk
sampling site was completed on the farm Tanga, which is also the site for
which application for the mining of a coal bulk sample has been made to the
Limpopo office of the DMR. This is expected to yield 1,000 tonnes of coking
coal for analysis by ArcelorMittal in their coking ovens. Exploration drilling
also confirmed the presence of other coal horizons in the overburden of the
deeper coal to the North of the proposed open cut and a substantial resource
upgrade is anticipated in 2010.
NOMR application documents are currently being finalised and prepared for
submission to the DMR, which will be done as soon as section 11 approvals have
been received for the transfer of prospecting rights between CoAL and Rio
Tinto in terms of the agreed prospecting rights swap.
Polokwane CoAL Laboratory (100%)
Following the Company securing access to an unused abattoir site, the
construction of a world class analytical coal laboratory in Polokwane
commenced in April 2009. The facility is being managed by the international
laboratory group, Inspectorate, ensuring cost effective operation and required
accreditation. Most of the planned facilities have been commissioned, and
exploration drilling core samples for Vele and Makhado started being processed
in August 2009. ArcelorMittal has also recently indicated its desire to be a
50% partner in the laboratory.
Holfontein Thermal Coal Project (100%)
During the year, the Company received section 11 approval for Motjoli
Resources (Pty) Ltd to transfer 51% of the Holfontein Project to CoAL, whilst
discussions regarding the granting of the NOMR continued with the DMR. The
Company remains confident that the NOMR will be granted in the near future.
The Holfontein Project continues to be classified as an asset available for
sale.
IPP Submissions Pre-Qualified by Eskom
CoAL`s independent base load generation tenders for the Vele and Makhado
Projects, submitted jointly with Independent Power Producers ("IPP"), whereby
the IPP will supply Eskom with base load power, have been unconditionally pre-
qualified by Eskom.
The submission to supply coal to the proposed IPP located close to the Vele
Project was made jointly with Mulilo Energy (Pty) Ltd and China Railway
Construction Corporation, and with AES Energy Developments for an IPP in
proximity of the Makhado Project. In both cases, the coal supplied would be a
"middlings" product, a lower quality coal produced additional to the coking
coal. The economics of the Vele and Makhado Projects are not reliant on the
sale of the middlings fraction but, if successful, such sales would provide
substantial upside to these Projects.
Port Allocation
The Company secured long term port allocation for the export of coal mined at
the Mooiplaats Project through the Richard`s Bay dry bulk terminal ("Richard`s
Bay Terminal"), operated by Grindrod. The throughput agreement provides CoAL
with an allocation of 900,000 tonnes of coal per annum, commencing in 2009,
and includes the potential to increase its export capacity to 3 mtpa once the
terminal expansion is complete. In return, CoAL will participate in the
funding of the expansion.
Furthermore, CoAL has secured long term port allocation through the Matola
Terminal in Maputo, Mozambique and expects that the export of metallurgical
coal mined at its Makhado and Vele Projects will take place via this terminal.
The agreement with Terminal De Carvao Da Matola Limitada and Grindrod provides
for an allocation of 1 mtpa through the Matola Terminal, commencing in 2009,
and CoAL has secured the rights to up to 100% of any increased capacity at the
Matola Terminal in return for the Company participating in the funding of the
expansion. The first phase of Grindrod`s intended two phase expansion of the
terminal will increase CoAL`s export capacity to 3 mtpa and on completion of
the second phase of expansion, CoAL will have a total capacity of 13 mtpa of
the terminal`s annual 16 mtpa capacity.
During February 2009, the Company agreed to loan the required US$20 million
for the proposed 2 mtpa expansion at the Matola Terminal, which will increase
CoAL`s export allocation at the port to 3 mtpa. The increased port capacity is
expected to be effective from 1 August 2010 and discussions with TFR to secure
an additional 2 mtpa rail capacity are ongoing.
Rail Allocation Secured for Coking Coal Projects
Agreement was reached with Transnet Freight Rail ("TFR"), a division of
Transnet, the South African Government owned rail and freight organisation,
for the rail allocation of 1 mtpa to the Matola Terminal. This rail allocation
matches the Company`s current port allocation of 1 mtpa through the Matola
Terminal.
Negotiations with TFR for rail services for the transport of coal to the
Richard`s Bay Terminal were completed and the Company secured a five year rail
agreement for the movement of coal from its Mooiplaats Project to the
Terminal. TFR has allocated CoAL the current empty wagons returning from
ArcelorMittal`s Vanderbijl Park steel works, ensuring the Company will be able
to satisfy its initial 900,000 tonne dry bulk terminal port allocation at the
Richard`s Bay Terminal.
The Company successfully railed over 38,000 tonnes of third party coal to the
Matola Terminal during the year. Of the coal railed, over 22,000 tonnes were
shipped from the Terminal during the period, ensuring the viability of this
export route as an alternative to the Richard`s Bay Terminal.
Imaloto Coal Project in Madagascar (50%)
During the year, the Company acquired 50% of the interest in the Imaloto
Project located in the Massabi Basin in Madagascar. The interest comprises 25
blocks of 6.5km2 each. Exploration on the Project commenced during the period
and by year end, Phase 1 of the exploration programme on the North portion of
the Project, comprising over 2,522m, had been drilled and yielded bright to
intermediate coal seams. Coal samples have been sent for analysis and results
are expected shortly.
NiMag Group ("NiMag") (100%)
NiMag is engaged principally in the manufacture and distribution of nickel
magnesium alloys, ferro silicon magnesium alloys and metal fibres, having
begun producing alloys in 1962, and currently manufactures specialised master
alloys of nickel and magnesium for the specialised foundry industry including
aerospace, aeronautical, motor, steel mill roll and associated industries.
Ductile iron (also called spheroidal graphite iron or nodular cast iron) was
discovered in the 1940`s. The introduction of magnesium into the melt results
in nodular rather than flaky graphite in the resultant cast iron, giving the
cast iron properties approaching those of steel, while maintaining the
advantages of the casting process. The magnesium is usually added as a nickel
alloy, making it easier to add and contribute to product quality. NiMag
supplies the ductile iron market as a specialist supplier with a world market
share of about 35% in its core product line. 95% of sales are exported through
35 distributors world wide. Demand for NiMag`s alloys is proportional with
world demand for ductile iron, principally for automotive parts and industrial
machinery. Demand for NiMag products has grown gradually to meet current
capacity of 287 tonnes per month (all products). Potential for expansion of
the core nickel-magnesium alloy product is presently limited by the size of
end markets. NiMag is increasing the penetration of a variety of other
products developed for alternative markets. NiMag produces cast and slit
fibres which are used in reinforced concrete by domestic mining and tunnelling
operations.
NiMag`s competitive advantages include low electricity and labour costs. The
main input cost is locally sourced nickel raw material, which is matched with
sales to minimise nickel price exposure.
Significant depreciation of global nickel prices in the 2009 financial year
reduced NiMag`s margins as well as volumes, resulting in the Company
generating lower operational cash flows than those recorded in the previous
year. NiMag recorded a loss of $2.6 million for the year, primarily due to a
$1.7 million loss as a result of the revaluation of nickel inventory.
Events Subsequent to Balance Sheet Date
Mooiplaats Project Update
CoAL confirmed in early July that a revised mining layout had been finalised
following an extensive reassessment of the mine plan and geological conditions
at Mooiplaats. Depending on the rate of development, export quality thermal
coal is now expected to be reached in November 2009 at the earliest. There has
been no material amendments to the anticipated tonnage schedules of the
Project`s Life of Mine. Forecast ROM production for the next five years is as
follows:
Calendar 2010 2011 2012 2013 2014
year
ROM 1.7m 2.7m 3.1m 3.4m 3.2m
Production
Operations at the Mooiplaats Project are currently producing 30,000 ROM tonnes
per month of a mid volatile "lean" coal. In the event of an off-take agreement
for this coal being finalised, production can be ramped up to over 80,000
tonnes per month. The Company has already reached agreement on terms and
conditions for the off-take of the export quality thermal coal to be produced
at the Mooiplaats Project.
Vele Project Update
In early July 2009, CoAL confirmed that it will develop its Vele Project in
two phases:
- Phase 1 - the establishment of a modular coal treatment plant with the
ability to deliver approximately 1 million saleable tonnes (yield dependant)
of coking coal per annum. The capacity of the modular plant can be doubled
should ArcelorMittal wish to increase its off-take from the Vele Project, as
indicated in the letter of intent signed in April 2008.
- Phase 2 - this phase will deliver the planned full capacity of 5 million
tonnes of saleable coking coal per annum from the Vele Project and the
implementation thereof will be dictated by market conditions.
Phase 1 will be launched on approval of the NOMR Application submitted to the
DMR in November 2008.
First Train Loaded at Mooiplaats
In mid-September, the Company successfully completed its first sale and loaded
its first train of mid volatile "lean" coal mined at the Mooiplaats Project.
The coal was trucked from the mine to the Umlabo siding, from where it was
railed to the Matola Terminal in Maputo, Mozambique. Further trains will
continue to be loaded to utilize the maximum stockpile of approximately 80,000
tonnes at the Matola Terminal. Shipping is expected to commence in Q4 2009.
Makhado Project Update
In July 2009, CoAL announced that it is progressing with the planning of its
Makhado Project. The full scale production plan is based on the production of
5 mtpa of coking coal and a phased modular approach, similar to that used at
the Vele Project, may be applied at the Makhado Project. A phased approach
will lower initial capital requirements, enabling CoAL to self-fund the build
up into a full capacity mine. The phased approach or full scale development of
the mine will be determined by market conditions and the Company has prepared
the documentation required for the NOMR Application to be submitted to the
DMR. This application will be submitted once the Section 11 approval for the
swap of NOPR with Rio Tinto has been granted by the DMR.
Acquisition of 26% Interest in Limpopo Coal
During July 2009, CoAL executed two binding agreements to collectively secure
the remaining 26% interest in Limpopo Coal Company (Pty) Ltd, the subsidiary
company that owns the Vele Project. Satisfaction of the suspensive conditions
pertaining to the agreements will take CoAL`s interest in the Vele Project to
100%. The consideration payable for acquisition of the 20% interest is
5,625,750 fully paid ordinary shares while 1,990,000 fully paid ordinary will
secure the remaining 6% interest.
Black Empowerment Transaction
On 13 June 2008, CoAL entered into an agreement with Coal Investments Limited
("CIL"), pursuant to which CIL subscribed for shares and was granted an option
which, if exercised, would result in African Global Capital I, L.P. ("AGC")
and their affiliates holding in excess of 26% of the Company, ensuring full
compliance with South African legislative requirements for broad based black
empowered ("BBBEE") groups to have at least a 26% interest in mining companies
by 2014.
On 30 September 2009, the Company announced that it had entered into a further
agreement that replaced the abovementioned agreement with CIL. Pursuant to the
new agreement, CoAL has agreed to issue a total of 50 million options
exercisable at 60 pence each, expiring five years from the date of issue to
Firefly Investments 163 (Pty) Ltd ("Firefly") which is wholly owned and
controlled by historically disadvantaged South Africans. The options will be
issued to Firefly, subject to Firefly not being able to exercise the options
for a period of 12 months from the issue thereof. In addition, the issue of
the options will be subject to certain regulatory approvals, including consent
of the Australian Foreign Investment Review Board. The "in the money" options
will represent approximately 10.85% of CoAL`s issued capital upon being
converted into ordinary shares. Firefly will also have the right to nominate
two persons to the CoAL Board.
Appointment of a Non-Executive Director
At the end of August 2009, the Company announced the appointment of Mr Hendrik
("Kobus") Verster as ArcelorMittal`s nominee non-executive Director to the
CoAL Board. Mr Verster replaced Mr Pierre Leonard, who stepped down from the
Board as non-executive Director.
INCOME STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
Parent Entity
Consolidated Entity
2009 2008 2009 2008
$ $ $ $
REVENUE 35,764,074 53,774,119 20,979,810 6,030,020
Raw materials
and consumables (20,767,481) (37,846,682) - -
used
Consulting (2,077,698) (1,216,068) (696,644) (720,823)
expenses
Employee (8,015,315) (7,830,254) (1,867,059) (4,992,443)
expenses
Borrowing costs (127,427) (146,174) - -
Depreciation &
Amortisation (3,982,844) (202,372) (5,352) (27,430)
expenses
Office rental ,
outgoings and (1,313,820) (477,272) (553,734) (112,104)
parking
Decrease/(increa
se) diminution
in value of (2,332,074) - (1,502,382) -
investments
Loss on
investments (68,385) - - (7,919)
disposed of
Bad debt expense (11,181) - (11,180) -
Provision for
non-
recoverability (392,078) - - -
of loans/
debtors
Impairment in
value of control (1,125,000) - - -
entities/
goodwill
Foreign exchange
profit/(loss) 1,702,260 (10,503,875) 3,468,801 (10,503,875)
Other expenses
from ordinary (7,511,128) (5,875,381) (1,968,813) (555,355)
activities
Take or Pay (3,945,804) - (3,945,804) -
obligations
Profit/(Loss)
before income (14,203,901) (10,323,959) 13,897,643 (10,889,929)
tax
(expense)/benefi
t
Income tax
(expense) / (316,075) (919,604) (318,284) -
benefit
Profit/(Loss) (14,519,976) (11,243,563) 13,579,359 (10,889,929)
after tax
Outside equity - - - -
interest
Net
profit/(loss)
attributable to (14,519,976) (11,243,563) 13,579,359 (10,889,929)
members of the
parent entity
Basic earnings/(loss)
per share (in cents) (3.55) (4.08)
Headline earnings/(loss)
per share (in cents) (2.76) (4.12)
BALANCE SHEETS AS AT 30 JUNE 2009
Consolidated Entity Parent Entity
2009 2008 2009 2008
$ $ $ $
CURRENT ASSETS
Cash assets 87,032,875 252,004,859 85,471,992 251,347,737
Receivables 21,525,145 11,751,597 6,547,986 1,288,245
Inventory 8,614,773 4,885,106 - -
Other current 4,423,964 - 26,259 20,572
assets
TOTAL CURRENT 121,596,757 268,641,562 92,046,237 252,656,554
ASSETS
NON CURRENT ASSETS
Receivables - - 156,083,855 53,152,477
Assets held for 25,540,957 25,207,997 23,529,228 23,649,738
sale
Intangibles 3,706,781 3,169,660 - -
Other financial 23,598,640 8,099,845 232,940,524 173,019,725
assets
Property, plant 98,894,360 3,075,970 13,61 10,964
and equipment 4
Development
Expenditure 19,432,007 - - -
Deferred tax 53,526 187,475 - -
assets
Mining assets 186,120,103 174,932,316 - -
Logistics assets 43,184,441 - 43,184,441 -
Exploration
Expenditure 15,540,310 18,203,831 3,752,291 8,992,517
TOTAL NON CURRENT 416,071,125 232,877,094 459,503,953 258,825,421
ASSETS
TOTAL ASSETS 537,667,882 501,518,656 551,550,190 511,481,975
CURRENT
LIABILITIES
Payables 11,031,549 6,179,806 4,257,337 308,946
Provisions 262,081 111,738 10,395 2,734
Current tax 350,416 581,338 318,284 -
liability
TOTAL CURRENT
LIABILITIES 11,644,046 6,872,882 4,586,016 311,680
NON CURRENT
LIABILITIES
Payables - - 5,670,417 19,022,676
Interest bearing - 187,626 - -
liabilities
Provisions 2,383,801 - - -
TOTAL NON CURRENT 2,383,801 187,626
LIABILITIES 5,670,417 19,022,676
TOTAL LIABILITIES 14,027,847 7,060,508 10,256,433 19,334,356
NET ASSETS 523,640,035 494,458,148 541,293,757 492,147,619
EQUITY
Contributed equity 569,267,119 533,053,005 569,267,119 533,053,006
Reserves 7,189,525 4,270,160 9,013,216 9,660,550
Accumulated losses (36,986,578) (50,565,937)
(60,456,243) (45,936,267)
TOTAL PARENT
EQUITY INTEREST 491,386,898 541,293,757 492,147,619
516,000,401
OUTSIDE EQUITY 7,639,634 3,071,250 - -
INTEREST
TOTAL EQUITY 541,293,757 492,147,619
523,640,035 494,458,148
CASH FLOW STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Entity Parent Entity
2009 2008 2009 2008
$ $ $ $
Cash flows from
operating
activities
Interest received 13,653,573 4,502,639 12,732,776 3,971,998
Cash receipts in
the course of 20,400,464 49,252,248 - -
operations
Interest paid (127,427) (146,174) - -
Payments to
suppliers and (44,717,527) (56,618,474) (4,661,447) (2,212,535)
employees
Net cash generated (10,790,917) (3,009,761) 8,071,329 1,759,461
by /(used in)
operating
activities
Cash flows from
investing
activities
Payments for (83,262,594) (1,951,879) (8,002) (9,260)
property, plant and
equipment
Proceeds from the 434,979 - - -
sale of property,
plant and equipment
Payments for - - -
Development Assets (9,173,789)
Payments for (16,487,811) - - -
Surface Rights
Mineral assets (7,743,534) (85,341,442) (7,743,534) (85,341,442)
acquired
Proceeds from sale
of associate - 501,634 - 501,634
Sundry deposits (4,423,964) - - -
paid
Payments for equity
investments (11,704,052) (9,427,131) (6,163,552) (2,836,444)
Payments made for
logistics assets (43,184,441) - (43,184,441) -
Loans (made
to)/from other (6,214,809) - (6,214,809) -
entities
Exploration costs (7,594,698) (18,491,719) - (3,752,291)
Net cash generated (189,354,713) (114,710,537) (63,314,338) (91,437,803)
by / (used in)
investing
activities
Cash flows from
financing
activities
Proceeds from issue
of shares 37,469,162 331,294,448 37,469,162 331,294,448
Transaction costs
from issue of (3,466,112) (9,134,738) (3,466,112) (9,134,738)
shares
Loans to controlled
entities - - (144,647,951) (27,703,497)
Loans repaid to
other entities - (318,636) - -
Other loans repaid (187,626) (1,375,608) - -
Net cash generated 33,815,424 320,465,466 (110,644,901) 294,456,213
by financing
activities
Net
increase/(decrease) (166,330,206) 202,745,168 (165,887,910) 204,777,871
in cash held
Effect of exchange
rates of cash
holdings in foreign 1,358,222 (12,270,799) 12,165 (6,339,304)
currencies
Cash at beginning
of financial year 252,004,859 61,530,490 251,347,737 52,909,170
Cash at end of
financial year 87,032,875 252,004,859 85,471,992 251,347,737
STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2009
Ordinary Capital Foreign Share options
share profits currency reserve
capital reserve translation
reserve
$ $ $ $
Consolidated
Entity
Balance at 1 533,053,006 136,445 (5,390,389) 9,524,104
July 2008
Shares issued 37,469,164 - - -
during the year
Capital raising (3,466,112) - - -
costs incurred
Adjustments - - 3,566,699 -
from
translation of
foreign
controlled
entities
Transfer from 921,061 - - (921,061)
Option Reserve
Options issued - - - 273,728
during the year
Share based 1,290,000 - - -
payments
Minority - - - -
Interests in
Investments
Loss - - - -
attributable to
members of
parent entity
Balance at 30 569,267,119 136,445 (1,823,690) 8,876,771
June 2009
Parent Entity
Balance at 1 533,053,006 136,445 - 9,524,104
July 2008
Shares issued 37,469,164 - - -
during the year
Transaction (3,466,112) - - -
costs
Transfer from 921,061 - - (921,061)
Option Reserve
Options issued - - - 273,728
during the year
Share based 1,290,000 - -
payments
Profit/ (Loss) - - - -
attributable to
members of
parent entity
Balance at 30 569,267,119 136,445 - 8,876,771
June 2009
Accumulated Total Outside
losses Equity
interests
$ $ $
Consolidated Entity
Balance at 1 July 2008 (45,936,267) 491,386,898 3,071,251
Shares issued during the - 37,469,164 -
year
Capital raising costs - (3,466,112) -
incurred
Adjustments from - 3,566,699 -
translation of foreign
controlled entities
Transfer from Option - - -
Reserve
Options issued during - 273,728 -
the year
Share based payments - 1,290,000 -
Minority Interests in - - 4,568,383
Investments
Loss attributable to (14,519,976) (14,519,976) -
members of parent entity
Balance at 30 June 2009 (60,456,243) 516,000,401 7,639,634
Parent Entity
Balance at 1 July 2008 (50,565,937) 492,147,618 -
Shares issued during the - 37,469,164 -
year
Transaction costs - (3,466,112) -
Transfer from Option - - -
Reserve
Options issued during - 273,728 -
the year
Share based payments - 1,290,000 -
Profit/ (Loss) 13,579,359 13,579,359 -
attributable to members
of parent entity
Balance at 30 June 2009 (36,986,578) 541,293,757 -
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been
prepared in accordance with Australian Accounting Standards, including
Australian Accounting Interpretations, other authoritative pronouncements of
the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report covers the economic entity of Coal of Africa Limited and
controlled entities, and Coal of Africa Limited as an individual parent
entity. Coal of Africa Limited is a listed public company, incorporated and
domiciled in Australia.
The financial report of Coal of Africa Limited and controlled entities, and
Coal of Africa Limited as an individual parent entity comply with all
Australian equivalents to International Financial Reporting Standards (AIFRS)
in their entirety.
The following is a summary of the material accounting policies adopted by the
economic entity in the preparation of the financial report. The accounting
policies have been consistently applied, unless otherwise stated.
Consolidated Entity
2009 2008
$ $
2.(LOSS) / EARNINGS PER SHARE
Basic (loss) / profit per share
(cents per share) (3.55) (4.08)
Headline (loss)/earnings per (2.76) (4.12)
share (cents per share)
Weighted average number of 409,137,218 275,781,951
ordinary shares used as the
denominator
As at 30 June 2009, there were 20,336,544 (2008: 19,921,688) options
outstanding over unissued capital exercisable at amounts ranging between $0.50
and $3.25 (2008: $0.50 and $2.05). Diluted EPS was not calculated for 2009 as
the Consolidated Entity incurred a loss per share.
Audit Report
The annual financial statements for the year ended 30 June 2009 have been
audited by MooresStephens. Their unqualified audit report is available for
inspection at the Company`s registered office.
Directors
Richard Linnell - Chairman
Simon Farrell - Managing Director
Blair Sergeant - Finance Director
Alfred Nevhutanda -Executive Director
Steve Bywater - Non-Executive Director
Peter Cordin - Non-Executive Director
Pierre Leonard - Non-Executive Director (resigned 27 August
2009)
Hendrik Verster (appointed 27 August 2009)
Company Secretary
Shannon Coates
Principal & Registered Office
Level 1, 173 Mounts Bay Road
Perth Western Australia 6000
Telephone: +61 8 9322 6776
Facsimile: +61 8 9322 6778
Email: perth@coalofafrica.com
South African Office
CoAL House
Pinewood Office Park
33 Riley Road
Woodmead 2191
Telephone: +27 11 785 4518
Facsimile: +27 11 803 6654
Email: adminza@coalofafrica.co.za
Auditors
MooreStephens
30 September 2009
Sponsor
Macquarie First South Advisers (Pty) Ltd
Date: 30/09/2009 12:44:02 Produced by the JSE SENS Department.
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