CoAL still seeking cash-generating asset amid sector upturn
Coal of Africa (CoAL), which is planning to build a large mine at Makhado in the Soutpansberg, is evaluating the sustainability of the recent "sensational" rise in coking and thermal coal prices before taking an investment decision on Makhado and Vele, says CEO David Brown. CoAL’s shares added about 8% to 56c after it released its September quarterly report. They touched a year’s high of 114c in June when CoAL was pursuing a takeover of Universal Coal, which would have brought in a cash-generating asset. In July, CoAL had to walk away from the deal because it was unable to meet all the conditions. CoAL’s immediate focus was to find a cash-generating asset, and management has spent the past quarter evaluating opportunities, Brown said. It was also talking to current and potential investors about funding an acquisition. In the September quarter, CoAL generated no revenue. Its only expenses were staff and administration, which accounted for about $3.9m. It held $11.9m cash at the end o...
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