CoAL hunts cash-yielding asset
The company plans to buy another colliery after acquiring Pan African Resources’ Uitkomst in bid to raise money to finalise Makhado project
Coal of Africa (CoAL) intends to cut overheads and make another acquisition in the short term of a similar size and quality to Uitkomst colliery to generate cash over the next two to three years, says CEO David Brown. He was speaking on Wednesday after the coal junior announced the R275m purchase of the Uitkomst colliery from Pan African Resources and the raising of a R240m loan from the Industrial Development Corporation to advance its Makhado coal project. The shares rose 2c on the JSE, to 52c after the announcement, but they are still a fraction of the 780c of five years ago. Pan African’s shares added 5c to 265c. It said its total profit after the disposal of Uitkomst would be R157m, including dividends received of R30m, on an original investment of R148m a year ago. "The transaction reaffirms Pan African’s focus on our gold-mining business and again demonstrates our ability to conclude value-accretive transactions to the benefit of our shareholders," Pan African CEO Cobus Loots...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.