Continental Coal (ASX: CCC, AIM: COOL) has appointed Investec Bank as its joint broker for its London Stock Exchange’s AIM Market listing.
Investec Bank is a large South African bank and asset manager with core activities in the United Kingdom, South Africa and Australia.
Continental began trading on the AIM Market in September last year.
The AIM listing provides the company with opportunities to further diversify its shareholder base, particularly with funds and institutions in Europe, increase its international profile and opens up a range of opportunities for Continental to establish additional strategic partnerships.
Earlier this month, the company’s South African subsidiary secured a US$65 million coal hedged debt agreement with ABSA Capital and a subsidiary of Barclays Bank to fund the Penumbra Coal Mine development.
Continental has hedged about 664,550 tonnes of coal over the life of the term loan facility at an average price of ZAR1,057 (A$129.32) per tonne.
Importantly, the coal hedging represents only 12% of the JORC Reserves at the Penumbra Coal Mine and provides upside to any rise in thermal coal prices, as well as providing operating flexibility.
Laying the Foundations for Strong Growth
Continental Coal has laid the foundations to double thermal coal export growth in 2012 by bringing a third mine into production, which is currently in development.
Combined, the company’s projects host 64 million tonnes in coal Reserves and in excess of 600 million tonnes of Resources.
Continental continues to beat its own export records, with its subsidiary Mashala Resources shipping 30% more high quality export thermal coal through the Richards Bay Coal Terminal during the December quarter.
The company’s third mine, the Penumbra Coal Mine – which is on schedule and on budget, is forecast to produce annual run of mine production of 750,000 tonnes.
Coal produced from Penumbra will be beneficiated through the existing Delta Processing Operations which comprise a 1.8 million tonne per annum coal processing plant and the 1.2 million tonne per annum Anthra Rail Siding.
Continental is forecasting production of 500,000 tonnes per annum of a primary export thermal coal product.
The company has a current run of mine production of 2 million tonnes per annum of thermal coal with sales to the international export and domestic markets.
Continental’s goal is to achieve 7 million tonnes per annum of run of mine coal production in 2013.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25448/continental-coal-appoints-major-south-african-bank-as-joint-broker-for-aim-listing-25448.html