re: Ann: Interim Financial Report and Appendi... Although I...

re: Ann: Interim Financial Report and Appendi... Although I continue to believe that the financial situation has improved since the year end, my confidence in the management has been shaken this morning, I’ve sold my shares and rightly or wrongly this is why if anyone is interested :

On 19 February they stated ‘Settlement of the sale of the Company's shareholding in VanMag remains on track for settlement later this month.’

Today they state ‘settlement remained on track for the end of the
first quarter 2013.’ and ‘the balance due in the March 2013 quarter’ with no explanation for what appears to me to be a further delay from February to March or any commentary on the potential impact on the settlement of Mashala which we are told is due to be paid by today.

Separately, and more concerning to me is the position regarding the possible sale of the SA operating assets. On 19 February they stated ‘A further update on ……… the status of the Company's discussions with parties that have submitted offers for the Company's interest in its South African business and for the acquisition and/or joint venture of specific operating and development projects, will be made in the current quarter.’

Today they state ‘During the period the Group confirmed it had received several approaches from Indian based coal and power utility companies, as well as major global commodity trading and private equity groups, looking to acquire all or part of the Group's South African thermal coal mining business and/or joint venture on specific operating and development projects, including the De Wittekrans Coal Project. The Group continued discussions and negotiations over the period and believes that the interest received has demonstrated the attractive nature of the Group's operations and development and exploration assets in Southern Africa.’

In regard to the non-core assets they state ‘These discussions are continuing.’

Why is the there no mention of ongoing discussions regarding the operating assets and why instead do they use the word ‘continued’ (past tense) and conclude that the discussions demonstrated (past tense) the attractive nature of the assets. As far as I can see we have gone from (10/09/2012) ‘The Company advises that indicative non-binding bids several times the Company's current market capitalisation have been received for an outright acquisition of the Company's South African thermal coal mining business.’ to the above position. I fear that these bid discussions have been terminated and they are using weasel words until they update the market on the outcome of the remaining discussions later.

I will continue to watch progress here and may buy back in but at present I am just not happy with what is being said/not said and am very unclear on what exactly the Company is negotiating on.