cza hopes to resume vele project this year , page-2

This is the company, which had a "whiff" of good times that were about to come:
- Vele was about to get into production of coking coal, after a long gestation period

- Mooiplats was beginning to reach to the export quality thermal coal after mine re-design delays

- They had enough funds with no debt to worry about the next FY

And what did it do, announce that its going to delist from the ASX. For all those, like me who held on LT, hoping to one day get rewarded for the patience and belief in the company, were being now shown the door. They did not need the Aussie shareholders and their Aussie dollars anymore.

Well, the tide has changed
- Their primary asset, Vele, with all its coking coal, has been slapped with multiple notices by multiple South African ministries. NGO's, Environmentalists are up in arms against the Vele proposed mine. And this after the company has already spent $76mn (ZAR 525.3mn)

- Their net revenues are a measely $15mn, and net cash outflow ($58mn). With just $42mn cash left in hand, forget about being able to restart Vele (i.e. EVEN IF they get the approvals from the SA ministries) this company does not have enough funds at this burn rate to even last 1 quarter.
And the quarter ends on 31st December. They need to do another capital raising before December is over.

- Since cap raising is coming, so should come investor presentations from company, recanting by the company of its original plan to delist from ASX and new broker reports on merits of CZA.

Finally,
Retail investors have been neglected in cap raising's one too many times. Institutional Investors will expect and rightfully so, their pound of flesh from a company desperately seeking funds. And I, expect the price to head southwards, < $1.20.

Disclaimer: Hotcopper Disclosure asks if I own shares in the company, I do not anymore, so have checked on No position. But I want you to know that I have shorted the stock.