directors report 2011

from last year:

First full 12 months of thermal coal production from the Vlakvarkfontein Coal Mine
? Acquisition of an initial 64% interest in unlisted South African thermal coal mining and export coal producing
company Mashala Resources (Pty) Limited
? First export thermal coal shipments from the Richards Bay Coal Terminal commenced under a thermal coal off-take
agreement with EDF Trading
? Successive quarterly increases and record quarterly run-of-mine thermal coal production levels achieved at the
Ferreira and Vlakvarkfontein Coal Mines
? Successive quarterly increases and record quarterly sales of export thermal coal from the Ferreira Coal Mine and
Delta Processing Operations
? Initial JORC compliant coal reserves of 63.5Mt at the Ferreira and Vlakvarkfontein Coal Mines and the Penumbra
and De Wittekrans Coal Projects
? Total JORC compliant measured coal resources at the Company’s next two proposed mine developments, the
Penumbra and De Wittekrans Coal Projects increased by 63% and 182% respectively
? Portfolio of producing, pre-development and exploration projects increased substantially over the year with the
Company now holding interests in two producing coal mines and eleven pre-production and exploration projects, up
from interests in five projects in the 2009/10 financial year
? Exploration and drilling program finalised for the Company’s interests in two early stage and strategically located
Botswana Coal Projects
? Joint venture agreement finalised with Korea Resources Corporation to fast track a bankable feasibility study on the
Vlakplaats Coal Project
? Executive management team and Board strengthened with the appointment of several senior mining executives in
South Africa as well the appointment of a highly experienced London based non-executive director
? Agreement reached with a highly respected and well established Broad Based Black Economic Empowerment
Group to acquire the existing 26% BEE interest in the Company’s South African subsidiary, and repay approx.
US$20m of intercompany loans
? Thermal coal off-take agreement and associated US$20m debt funding agreement executed with EDF Trading, a
leader in the international wholesale energy markets. US$15m was drawn during the financial year.
? Repayment and conversion of A$19.8m of secured and unsecured debt completed during the year
? Shareholders indicated strong support for the Company’s business strategy in South Africa through subscription of a
heavily oversubscribed Share Purchase Plan that raised A$16m.
? A$16m of convertible debt raised with institutions in Hong Kong and London and A$52m raised via private
placements to select sophisticated, institutional and professional investors in Australia, Europe and Asia
? Credit approval for US$65 million in funding from ABSA Capital for the development of the Penumbra Coal Project
? Listing completed in the United States on the OTCQX International under the symbol CGFAY
? Listing completed on London Stock Exchange’s AIM Market under the symbol COOL


I am looking forward to details for 2012.