Satisfaction of the conditions precedent to enable the ABSA funding to be drawn down for the Penumbra mine development (one significant condition was passing 75% ownership of Mashala which has now been achieved, and CCC is working steadily to satisfy the other remaining conditions);
Given there is still no drawdown it makes you wonder what the remaining conditions were/are.
Page 10 also outlines that ...
The acquisition of the Continental Coal business, Mashala Resources and the working capital required to bring the projects into production, has involved the raising of around $A220m of new share capital since June 2008 (when the company’s assets were only A$9m), plus debt and convertible note funding of around US$100m and A$16m respectively.
This MM report was pre Bergen & pre resolution 5 and obviously pre Dewitts. Pity they didn’t express it as well as the number of shares and the dilution it has caused. Still it’s not just financing where they’ve been misleading – what about the 7mtpa in 2013?
Page 10 also states …
It is likely that the fourth and subsequent mines will also require significant project finance to develop: there is the possibility of further share issues if the equity component of the financing cannot be satisfied by the cash generation from the producing mines at that time.
Perhaps that’s what’s already happened at Penumbra?
There’s merit in what Aggie & Huge have just expressed.
CCC Price at posting:
8.7¢ Sentiment: None Disclosure: Held
