Bullbar,I would argue that the SA coal/mining scene is more...

Bullbar,

I would argue that the SA coal/mining scene is more politically stable than that in Australia, where we have a quasi-socialist-'green' govt bent on imposing a new MRRT on coal miners, and a carbon tax, which would further penalize Aussie coal miners & coal production. Their junior partners, the Greens have a stated policy of closing down coal fired power stations in Australia & also oppose coal mining.

Despite the hot-air & nonsense about mine nationalisation in SA - which even the mining unions reject, the SA mines minister has scoffed at the idea of imposing a MRRT. As a developing economy, (and one vying to join the BRIC nations) the idea of imposing a carbon tax is also ruled out. SA are desperate to lift their economic growth rates, and reduce their high unemployment rates - you don't do this by impeding the most successful and profitable sectors of your economy. Also, there is massive domestic & international funding being poured into SA to boost their power infrastructure, via enormous new coal fired power stations.

I have already posted on the status of Botswana, known as "the Switzerland of Africa". The most pro-mining jurisdiction in Africa, which ranks higher than most so-called First World nations in ease of gaining mining permits.

Conti Coal is fully BEE compliant with powerful Zulu Royal family connections. This gives them a significant competitive advantage over the major coal miners - being given priority access to rail & port allocations, plus acquisitions & transfers of mining rights are easier to obtain.

Rail and Port infrastructure is world class, and well established.

Management has a proven track record of large project development, and are incredibly well connected in the SA mining & energy sectors, and have world class credentials.

Coal resources well defined.

Exploration targets are massive (6.6bt), but not even factored into the current SP.

Cash is now flowing via 2 producing mines - export coal being shipped at +$US100 rates.

20 year off-take agreement with EDF - largest MC energy trader in the world. Plus Conti have ready access to further (low cost) debt funding with EDF.

Next project, Penumbra (90/10 export/domestic coal) fully funded.

DeWittekrans Complex - low capex costs for 30+ year mine life - huge "synergistic" savings by developing 4 mines in one complex, plus access to existing infrastructure via partnerships with large neighboring miners like Total.

I could go on.

This company has moved out of the realm of "speculative" or "junior" ranks and emerged into the "mid-tier" category. People look at the sub 10c share price and huge share issue & turn their noses up - well that's back luck to them! Focus on the modest MC, that's where the $tory lies.

There is considerable prejudice against SA mining companies amongst ASX listed stocks, which is also holding Conti's SP down. But this prejudice is unwarranted, mis-placed and regrettable IMO. With this situation, there are those who have done their due diligence and research and have seen the value opportunity staring them in the face.

This is not investment advice! Just my observations, and a standard long winded Sunday afternoon Mihal polemic.

Disclaimer: Mihal: shamelessly promoting CCC since July 2010