reply for ccc mangement to my email

I sent an email today at 4 00pm to CCC and was sent a reply back within an hour. Please read and l hope that you do get some answers to many questions you all have.
I found the reply to be quite good in substance.
Love to hear your comments,
Pete




Peter


Thanks for your email, if it's ok I'll respond given that Don is already in meetings in Europe and I have another hour here in London until my meetings start.


Yes the share price performance is disappointing to say the least, frustrating given what the company is achieving operationally on the ground in South Africa. Yes progress has in some places not been line with the timeframes that we set ourselves, however we are now doing pretty much everything we said we would be - production at Ferreira and Vlak, construction at Penumbra, exploration in Botswana - in addition we have progressed a number of other positive developments - a broad based BEE group, improved funding terms from ABSA/Barclays etc.


Our performance on the ground in South Africa is pleasing, yet is against a backdrop of increased concerns over sovereign risk issues given high profile media headlines of nationalization amongst other things. This has clearly affected any equity that has an exposure to South Africa. Continental is not alone on this, Coal of Africa's performance over the past 9 months has similarly not been good, and even today they were down almost 10%.


Against all of is we have seen a lot of trading in the shares. This trading has been looked into by the company and it's advisers on several occasions. The trading is through a number of nominee accounts. The previous capital structure of Continental with over 3 billion shares on issue certainly assisted this trading that continued on a daily basis and could on any one day account for over 50% of the days volume. The trading activity was reviewed and was not deemed to be illegal in anyway. It was just trading by certain groups that were on the sheer volume traded able to make appropriate returns even on just 0.1c movements in the share price.


Whilst we can control and manage our operational performance, we have limited control on our share price, although continued strong operational performance should at some stage I believe be reflected in the share price. The AIM listing and share consolidation are means by which we can look to tighten and improve the share register and capital structure of the company and I am very optimistic on how this will I pact on Continental in the coming six months.


Over the past week we have met a number of brokers, analysts and institutions all of which recognize what the company has achieved over the past year and are somewhat surprised at the valuation that the company has. I am hopeful that this will result in a lot of interest on AIM next week and going forward.


Many thanks for your email


If you have any further questions or need any clarification on any matters in the future then please feel free to email me direct or call me at the office.


With kind regards




Jason



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