tough environment now

CZA blowing up a bit. From today's quarterly:

"Pressure on index linked coal prices continued during the quarter declining from US$103/tonne in March 2012 to US$87/tonne at the end of June 2012. As a consequence the Company’s thermal coal mines reported losses during the quarter under review."


"Current pressure on thermal coal markets affected revenues to the extent that the Company’s thermal coal mines are currently reporting losses, a trend that is expected to persist into the first quarter of FY2013. The anticipated negative cash flow from our thermal mines combined with the litigation payment in the June quarter and increases in other capital expenditure means that the Company is forecasting a funding shortfall of approximately US$15.7 million for the September 2013 quarter. In addition to the Investec Financing Package, the Company is in continuing discussions with various parties with regards to providing further funding for the Group."