we are off at last!!, page-2

Howareya,

I concur with your comments, however I don't think CZA need to do presentations to highlight their "bag of goodies" as you suggested. Those who need to know already have an eye well and truelly on CZA and already have a large stake or are attempting to increase their position.

I would suggest that the current price is more to do with those players attempting to hold the price in order to assist with accumulation, rather than market sentiment driving the price. Perhaps the endless use of bot trading here and in the UK may add some weight to that comment.

With this calander year's production estimated at 1 million tonnes of coking coal and 3+ million tonnes of thermal coal, you would think that this gives the company a very good revenue base with coal prices on the rise.

In my opinion, the ace up the sleeve will be the Makhado project, which hasn't had much of a mention in the press lately, apart from the recent bulk sample extraction approval for Mittal Steel. This project will be big, very big imo. One third is owned by CZA, another third by RIO and the remaining third jointly by CZA and RIO. Currently CZA have a resource of 1.3 Billion tones of mainly coking coal and about 2 years ago RIO announce that they had in excess of 1 Billion tonnes of premium coking coal from their exploration in the area.

The question will be what happens with Mahkado in terms of development. Here's a few facts about what is going on in Limpopo where the Mahkado land is and I'll leave it to your imagination as to what will or could possibly transpire:

1, CZA are targeting a possible 3 Billion tonne resource at Mahkado (currently 1.3 Billion t)
2. Rio resource currently in excess of 1 Billion t.
3. Agreement between both parties to JV the remaining third of Mahkado,
4. Exxado (major SA coal producer) approached CZA last year in regards to a buy in on the CZA Mahkado land.
5. World Bank appoves a US$3.75 Billion loan to Eskom for the development of a very major power plant in Limpopo last week.
6. Exxaro given the contract to supply 14.8 million tonnes of coal per year for the next 40 years for the new power plant.


Watch this space, IMO

Disclaimer: Long term holder of CZA.