for a company that hasnt got an ounce of promotion in it, this...

for a company that hasnt got an ounce of promotion in it, this was a bolt out of the blue.

Not surprisingly, it was released tonight at 7:30 pm which is also State of Origin decider night and so the ann will mostly go unread lol.

I dont know much about the coal details, but the Nimag sales results for the June quarter are quite impressive! Hopefully it shows a 'real' profit this time (ie after admin costs). Probably explains the large accumulation by a handful of buyers last couple of days.

Think its worth reminding that at current prices its market cap is only around 6.5 million so any profit would be significant. However it is currently cash negative so a risky punt. Worth remembering also that it has an interest in a listed company in UK which has a value of around 1-2 million Australian at its current SP.

Extract:

Sales for the June quarter are expected to reach 350 tonnes compared to sales of 221 tonnes in the March quarter. Whilst high nickel prices continue to constrain sales, the substantial decline in the Rand has had a positive impact on profitability. A marketing campaign in China has proved to be successful and expected to have a positive impact on earnings for the second half of the year.

Cdchi1

MARKET UPDATE
Holfontein Coal Project
As previously advised, the Company engaged the services of
Mr Dawie Le Roux Van Wyk to prepare a geological coal resource statement in
respect of the Holfontein Coal Project in the Highveld Coalfield near Lesley in the
Mpumalanga Province.
An insitu indicated coal resource of 18,482,274 tonnes has been determined for 5
Seam Holfontein. It is predicted to yield approximately 8 million tonnes of saleable
coal.
The 5 Seam, which is of high grade metallurgical quality (28 dry ash free volatile
VM), occurs approximately 80 metres below surface and is proposed to be accessed
by a box cut. The railway to Richards Bay passes through the property and a railway
siding is located at Levan, which is adjacent to the Project.
A Scoping Study is being prepared for the Company that provides operating cost
estimates for the project based on the assumption that both mining and washing are
provided by a suitable qualified mining contractor. The costs will be based on the
mining contractor providing all mining and washing equipment. The study
incorporates a modest core drilling program to validate previous work and is expected
to be completed by the end of September.
Following granting of the prospecting rights which is expected to be received by the
end of October 2005 and subject to the outcome of the scoping study, the Company and its joint venture partner, Motjoli Resources, will initiate a second round drilling
program that will form the basis of a Bankable Feasibility Study, which is anticipated
to be completed by June 2006.
D le R van Wyk has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the ‘Australasian Code of Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. D le R van Wyk consents to the
inclusion in the report of the matters based on his information in the form and context in
which it appears.
Nimag Ltd
As foreshadowed in the last Quarterly Report, trading conditions have improved
dramatically since the end of the March quarter. Sales for the June quarter are
expected to reach 350 tonnes compared to sales of 221 tonnes in the March quarter.
Whilst high nickel prices continue to constrain sales, the substantial decline in the
Rand has had a positive impact on profitability.
A marketing campaign in China has proved to be successful and expected to have a
positive impact on earnings for the second half of the year.
AIM Listing
Preparations for the listing are proceeding well and applicatio n for a fast track
admission should be lodged within a month. Trading usually commences a month
after application for admission.
Yours sincerely,
Simon Farrell
Managing Director