Coal of Africa still looking for cash-generating asset

28th Oct 2016 14:23

(ShareCast News) - South-Africa focused Coal of Africa updated the market on the quarter ended 30 September on Friday.The AIM-traded company said there were no lost-time injuries recorded during the quarter, continuing on the perfect record seen in the fourth quarter of the 2016 financial year.It said the Integrated Water Use Licence for the Makhado Project remained suspended following an appeal to the Department of Water and Sanitation submitted by the Vhembe Mineral Resources Forum.Discussions were continuing with the Minister of Water and Sanitation.The company said it had made significant progress in the identification of possible cash generating assets.Available cash at period end was $11.9m, with restricted cash of $0.3m."The current company focus is to obtain a cash generating asset for the group," said CEO David Brown."This will allow the company access to sufficient funds over time to cover company overheads, pre project development costs for the Makhado Project, and all regulatory charges to ensure the continuation of full compliance on all current assets."The increase in thermal and hard coking coal prices over the last quarter leaves the coal industry with a positive outlook and we are committed to the maximise the benefit of this market for our shareholders."