CCD - Caledon Resources - Aussie Stock Forums

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  1. #1

    Default CCD - Caledon Resources

    Thought I'd post this up given the interest in the coal sector at the moment... CCD looks set to list around the 4th June after it's IPO through ABN AMRO was massively oversubscribed and closed early... it will be dual listed on the AIM (london exchange) and ASX, but the majority of shares will be on the AIM...

    the IPO price was $1.10AUD, which is a nice paper profit for those lucky enough to get stock in through ABN AMRO... it is currently trading at close to $1.90AUD on the london exchange, so you would assume on opening day the price will be around that mark or higher...

    it really is the first decent up-and-coming Australian coal producer to list in quite some time... very exciting prospects and new technology being implemented....

    in compliance with JORC they are currently sitting on coal in QLD of:
    Cook - 176Mt
    Minyango - 240Mt

    Not bad for a company with a market CAP of only GBP$160million...

    Main risks will be whether the ramp up of the cook mine is successful and can achieve targets... also whether Minyango will make it into production eventually...

    I disclose holdings currently on the AIM

  2. #2

    Default Re: CCD - Caledon Mining

    Caledon is listed on the AIM Market operated by the London Stock Exchange (“AIM”). The Company is a coal producer and explorer with operations and development projects in Australia’s Bowen Basin, which is one of the world’s premier coal regions.

    Caledon is currently seeking an additional listing on the Australian Stock Exchange (“ASX”).

    The Company operates the Cook underground mine and related processing and infrastructure facilities. The operation is primarily focussed on the ramp-up of the installed Magatar Linear Mining System to produce predominantly coking coal. The Company has recently recommissioned the mine and is currently ramping up production with a target of 100,000 tonnes per
    month by mid 2008. This advanced Magatar system has attracted a lot of attention in the mining industry due to its anticipated improvement in productivity and efficiency for underground resources not suitable for longwall mining. Caledon is the agent for the intellectual property owner of the relevant mining methodology in Australia, New Zealand and Indonesia.

    Caledon is also progressing the evaluation of the nearby Minyango Deposit which contains a significant underground coking and thermal coal resource.
    The Company is currently completing its second drilling program designed to advance 40–60Mt of indicated and inferred resource into the measured category in preparation for pre and final feasibility studies. Caledon believes
    this deposit has the potential to support a 2–3Mt per annum mine with ramp-up intended to coincide with the commissioning of
    the new Wiggins Island coal terminal expected in 2012.

    Caledon is poised for substantial sustainable growth at a time of strong demand for coking and thermal coal with current press reports of record prices for the current year. The Board of Caledon are delighted to have the experience of Mark Trevan (Managing Director) and Peter Seear (Chief Operating Officer) who together bring over 50 years mining experience to
    Caledon’s operations.

    The Company is seeking to raise approximately $15 million under this Prospectus, offering up to 13.79 million Shares which, under the Public Offer, will be issued at a price of $1.10 per Share. The Public Offer has been fully underwritten by ABN AMRO Morgans Corporate Limited. The funds will primarily be used to continue the upgrade of the Cook Mine. This offer follows the
    placement of 6.36 million Shares to Australian institutional investors, at the same issue price, to secure the funds to make the
    final payment for the Minyango Deposit.

  3. #3

    Default Re: CCD - Caledon Mining

    currently sitting at 1.08GBP in the UK... should open on the ASX for around $2.30 by way of equality... but with the added hype could go higher...

    not bad profit for those who got stock in the IPO for 1.10

  4. #4

    Join Date
    Feb 2007
    Tropical Central Queensland

    Default Re: CCD - Caledon Mining

    Quote Originally Posted by mrgroundwork View Post
    currently sitting at 1.08GBP in the UK... should open on the ASX for around $2.30 by way of equality... but with the added hype could go higher...

    not bad profit for those who got stock in the IPO for 1.10
    G'day Mr Groundwork, you have taken the words right out of my mouth.
    I was fortunate enough to get hold of some of CDN at the low 30p mark , so I am very happy with what has happened to them since then.

    I have been on site at the Cook Mine at Blackwater & from all reports the Magatar system is working well. The ABM25 has had some challenges with faults etc but all in all it seems to be working fairly well.

    The Cook Mine sits on some pretty good quality Coking Coal , although from what I'm told the Leichardt Seam which they don't mine ( due to consistent faulting ) is the best in the region.

    Anyway they have rail & port access through Xstrata who sold them the lease, so they have cash flow already.
    Add to that some spot pricing of Coling Coal circa $300 / T & you could appreciate their potential.

    This is not counting the throughput that they should get from their Minyango Lease which is right next door.

    Their Wash Plant is under-utilised and with some upgrades with their extra cash after listing, they will start to pump some more cash through the company.

    Due to the tightness of stock . it will be exciting to see them run on Wednesday of this week coming.

    Good luck to current CDN holders & good luck to all jumping in on Wednesday


  5. #5

    Default Re: CCD - Caledon Mining

    Hello, I'm from the UK and we have a very friendly bulletin board over here on www.advfn.com. Most of us have been holders of Caledon since their days as a gold explorer in China and bought at around 15 pence, so we are well pleased with the recent share price rise. We never expected the company to go into coal and some were bitterly disappointed when the announcement was made. It has been a long hard wait for us but we are finally reaping rewards. Polo Resources has been buying the stock and I believe that most of the recent price rise has been down to this but there may have been other large buyers, I don't know. It feels to me as if it could be building up to a takeover bid. Anyway, we are all waiting with eager anticipation to see the reaction from Aussie investors when the stock lists on ASX next week. If you are an investor I wish you the very best of luck.

  6. #6

    Default Re: CCD - Caledon Mining

    Hi everyone. I post on advfn too, am from the UK, and have held (and added!) CDN.L since 36p new money (i.e. post-consolidation). Exciting times.

  7. #7

    Default Re: CCD - Caledon Mining

    Quote Originally Posted by bazollie View Post
    I have been on site at the Cook Mine at Blackwater & from all reports the Magatar system is working well. The ABM25 has had some challenges with faults etc but all in all it seems to be working fairly well.
    Interesting times indeed bazollie. When did you visit the mine? I recently proposed that the share price increase we saw last week in London was simply a long-overdue upward correction. However with the news just out regarding Directors' options, I am beginning to suspect that it is, in fact, decent production that is propelling the price to all-time highs. A view from closer to the coal-face, if you'll forgive the expression, would be very much appreciated.

    Next couple of weeks are going to be insane in my opinion.

    All the best, and well done to all Caledon longs for your patience has been rewarded.

    I own shares in Caledon.

  8. #8

    Default Bazollie Caledon Resources mine visit

    Hi there from the UK
    Please would you give us some more info on your visit to the site?
    When were you there? who did you meet? what did u c? etc etc
    We are expecting 100k tons/month.....do you believe or know if they have reached this level? do you know more info on the coke/thermal split?
    How about some info on the railing out?
    also as Caledon's mine was not flooded how are the other local mines doing?
    Thanks for your great help

  9. #9

    Thumbs up Re: CCD - Caledon Mining

    A great comment posted by a guy called bodg on the UK boards (ADVFN and iii). bodg is reknowned in Caledon private investor-land as being a tireless researcher - his daily digests on the state of the coking coal market worldwide fill many of us with confidence in our investment.

    "The share options granted on 26 May 2008 are exercisable between 26 May 2009 and 25 May 2018, subject to meeting performance conditions in relation to an increase in production levels of saleable coal; the reduction of unit
    production costs; and an increase in shareholder value."


    We must assume that the directors granting themselves more share options was motivated by some targets being achieved. At the same time the share price accelerated way beyond the level which we know Polos buying had propelled us too. There are only a few things I can think of which could cause this to happen.

    A). The Magatar is not only producing the 100,000 a month but exceeding that. I always believed their assessment of that machines potential has been deliberately underplayed. If it is performing well the possibility of agent revenues from our sales area could be considerable. We also have the other machine working so the coal is probably flying out of the ground....so cash flow is strong.

    B). They have had probably several suitors snooping around and know a bid or a major stake builder is imminent. MAYBE the granting of options was to compensate the directors if Caledon are taken over before they feel it has reached the level it could in a couple of years time? For the price to rise so strongly someone has to be sure they will get a good return... and millions have been spent buying this stock in the last few days. I wonder too why the haste? Is it something to do with the australian listing or, as I suspect, have we 2 or more interested parties trying to obtain as much stock as possible before making a public announcement? That is a more likely scenario taking into account the relentless raising of the bid the last few days.

    Whatever is going on we can be assured that whoever is spending the money on this stock KNOWS it is still cheap and that things at Cook are at last going to plan. I worked out some time ago that if production was met on low fundementals this was worth a minimum of £1.40. That did not take into account the Coking coal shortage panic or Minyangos potential. You'd be suprised reading the news how much money is being spent on coal sites in very ambiguous places with little snippets like "the area is BELIEVED to contain coal!" Minyango has large reserves which will probably be substantially increased and is in a politicall stable land. We still have not seen the Minyango effect included in the price imho.

    I hope with the listing next week the management will make some kind of statement assessing the companys current situation and maybe throwing some light on resons for the price rises....alternatively if there is a bid coming they will have to go public soon as thresholds are crossed and time runs out.

    I had had an optimistic target of £1.50 on this stock for some years and have been very patient....but events of the last few days and my perception of the current coking coal market has made me believe that this can go a fair bit higher than that. Do not underestimate the panic mentality of coking coal users and the speculators wanting a piece of the coal action. With indian and chinese demand likely to last 20 years or more the coking coal story has a long and bright future ahead....and hopefully so do we.... but my feeling is we may be selling out soon as one of the very few affordable, producing, top quality coke mines available.

  10. #10

    Default Re: CCD - Caledon Mining



    my mistake, for some reason mining was just in my head...

  11. #11

    Default Re: CCD - Caledon Mining


    has been sitting around the 1.30GBP mark tonight... so pretty safe to expect tomorrow will be in the 2.50-3.00AUD mark by the end of tomorrow...

    to me this is a no brainer... despite the temptation i dont think i will be selling my shares this week...

    • it's the first decent junior QLD coal producer to come on the market in a while
    • they have patented technology that appears to be a winner at extracting coal
    • cash is already flowing
    • they already have one interested party in Polo resources PRLLN running the ruler over them (note Polo just had a placement to raise cash for takeover opportunities)
    • they have strong ties to Xstrata, having signed infrastructure agreements with them already, perhaps Xstrata may take a look at Caledon too
    • coal sector is ridicuously hot at the moment...
    • they have another JORC'd up resource that might see production soon
    • from a TA perspective it is in a massive uptrend on rising volume

    good luck tomorrow guys if you are holding in the UK or buying on the open on ASX

  12. #12

    Join Date
    Feb 2007
    Tropical Central Queensland

    Default Re: CCD - Caledon Resources

    G'day all , welcome to the new visitors from the UK! Tomorrow is shaping up as an interesting day for Caledon (CCD on the ASX after 10.30am aest)

    It would appear that the possibility of $2.70 plus at listing is not out of the question. ( based on the 13% rise in SP over in the U.K.

    Interesting that Polo resources are reportedly set as a 12% holder now.

    Look forward to tomorrow after close of trade to see where we end up!

    All the best from sunny central queensland,


  13. #13

    Default Re: CCD - Caledon Resources

    Well it's raining here guys, but not on my screen. On my screen it's as sunny as it's ever been for years...

    GBP1.39 at the moment.

  14. #14

    Thumbs up Re: CCD - Caledon Resources

    Just my worth.

    So massive day in London today in the lead up to tomorrow's/today's ASX listing.

    Finished at 140p, up 18.25p on the day (17,577,520 trades going through). Everyone over here is extremely keen to see the Aussie reaction first thing and I think there will be quite alot of holders watching the open at about 11pm GMT. All the thoughts are going with an opening around AUD $3.00/share hopefully progressing to $3.30-$3.50 by COB.

    Rumours are flying about regarding Megatar (breaking Australian Mining Records - Unconfirmed) and various potential suitors. Also believe there have been alot of Australian Institutions adding through AIM which will then be convert to the CDIs over the coming weeks which may increase the liquidity of the ASX stock a bit.

    For those who managed to get in to the IPO then well done, you should have some amazing listing profit, however all thoughts are there is plenty more yet to come (with confirmation of reaching 100ktonne/mth) and with the way the industry is at the moment. It should be worth many times more once Minyango comes to frution if it doesn't get taken out before then, which unfortunately is beginning to look very unlikely.

    Anyway, have a good day morning guys and ah yeah.....up the Maroons.

    DYOR and all that.

  15. #15

    Default Re: CCD - Caledon Resources

    Bobsa, just for the record, it's 0130 over here when CCD starts trading (which is 1030 over there - half an hour after the ASX opens at 1000) (or do I mean over here coz we're posting on an Aussie board?) (now I'm confused)

  16. #16

    Default Re: CCD - Caledon Resources

    looks like 3.00 close...

    i suspect there will be more big volumes trade on the UK tonight... fun times for the holders

  17. #17

    Join Date
    Feb 2007
    Tropical Central Queensland

    Default Re: CCD - Caledon Resources

    Not as good as start to the trading day for CDN.L. Down nearly 8%. Perhaps it could be profit takers?
    The CCD on the asx today held firm with large buyers in at $2.90 & $3.00 most of day.
    If these big buyers are in at these prices , one would expect that there may be scope for better than $3.00 prices in the near future?

    Hopefully we will hear from management soon in the form of an announcement to welcome new shareholders & also give us an official update on where they're at with mining etc.

    Anyway , still holding & will be following this closely for the near future,



  18. #18

    Smile Re: CCD - Caledon Resources

    Weakness in oil and energy stocks in general today has taken the sp down over 8% as I write. Other coal stocks are down also, but not as much. Would be logical for some PI's to be panicked into taking profits or hitting stop losses.
    I'm convinced this is temporary as oil will recover shortly IMHO.

  19. #19

    Default Re: CCD - Caledon Resources

    Finished down around 5%. Not bad considering it has risen 100% in less than 2 weeks, against the backdrop of a slight bit of profit taking and a mini correction in the sector plus a bad day in London in general.

  20. #20

    Default Perpetual buys 900k Caledon Resources shares

    Perpetual buys 900k Caledon Resources shares

    Perpetual bought 900,000 Caledon Resources shares on June 4, becoming a substantial shareholder with 900,000 shares (6.55%).


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