Beacon Hill Resources is very popular at the moment on other BBs yet here there seems to be nothing - so I thought I'd put together the stuff I've gather from the Internets and see if anyone here is investing in BHR - I'm not but I might at some time in the future when the fuss has died down

Beacon Hill Resources

I am thinking of buying a few...Shares Magazine recommended it at around 13p so I wonder if that ship has sailed already (and arrived at destination, ready to return!)

Am in since yday at 16.875. Global Coke deal swung it for me as that deal on its own values BHR at 26 p/share. 19.25 now after just one day ...sofar so good

Good luck - people certainly are very bullish about BHR and are expecting some announcement today or Monday - the trouble with shares like this that have a sharp rise IMHO is that it attacts the shorters and manipulators so becomes very volatile - you guys may liketo take a look at the LSE BB - LSE a lo tof people there seem to be following BHR

Guess that RNS from this week can only be construed as good news as otherwise it would be deliberately misleading the market with all te relevant consequences

I guess so - but I see that today it is down 7%

Well there we go.... got stopped out with a small loss- in fairness I thought it was worth a gamble, but delays in announcements re Global Coke deal makes me very nervous. (words like shortly and in the near future worry the sh** out of me as they remind me too much of Stanelco statements in the past...-good luck to you alll though)

Void , Can you put a chart in the header

There you go - not sure if they will stay at the top as I just copied and pasted them - is there any other way of displaying charts ?

Thank's Void that should be ok

IT was tipped in The TImes are their Tiddle to Watch today - and there was also this RNS


Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining

11 November 2010

Beacon Hill Resources Plc ('Beacon Hill' or 'the Group')

Update on Operations at Minas Moatize Coal Mine, Mozambique



Beacon Hill Resources Plc (AIM: BHR), the AIM listed resource company, is pleased to announce an update on progress at the Minas Moatize coal mine in the Tete Province of Mozambique.



Overview



Exploration programme progressing well - drilling has been completed and testing of coal has commenced. Initial results from the exploration programme indicate an increase in the size of the overall resource and higher yields of coal than originally anticipated in addition to lower stripping ratios than originally expected



Production has increased to 8,000 tonnes per month, a 220% increase in production from levels seen at the time of acquisition



Stripping of initial open pit complete with production to commence in conjunction with the commissioning of temporary wash plant by the end of 2010



Highly experienced management team assembled to oversee mine development -led by Peter Wilson, Chief Operating Officer and Max Botta, who recently joined as General Manager



Transport agreements in negotiation - written confirmation of capacity from both the operators of the Sena Rail line and Nacala rail line and first export shipment planned



Discussions advancing with contractors to operate coal handling and preparation plant ('CHPP') and mine on a BOOT (build, operate, own and transfer) basis



Beacon Hill Executive Chairman Justin Lewis said, "We continue to make excellent progress at the Minas Moatize mine. The initial results from our exploration programme are particularly encouraging, demonstrating the potential for BHR Mining to significantly increase the current 33 million tonnes resource and increase yields, in particular of coking coal and export thermal coal.



"In conjunction with the exploration programme, the Group remain focussed on establishing a large open pit mine capable of producing 4Mtpa. In line with this, we have significantly increased current production, and this trend is set to continue with the extension of the current trial open pit, generating significant revenues for the Group ahead of the commencement of the main open cut mine. We are also making solid progress with negotiations regarding logistics, utilising our unique position as the only current coal producer in the region in order to secure transport corridors for our export quality coal product."



Exploration Programme



BHR Mining Limited, the Group's majority controlled operating subsidiary ('BHR Mining') commenced a drilling programme in May 2010 after acquiring the Minas Moatize coal mine in the Tete region of Mozambique. The objective of this drilling programme was to expand and further define the current 33 million tonne resource, in addition to enabling mine design and the finalisation of the CHPP design.



Over 35 holes have been drilled across the entire licence area which has allowed the Group to define both additional seams and also a larger area of coal, leading to a larger volume of coal to be defined. The delineation of this increased volume of coal will potentially increase the project's reserves and increase the mine life.



Following the completion of the drilling programme, the Group has initiated a testing programme of the core samples at ALS Limited in South Africa. Based on a preliminary review by the Group's consultants, initial results from these tests demonstrate that potential likely yields of coal are higher than previously anticipated and are summarised below:



Fraction
Current Yield
Estimated

Revised Yield

(Note 1)
Annual tonnage

(Note 2)

Coking Coal
15.0%
18.0%
760,000

Export Thermal
22.5%
25.0%
1,000,000

Domestic Thermal
12.5%
16.0%
680,000

Reject
50.0%
41.0%
1,560,000


Notes:

1 As a percentage of Run of Mine (ROM)

2 Assuming annual ROM of 4mtpa



Current Production and development



Production is currently from the underground mine, which since acquisition has been substantially refurbished, and is currently producing 8,000 tonnes per month, over three times the level when acquired. In parallel with this, stripping of the initial open pit has been taking place and is now complete. This will allow the production of a further 10,000 tonnes per month over the next 12 months, commencing towards the end of 2010. In addition, following a further exploration campaign, the Group has recently decided to expand this initial pit to include a further 80,000 tonnes, further increasing production over the next 12 months prior to commencement of the main open cut mine.



In August 2010 the Group ordered a temporary washplant with a capacity of 80 tonnes per hour to be used over the next 14 months. This has now been built in South Africa, is being transported to site and is anticipated to be commissioned towards the end of November 2010. Once in production, the mine will be able to produce small quantities of both coking and thermal coal for export, as well as domestic coal for sale at the mine gate.



Minas Moatize continues to work towards the commencement of production from the main open pit mine from January 2012, ramping production up to ROM 4Mtpa by the early 2013. Prior to commencing production the Group needs to build a permanent CHPP and complete the mine design. It is the intention of the Group to appoint contractors to build, own and operate the CHPP, whilst BHR Mining will pay a per tonne fee to have its coal washed. The Group has commenced discussions with several parties who have expressed interest in bidding for the contract, and the Group hopes to be able to award a final contract early in the New Year. In addition, the Group has commenced discussions with a number of firms which have expressed interest in bidding for the mining contract. It is anticipated they will also undertake the design of the mine and this contract will also be awarded in the New Year.



Logistics



Since the acquisition of Minas Moatize in May, the Group has sought to use what the Board sees as two key advantages; firstly the existing infrastructure having enough capacity to support the proposed production of the mine and secondly, being able to use the Group's first mover advantage, by being the only producing coal mine in the region, to secure long term capacity on transport corridors.



With assistance from both the government and other stakeholders, the Group has been exploring different options to get its coal to port. To this end it has received written confirmation of capacity with effect from the end of the November 2010 from the operator of the Sena Line, CCFB. In addition, the Group has also has a written offer of capacity on the Nacala rail line and port from its operator. These are important steps in securing the future transport corridors for the Group's product and something the Group is unique in being able to secure as the only producing asset in the region. The Group continues to explore its options at the Port of Biera and is in active discussions with the operator of the port. In addition, the Group has recently been invited by the Government of Mozambique to apply for capacity in the new proposed coal handling terminal to be built at the Port of Biera.



It remains the target of the Group to make an export shipment of coal in the next few months.



**ENDS**

today had me bewildered but very happy as bought bhr dirt cheap - this sp imo is an absolute bargain - sure to be 2 / 3 x this sp next year or much more imo

also worth a read http://www.bhrplc.com/news/reports/2010/Company%20Update%20May%202010.pdf

lol...

Again we have a company that is at the moment undergoing a very beneficial transformational pattern.

Cast iron fundamentals, calm and collective board of directors who quite rightly ignore the requests of pi's constantly contacting them with almost childlike requests of Are we there yet mum?, in favour of preparing to take stick from the pi's while carrying out concise steady due diligence and foundation building strategies in the background.

They release the first of many trusted and grounded announcements to the market to confirm that the infrastructure and partner brokering is now established creating the groundworks for a transformational period for BHR and its long holding and patient investors.

There is only one problem for BHR at the moment and that is it is being traded by the usual train spotters and not by investors (there is a very big difference). Once the retail shoppers have all left with their carrier bags with - I bought BHR and wore the t-shirt) written on them then the real money will take BHR to a new level and talk of mid 20's or 30's will be a long distant memory.

The demand by TATA this year leads the indicators and already mines in South American countries such as Colombia are setting the stage to fill one of the largest demand surges seen in the last 20 years.

Take 10 minutes and if you have the appropriate software, take stock of the sell amounts and the opportunistic buy amounts. The writing is on the wall and soon BHR will have the investors it deserves not the traders that it does not.

gibby - this BHR thread does not have many followers - have you checked out the lse.co.uk BB - they have a thriving BHR community with people who seem very well informed

Thank you Void for directing me to LSE what an easy, quick and free site. I may well give them all my "free" business rather than Yahoo finance. Like you say lots of BHR chat there - I was beginning to feel a little lonely here for some months now !

thanks void - and gl
bhr sure to come good imo

oakapples - you are not alone! hello mate

Beacon Hill finalizes coking coal off take deal with Global Coke
Sunday 14 Nov, 2010It is reported that Beacon Hill Resources has finalized a formal off take deal with Global Coke for all coking coal produced from the Minas Moatize mine in Mozambique along with a USD 5 million deposits.

Global Coke is also taking a 26% interest in BHR Mining which values the project at USD 210 million.

Beacon Hill said Global Coke would invest USD 20 million for an initial interest of 9.45% in BHR Mining and acquire a further 16.55% from Consolidated Minerals Pte. Beacon Hill says it is also in advanced discussions with its advisers and potential investors to fund its additional USD 10 million investment in BHR Mining.

It is intended that the revised subscriptions by GMM and Beacon Hill will take place on or before November 30.

Mr Justin Lewis Beacon Hill chairman said: "The development of Beacon Hill is continuing apace as we seek to establish a portfolio of resource assets with near term production potential in commodities associated with the steel industry.

He said that "We have finalized the off-take agreement for the coking coal produced at the Minas Moatize coal mine in Mozambique for the life of the mine."

(Sourced from StockMarketWire.com)

to me = plenty s
sp at the moment incredible good value - massive upside little downside - role on 30/11/10 & beyond
gla

Buy Beacon Hill (BHR:AIM) at 15p as there are three catalysts to drive it up in the coming months. A revised investment deal with Indian coke manufacturer Global Coke should complete this month and put a greater value on its Minas Moatize coal mine in Mozambique. A larger resource statement is expected in December or early 2011 on the mine; and the company will start new drilling in February on its overlooked, but highly-promising magnesite project in Tasmania. Global Coke said on 19 July it would invest $55 million for a 26% stake in Beacon Hills subsidiary BHR Mining which owns Minas Moatize through new shares (in the subsidiary) and rights to buy coal from the mine. Completion was twice put back from 9 September and 24 September deadlines, as Beacon Hill cited complications with tax-related paperwork. A revised deal will see Global Coke buy 9.45% of BHR Mining for $20 million in new shares in the subsidiary, and the other 16.55% stake come from existing shares held by privatelyowned Consolidated Minerals. Beacon Hill will invest $10 million to increase its stake in BHR Mining from 51% to 68%, which is a better outcome than before as it gets a bigger share of the mine and is paying less than Global Coke. We first flagged Beacon Hill as a key pick of ours at 13.2p (see Plays, Shares, 23 Sep). Chairman Justin Lewis acknowledges there is now less money going into the project, but says the original deal provided more money than was required. The revised terms still leave the mine fully funded for current development plans. Fundamentally for Beacon Hill, Minas Moatize is still valued at the same level: the entire mine is worth $212 million based on Global Cokes investment. That means Beacon Hills proposed 68% position stake in BHR Mining would be worth $144 million or 89.5 million at current exchange rates. With 277.4 million shares in issue at the group level this investment would therefore be equal to 32.3p per Beacon Hill share. This valuation excludes the magnesite operations which house broker Northland Capital values at $39 million (24.2 million), which is equal to 8.7p per share. These calculations imply Beacon Hill should be trading as high as 41p once the Global Coke deal happens. This would be

You need to name your source for that post, gibby. Also cut off at the end.

harrycat-sharesmagazine this week's issue source fyi

no longer holding this one as i got stopped out. Delay in agreement with global coke worries me though as 1. 2months is a long time to sort out "minor issues" and 2. have not heard anything from global coke direct. Looks to me that someone jumped the gun a bit......(had me fooled unfortunately)

robinhood - understand your thinking but i am confident here - & will continue to hold - think bhr have turned the corner sp wise now - onwards and upwards - roll on end of this month & beyond - gl

apologies hc - posted in a bit of a hurry ref yesterday - but robinhood spotted where it was from

have a good weekend all

http://markets.ft.com/tearsheets/performance.asp?s=uk:BHR&ftauth=1290348550387

Over the last week Beacon Hill Resources Plc (BHR:LSE) outperformed the FTSE 100 Index. Overall the relative performance against the index has been mixed.

Shares Magazine 25.11.10

A revised investment deal with Indian coke manufacturer Global coke should complete this month and put a greater value on its Minas Moatize coal mine .

A larger resource statement is expected in December or early 2011 on the mine,and the company will start new drilling in FEB on its overlooked ,but highly promising magnesite project.

Fundamentally for BHR Minas Moatize is still valued at the same level, the entire mine is worth $212 million based on Global Coke's investment.That means BHR proposed 68%position stake would be worth $144 million .With 277.4 mill shares in issue at the group level this investment would therefore be equal to 32.3p per BHR share

This valuation excludes the magnesite operations which house broker Northland Capital values at 24.2 mill which is equal to 8.7p per share.

These calculations imply BHR should be trading as high as 41p once the Global Coke deal happens, but BHR has around 7.5 mill left to repay by July 2011 of a convertible loan note at 8p per share.

Expected the notes will be exercised as soon as the Global Coke deal concludes.

Shares Mag reported to day 25/11/2010

Nice post thank you. It may be of some incidental interest that my nickname since schooldays has been Gib (Initials are G.B.) and my wife calls me "Gibby" when pleased with me !

I did not see that article in shares mag or is eyesight going?

you are welcome oak - i mean Gib - good name!! Got mine from a former girlfriend! Hope your wife calls you Gibby often then! have a good evening

robin - give me your address and i'll get some carrots sent to you quickly!! cheers mate

Tuesday 30 November, 2010
Beacon Hill Resource
Raises US$35.8 million for Mo
RNS Number : 0319X
Beacon Hill Resources plc
30 November 2010



Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining

30 November 2010

Beacon Hill Resources Plc ('Beacon Hill' or 'the Company')

Placing to raise US$35.8 million and Acquisition of Minority Interest in

Minas Moatize Coal Mine



Overview



Fund raising of 23 million (approximately US$35.8 million) through a placing of 184,000,000 new ordinary shares at a price of 12.5 pence per share ('the Placing') to satisfy the terms of the acquisition of the producing Minas Moatize coal mine in Mozambique by BHR Mining Limited ('BHR Mining') and to leave the Minas Moatize mine fully funded for the establishment of a large open pit coal mine capable of producing 4Mtpa run of mine ('ROM'), commencing production from Q1 2012.



Acquisition of minority interest in BHR Mining, taking Beacon Hill's interest in BHR Mining to 100 per cent., for an issue of convertible loan notes, convertible into an aggregate of 238,000,000 new ordinary shares.



Beacon Hill to gain full control of Minas Moatize coal mine, which is currently producing circa 8,000 tonnes per month, and which is expected to increase production to in excess of 2Mtpa saleable coal in accordance with the Company's open pit development plan.





Beacon Hill Chairman Justin Lewis said, "The Minas Moatize coal mine is a unique asset, being the only producing coal mine in the Tete Province of Mozambique, which is considered to be one of the largest undeveloped coking coal regions globally. This fundraising and acquisition of minority interest gives Beacon Hill 100 per cent. ownership of the Minas Moatize mine, which we believe will generate significant value for the Group as we ramp up production towards achieving expected annual saleable coal production in excess of 2Mtpa, potentially generating annual revenues of US$200 million per annum at current prices.



"The Minas Moatize project is now fully funded and we have the right team in place to achieve our development objectives for the mine. The life of mine off-take agreement that we have in place with Indian metallurgical coke producer Global Coke provides us with a guaranteed consumer for our coking coal and provides Beacon Hill with potential relationships with Indian steel producers and thermal coal consumers."





Placing



Beacon Hill Resources Plc, the AIM listed resource company, is pleased to announce that it has conditionally raised 23 million (approximately US$35.8 million) through the placing of 184,000,000 new ordinary shares of 0.25 pence each ('Ordinary Shares') at a price of 12.5 pence per share ('Placing Shares') with institutional and other investors, representing 39.1 per cent. of the share capital of the Company upon admission of the Placing Shares to trading on AIM ('Admission').



Collins Stewart Europe Limited acted as lead bookrunner and joint broker, Renaissance Capital Limited as joint bookrunner and joint broker and Northland Capital Partners Limited as nominated adviser and joint broker.



The net proceeds of the Placing will be used to satisfy the balance of the consideration for the acquisition of the Minas Moatize coal mine by BHR Mining. The remaining proceeds from the Placing will be used to develop the Minas Moatize coal mine, which currently produces approximately 8,000 tonnes per month, establishing a large open pit coal mine with expected production in excess of 2Mtpa of saleable coal, with production commencing from Q1 2012. The strategy remains to operate the coal handling preparation plant on a BOOT (build, operate, own and transfer) basis and discussions continue to progress well in relation to this.



This fundraising has enabled the Company to satisfy the terms of the agreement with the vendors of the Minas Moatize mine, without the requirement for Global Coke Limited ('Global Coke') to make a strategic investment into BHR Mining. Global Coke will remain a strategic partner to the Group through its off-take agreement for the coking coal product produced at the Minas Moatize coal mine for the life of the mine, for which the Group has received a US$5 million advance payment. The Group also remain in discussions with Global Coke concerning the development of a metallurgical coke facility in Mozambique.



The Placing is, inter alia, conditional on Admission. It is expected that Admission will occur, and dealings in the Placing Shares will commence on 3 December 2010. The Placing Shares will, when issued, rank pari passu in all respects with the existing issued shares of Beacon Hill, including the right to receive any dividends and other distributions declared following Admission.



Justin Lewis, Chairman of Beacon Hill, is subscribing for 600,000 new Ordinary Shares pursuant to the Placing and upon Admission will be interested in an aggregate 2,333,320 Ordinary Shares, representing approximately 0.50 per cent. of the Company's issued share capital, and options to subscribe for up to a further 8,000,000 Ordinary Shares.



Timothy Jones, Finance Director of Beacon Hill, is subscribing for 200,000 new Ordinary Shares pursuant to the Placing and upon Admission will be interested in an aggregate 860,000 Ordinary Shares, representing approximately 0.18 per cent. of the Company's issued share capital, and options to subscribe for up to a further 3,210,000 Ordinary Shares



Acquisition of minority interest in BHR Mining



The Company has today entered into an agreement to acquire the outstanding minority interest in BHR Mining, taking its interest to 100 per cent., valuing BHR Mining at approximately US$200 million. This acquisition will provide Beacon Hill with full control of BHR Mining and full exposure to the considerable uplift in value which the Board believes will be generated as the Minas Moatize mine is developed towards open pit production in the near future.



The Company has exercised its existing option to acquire 24 per cent. of BHR Mining from Consolidated Minerals Pte Limited ('Consolidated Minerals') for nominal value of 24. The Company has further agreed to acquire the remaining 25 per cent. of BHR Mining from Consolidated Minerals for a consideration of 29.75 million to be satisfied by the issue of convertible loan notes ('the Convertible Loan Notes'), which are convertible into an aggregate of 238,000,000 new Ordinary Shares.



The acquisition and the exercise of the option are both conditional upon Admission.



Conversion of the Convertible Loan Notes into Ordinary Shares is conditional upon the approval of the Company's shareholders to be sought at a general meeting to be called as soon as practicable, save that Convertible Loan Notes may be converted ahead of such general meeting to the extent that existing shareholder authority already permits. Unconverted Convertible Loan Notes in respect of 138,000,000 new Ordinary Shares shall, to the extent not already converted, convert automatically immediately upon the Company receiving the necessary authority from its shareholders at a general meeting to be convened as soon as reasonably practicable, and the balance of the Convertible Loan Notes may be converted into a further 100,000,000 new Ordinary Shares at any time until the first anniversary of issue at the discretion of the holder. Such Convertible Loan Notes, if not converted in the first 12 months, will attract interest of 15 per cent. per annum from the first anniversary until their expiry on the second anniversary of issue.



The acquisition of the minority interest in BHR Mining from Consolidated Minerals is considered to be a related party transaction under the AIM Rules for Companies. The Directors of Beacon Hill, having consulted with Northland Capital Partners Limited, nominated adviser to the Company, consider that the terms of the transaction with Consolidated Minerals are fair, reasonable and in the best interests of the Company and its shareholders as a whole.



Upon Admission, Consolidated Minerals will hold the Convertible Loan Notes capable of conversion into an aggregate of 238,000,000 new Ordinary Shares, representing a potential maximum holding of approximately 33.6 per cent. of the then issued share capital of the Company.



The Company is not subject to the City Code on Takeovers and Mergers ('the Takeover Code'), but its articles of association contain provisions by which if a person acquires shares in the Company in circumstances in which he would be obliged to make or extend an offer to the Company's shareholders or holders of other securities in the Company under the Takeover Code if the Company was subject to the Takeover Code, the directors may serve notice upon such person (a 'Mandatory Takeover Notice') requiring him (and/or persons acting in concert with him) to make or extend an offer in writing in accordance with the requirements of the Takeover Code as if the Takeover Code did apply to the Company. A Mandatory Takeover Notice would not be enforced by the Takeover Panel, as the Company is not currently subject to the Takeover Code, but a Shareholder who did not comply with a Mandatory Takeover Notice would potentially be subject to certain sanctions laid out in the Company's articles of association (such as loss of voting and dividend rights). The Directors have resolved that they will not exercise their right under the Company's articles of association to serve a Mandatory Takeover Notice if such right arises as a result of the issue of the Convertible Loan Notes or the exercise of the rights of conversion under the Convertible Loan Notes.



Acquisition of Minas Moatize



BHR Mining has entered into an agreement with the Vendors of Minas Moatize Lda for a further extension of the date of the final outstanding payment to 8 December 2010. In consideration of these extensions BHR Mining has agreed to pay a further US$1 million, taking the aggregate consideration to US$41 million.



Issued Share Capital



Following Admission, the total number of shares in issue will be 470,488,956 Ordinary Shares. The Company will also have approximately 37.2 million nominal value convertible loan notes outstanding, of which approximately 7.5 million (plus accrued interest) relates to the convertible loan previously issued on 19 July 2010, repayable on 18 July 2011 and convertible into Ordinary Shares at 5.5 pence per share at any time whilst it is outstanding, having been reduced from a conversion price of 8 pence per share in accordance with the terms of the loan note instrument, and the balance being the Convertible Loan Notes which will be automatically converted or convertible into Ordinary Shares at 12.5p per share as described above.



The maximum number of Ordinary Shares that can be issued in respect of conversion of the convertible loan notes, including accumulated interest, is 401,695,951 Ordinary Shares, representing 85.4 per cent. of the issued share capital of the Company at Admission and a maximum of 46.1 per cent. of the then issued share capital.



**ENDS**



For further information on the Group, visit www.bhrplc.com or contact:



Justin Lewis
Chairman, Beacon Hill Resources Plc
+61 (0) 3 9629 9505

+61 439 162369



William Vandyk
Northland Capital Partners Limited
+44 (0) 20 7492 4750

Charles Vaughan
Northland Capital Partners Limited
+44 (0) 20 7492 4750



John Prior
Collins Stewart Europe Limited
+44 (0) 20 7523 8350

Stewart Wallace
Collins Stewart Europe Limited
+44 (0) 20 7523 8350



Jeremy Wrathall
Renaissance Capital Ltd
+44 (0) 20 7367 8273

Thomas Beattie
Renaissance Capital Ltd
+44 (0) 20 7367 8270



Susie Geliher
St Brides Media & Finance Ltd
+44 (0) 20 7236 1177

I would like clarification as to how they are going to get coal from Tete to the export market at a competitive price ? Crossing Mocambique to Beira is far and I think there is no railway, plus roads must be bad. They could road transport it to southern Malawi, then rail to Beira, but it is still far. I'm sure the Zambeze river is not navigatable from Tete to the coast.
I fear it will be expensive to get coal from Tete to a port, and still be competitive to ship to market.
Coal has been known to exist at Tete for years, even minow Baobab Resources are assessing it. In the 1970's it used to be trucked from Tete to Malawi, for Malawi local use. The trucks drove across Mocambique in convoys for security in the days of the Frelimo freedom fighters. The vehicles would get shot at in those days, and arrive in Malawi with bullet holes.
I think their is no local market for large quantities of coal in east and central africa ?

Perhaps someone knows the answer - please clarify, if you have any ideas.

Beginning to smell more and more like the old Stanelco....

lol - not a nice smell robin!

transport
Infrastructure and Services

Mozambique benefits from good infrastructure with major recent investments into transport and communications. The country also has a robust power supply which is both low cost and easily accessible.

The closest port to Tete is at Beira, approximately 600km away and linked by both a main road as well as the Sena railway, which has recently undergone a US$200 million upgrade, partly financed by the World Bank. The estimated coal carrying capacity of the Sena line is expected to be in the region of 12-15Mtpa once fully operational.

In addition to Beira, there is an existing natural deepwater port at Nacala with associated railway line that runs to Blantyre in Malawi. The Nacala port and railway line will provide a larger and more long-term alternative to the smaller port of Beira, as coal output from the Tete region is expected to far exceed the transport capacity of the Sena railway and Beira Port by 2015. The Mozambican government is already progressing discussions to upgrade the existing Nacala line and build 200kms of new railway to link the existing line with Tete across Malawi. The Nacala line is also seen as a vital link for land locked countries like the Democratic Republic of Congo, Malawi, Zimbabwe and Zambia to gain access to the coast for export. The Mozambican government has already announced that US$500 million has been secured from European governments to develop the line.

Thanks - Gibby. I was not trying to put the Company down, but wished to know about these essential logistics. I am of the opinion that a lot of coal exists at Tete, as I have lived in Malawi and worked for Government, for about 20 years. and have heard about it.
The transport logistics are important out there.
I did not know a working railway went near Tete !
When I was there the infrastructure in Mocambique hardly existed. but perhaps that was because of the Frelimo freedom figters and then the Renamo fighters.
Things must be better now. Mocambique was then a vast underdeveloped country with much unused land. Not many resources seem to have been found yet, apart from Titanium sands by the coast, and some gas by the northern coasts.

you are welcome Rekirkham - and yes there has been trouble over the years out there so understand your aprehension - i honestly believe that a lot of investors are missing the full upside here - i am glad bhr are fully funded now - resource upgrade due soon etc etc i am sure you know the potential here - but i am guessing some investors looking at other good opprtunities out there right now - i am fortunate to have bhr in my portfolio even though it may not appear that way right now - i think warren buffet said 'buy when others fear to' hey ho - have a good evening

AT THE other end of the spectrum is Beacon Hill Resources, a company that can trace its existence back less than ten years. Beacon Hill, quoted on the Alternative Investment Market, owns the only coal-producing mine in the Tete province of Mozambique.

This may not sound like much, but Tete is widely considered to be the largest undeveloped coal region in the world, so much so that two mining monoliths, Vale of Brazil and Riversdale of Australia, are firmly positioned in the area.

Beacon Hill, sandwiched between these giants, may be a minnow but it is already mining coal while they are some years away from production.

Chairman Justin Lewis is based in Melbourne following his marriage to an Australian, but spent most of his career in Britain and now travels frequently to Mozambique.

He acquired the Minas Moatize mine in Tete last May, when it was producing 2,000 tons of coal a month. This has already increased to 8,000 tons a month and is expected to rise to 20,000 tons a month this year and 200,000 by 2012.

The company is moving from more expensive and challenging underground mining to open-pit, which is easier, cheaper and offers a far safer and more agreeable environment for the miners.

Coal has soared in value over the past decade as a result of rising demand. Beacon Hill can obtain $100 a ton (65) for its coal and the cost of digging it out of the ground is about $50 a ton.

So, if prices stay static, the group should deliver turnover of $240m in a couple of years and profits of $120m.

Midas verdict: Beacon Hill is in the high-risk investment category. But for investors in search of adventure, this could be an exciting prospect. The shares are 15.25p. Buy.

It was also tipped by Midas in the Daily Mail as a share for 2011

Newspaper Share Tips

yes i liked midas comment 'Beacon Hill Resources, on the Alternative Investment Market, owns the only coal-producing mine in the Tete province of Mozambique - widely considered to be the largest undeveloped coal region in the world,
Midas verdict: Beacon Hill is high-risk - but could be an exciting prospect.'

i also like (before recent coal price increase) can sell $100 ton for a cost of $50 ton to deliver it from out of the ground!Already producing in excess of 8000 tons per month - will increase this year to at least 20000 tons per month then 200000 tons per month in 2012 - i look fwd to the divis - kerrrchinnnng! gl

interesting list of major shareholders..

Major Shareholders
Notifier** Holding Value*
Renaissance Partners Investments Limited 121,564,103 25,224,551
Consolidated Minerals Pte Limited 120,600,832 25,024,673
Asia Carbon Pacific Pty Limited 53,579,805 11,117,810
Dhunn Carr Industries Limited 39,642,743 8,225,869
Smit Superannuation Pty Limited 33,508,321 6,952,977
ATT Resources Pty Limited 14,833,015 3,077,851
Dzeladia Ceman 7,237,797 1,501,843
RAB Capital Plc 2,337,800 485,094

KEEP an EYE

spread 16.75 / 17p

Has been falling from a high of 25p so is on a retracement level of bouncing back, as today buys are signaling that point.
A very good level 2 also of 5 v 1

Last Month RNS "Beacon Hill Resources , the AIM listed resource company, is pleased to announce that the directors have approved the next stage of a work programme for its Arthur River Magnesite project in north-west Tasmania ('the Project'). The programme, which will include the first drilling to be undertaken by the Group on the asset, will span the next six months and will advance development of the Project ahead of the completion of a Feasibility Study in 2012".

the "KEEP an EYE" yesterday, was at the right time and right price to buy, when MMs were offering almost at middle price 16.89p yesterday and event this morning.

A lot has change since and the desire movement up has started with volume

spread 17.50 - 18p
improving all the time now level 2 of 3 v 4 from 2 v 6 a bit earlier

still the same spread 17.50 - 18p
but improving all the time level 6 v 2 earlier 3 v 4

Is there some tree-shaking going on here? Is there a general retreatment of coal based shares going on? At least Coal of Africa is one following a similar downward trend.

Broker note out earlier in month......

Beacon Hill Resources PLC

FORECASTS 2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Northland Capital Partners Ltd
15-02-11 BUY -2.06 -0.68 -0.74 -0.08

Old King Coal


An exclusive report from James Faulkner of WatsHot.com

Expert tipster James Faulkner, whose recent comment on Range Resources caused such an increase in volumes that the company was forced to issue a statement on the matter, provides two new tips a month and regular updates on specialist small caps site WatsHot.com.

Although past performance is no guarantee of future success, and some tips have gone down in value, the average gain per tip as at 31st December 2010 across the 23 stocks tipped last year was 73.28%.

In this report, first published last Wednesday on WatsHot.com, the expert tipster takes a detailed look at coal mining and the stocks that could help you take advantage of increasing demand for the fuel. To read more insightful analysis like this from James in his daily column and get two brand new tips each month, join WatsHot.com now.

It may be dirty, but coal is set to return to the spotlight in 2011 as demand for cheap sources of energy heats up in the developing world. Latent trends are currently being exacerbated by the recent floods in Australia which have sent coal prices to a two-year high on the back of supply disruption in the world's largest exporter of coal. The situation is said to be worse than the 2008 flooding when the coking price moved above $300 per tonne for the first time, as the number of mines and transportation infrastructure affected is much greater. For a point of reference, the mines affected in 2008 took at least 6 months to recover from the interruption and return to full capacity. The latest rain comes after the country saw its wettest September/November period on record. In the past few months coal miners Rio Tinto, Xstrata, Vale, MacArthur Coal and Aquila Resources have all declared force majeure in the coal-rich Bowen Basin, allowing them to miss delivery commitments. In the week to 24th December, coal prices at the Richards Bay Coal Terminal in Queensland jumped 14% to an average $128.10 per tonne.

The fact that Australia accounts for almost two-thirds of the global coking coal trade points to continued price spikes in the coming months. Coking coal is a vital ingredient in steel-making, and unlike thermal coal it has no obvious replacement. With demand for coking coal remaining very strong indeed in India and China, and a move to a quarterly pricing system has facilitated higher price levels since it was implemented. The Steel Authority recently agreed to pay $225 per tonne to suppliers, a level that is 74% higher than the price it paid during the year ended 31st March 2010. Broker UBS forecasts that prices will hit $250 a tonne in the second quarter of 2011.

The outlook for thermal coal the form of coal used in power stations also looks bright. A report from Deutsche Bank said prices for thermal coal are likely to be 17% higher than expected because of global shortages over the next two years. The bank predicts that thermal coal prices will reach $118 per tonne next year and $140 in 2012. Here, too, the picture is one of rising demand exacerbated by constrained supply in key producing areas.

Rising prices have proved a catalyst for M&A activity in the sector. The most notable activity of late includes Rio Tinto's 2.2 billion bid for Riversdale Mining's Mozambique operations; Vallar's $3 billion deal to make a mining company from the coal assets of the Bakrie family in Indonesia; and Walter Energy's $3.3 billion bid for Western Coal earlier this year (on which WatsHot subscribers bagged a 180% profit). 2010 saw 27 coal deals, compared to 25 in 2009, with single mega-asset transactions accounting for 15 deals and up 50% on 2009 levels, according to Wood Mackenzie Group. This trend is likely to continue in 2011. Here are a few ideas of how to play it.

Churchill Mining (CHL)

Churchill has a potentially world-class project on its hands in the East Kutai project in Indonesia. Even in the project's current embryonic state, broker Astaire believes the company could achieve a sale value in excess of $300 million significantly greater than the firm's current market capitalisation of 114 million. Whatever the eventual outcome, payback would be relatively swift. At 20Mtpa (million tonnes per annum) and a conservative cash operating margin of $20 per tonne, the project would generate free cashflow of $400 million per annum for at least 30 years. At a more realistic margin of $30 per tonne (based on $45/t revenue and $15/t costs), this increases to $600 million per annum. Recent studies have suggested that the production rate could be as high as 35 Mtpa. Getting the project into production will require deep pockets, with direct capital expenditure estimated at $1.2 billion. However, the company states that it looks forward to "moving swiftly into the next stage in the ongoing strategic process and bringing this large scale Project into development", and discussions with third parties are ongoing.

Risk Warning: The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. Not all comments on WatsHot.com cause an increase in trading volumes. UK-Analyst.com is owned by t1ps.com Ltd which is authorised and regulated by the Financial Services Authority and can be contacted at 3rd Floor, 3 London Wall Buildings, London EC2M 5SY.

Beacon Hill Resources (BHR)

Rio Tinto's $16 per share offer for Mozambique coal developer Riversdale is good news for neighbouring Beacon Hill Resources. The Moatize basin in Mozambique is one of the last undeveloped fields containing potential to produce hard coking coal and Rio's move has brought it into the spotlight. Beacon Hill Resources already produces coal on a small scale from the Minas Moatize mine, and has fully funded plans to lift production in 2012 to over 2 Mtpa (million tonnes per annum), 30% of which is expected to be coking coal for the export market. The firm enjoys first mover advantage in the basin and the current infrastructure is capable of handling the planned ramp-up in production. Broker Collins Stewart expects the shares to be a top performer in 2011. The broker values Minas Moatize at 160 million, of which 68% could be attributable to Beacon Hill, implying a pre-funding NPV (net present value) per share of 55p.

Ncondezi Coal (NCCL)

Also operating in Mozambique is Ncondezi Coal, which is located in a separate basin 26km to the north of Moatize where the presence of coking coal has yet to be proved. The shares rose sharply in December in anticipation of a significant upgrade to the existing 1.8 billion tonne JORC Resource following a recently completed 76-hole drilling programme. Upon completion, the company announced that coal had been intersected on all previously undrilled blocks, and comprehensive results are due to be announced some time in the first quarter of 2011. If coking coal is present in significant quantities then the shares should fly; if not, they will probably fall back. This is therefore an investment for risk tolerant investors only.

Coal of Africa (CZA)

South Africa-focused Coal of Africa recently entered into an agreement to pay a total consideration of $75 million for the 1 billion tonne Chapudi Coal Project, which is contiguous with the firm's Makhado Coking Coal Project. Acquired from Rio Tinto Minerals Development Limited and Kwezi Mining Limited, the Chapudi Coal Project provides the company with an additional estimated 1.04 billion tonne JORC resource (of which 90Mt is Measured, 220Mt Indicated and 730Mt Inferred), which could potentially transform its existing 947Mt Makahdo Project into a major coal mining complex situated in the Soutpansberg Basin. Near-term upside could be provided from the results from the Makhado Project definitive feasibility study due in early 2011, or the results of the bulk sample pit being developed to support the off-take agreement with Arcelor Mittal. The shares traded as high as 300p back in 2008, but the recession came along as well as several operating setbacks, pushing the shares as low as 50p. They currently trade at 110p, and broker Evolution has a risk-adjusted 205p target

Some movement up with volume today, a seller is still on the market but the chart is looking much better as the bottom could be a thing of the past.

It seems yesterday ....
Beacon Hill Resources (BHR) initiated coverage with buy by Collins Stewart- price target 38p

the larger trades are now appearing and WINS has moved into the bid 4 v 2 on level 2

Buys at 11.175p are a thing of the past, the latest are at 11.22p.
something is afoot with volume of 3M

now going places 11.50 / 12p +1.25p

money am charts look again on all sorts, at least are delayed OK, are only showing 11.375p

FT.com

By Neil Hume and Bryce Elder
Published: May 24 2011 20:39

Beacon Hill Resources continued to find support from Mondays bullish note from Collins Stewart. The broker placed a 38p target price on the company, which owns the and operates only producing coal mine in Mozambique. We expect a re-rating as trial exports start and the production ramp up grows revenue above $200m pa from 2013, the broker said in its note. Beacon Hill rose 11.9 per cent to 11p.

http://www.ft.com/cms/s/0/8728ae60-8615-11e0-be9b-00144feabdc0.html#ixzz1NIv6cHBA

Yesterday's Collins Stewart broker note ..............

Tete-a-tete

Expanding coking coal production in Mozambique
Initiating with c.250% upside to our Target Price

We initiate with a Buy recommendation on Beacon Hill Resources with c.250% upside to our NPV-based 38p target price. Our $608m NPV comprises mainly the Minas Moatize coal mine on our conservative price assumptions, c.50% below spot. We expect a re-rating as trial exports start and the production ramp up grows revenue above $200m pa from 2013.

Mozambique the right address to grow coking coal production

The company provides exposure to a key emerging coking coal region, which has already captured the attention of the majors. The Tete District of Mozambique offers potential for highly productive open pit mining operations to be brought into operation to produce coking coal at a time when supply constraints and relative scarcity have driven June contract prices to $330/t.

Near term expansion plans to drive re-rating

Beacon Hill Resources plans to rapidly expand production in 2012, mining 4Mt to produce 2.36Mt of saleable coal from 2013 onwards, of which 38% of saleable production is expected to be coking coal. The mine has the funds for the expansion, as a contractor will supply the major capital plant and equipment, to be repaid through the contract operating cost.

Demand for coking coal remains tight

Sustained demand growth from India and China is set to keep the long term coking coal price at elevated levels as producers struggle to expand. We see coking coal prices holding $200/t over the long term, with periods of acute tightness in supply the potential for further peaks above $300/t, and maintaining coking coals 200%+ premium over thermal coal. The ability to produce coking coal is the primary value driver for the business.

Unlocking the infrastructure is the key

Securing access on to the rail line will be a major tipping point as it will clear one of the regions chief challenges. It is possible that the company may have to contend with road haulage and/or capacity limitations in the short term, particularly to achieve the first trial shipment by mid 2011. However we have stress tested the valuation for this scenario which still implies c.80% upside to our risked valuation from the current share price.

sp is real low considering - however many in the same boat as bhr

Finally moving ahead again this afternoon 12.25 / 12.50p +0.625p

hmmm indeed - heading back to placing sp

see sey.p target 38p here - still way undervalued when it achieves that imo

Piece covering Tete Province and Mozambican future plans for infrastructure.

http://www.bernama.com/bernama/v5/bm/newsworld.php?id=588686

yep cheers

satisfactory day at the office here

7.5m bought 0 sold and sp static.
2517

2517, same as yesterday, a lot more buys then sells, MMs are holding this down..

.

Looking for a steady re-trace back towards 12.50p-13p, well undervalued at the moment..OMO.

.

From British Bulls tonight ......

BUY CONFIRMED

BHR 3.5000 +0.5000 +16.67%

Candlestick Analysis
Today’s Candlestick Patterns:

LONG WHITE CANDLESTICK

Type: Reversal/Continuation
Relevance: Bullish

The recent bullish formation leading to the BUY-IF signal is confirmed today. The market is ready for a new bullish move. It opened today
with a gap-up and the day’s activity resulted in a close higher than the open. This is one of our valid confirmation criteria.

continuing with yesterday's rise on good volume also over 4m in less than 1 hour

--------------------
Mozambique: new railroad for coal / 22 November 2012

Mozambique launches US$2 billion international tender for railroad project

The Mozambican government plans to launch an international public tender for a rail and port project worth US$2 billion, the chairman of state port and rail company CFM said Wednesday in Maputo.

“The public tender will be launched by the end of the year, it will be worth US$2 billion and is intended to solve the logistical problems related to increasing coal exports,” said Rosário Mualeia on the sidelines of the Coaltrans conference, cited by financial news agency Reuters.

The public tender is to build a 525 kilometre railroad from Tete province to Macuse, in Zambézia province, and a port with capacity to handle 20 million tons of coal per year.

Mualeia also noted that work to rebuild the Sena railroad, which is the only rail link between Tete and the coast, will be finished by the end of the year, after which it will have capacity to carry 6.5 million tons per year.

The chairman of Portos e Caminhos de Ferro de Moçambique (CFM) noted that several rail and port projects due to be carried out would have an overall cost of US$12 billion and be completed within five years. These new projects are expected to increase the country’s export capacity to 120 million tons of coal per year.

Mualeia also said that in 2013 an independent operator would be set up to manage all the railroads, although prices and policy for accessing the network would be established by a state regulator.

Steady share price rise and volume now 8M

Breaking the 4p after some steady attempt for a couple hours

it looks like it will be breaking also yesterday's large volume

4.20 / 4.25p +0.20p

From the TIMES - Sunday 25th November 2012

BHR - Beacon Hill Resources continued to rally sharply as the market belatedly cottoned on that Renaissance Capital, the Russian investment bank, was not about to dump its near 34% stake. The miner of coal in Mozambique jumped another 14.3% to 4p. Sentiment towards Beacon Hill, like other coalminers, has been lent a further fillip by hungry Chinese demand for the fuel.

RUMOURS OR TRUTH ?

from a poster on LSE,

maxwells1
Posts: 6
Research
Opinion: Strong Buy
Price: 3.05
Bid in the wings!
Today 09:26
Wed, 2 Jan 2013 at 9:209:20Message starred FROM R BEST TO You re BHR Hide Details FromR BEST Tomattwest_1972@yahoo.com Re Beacon Hill Resources

The chatter amongst the stripes in the city is GOOD!
BHR has a bid waiting at 12p as soon as the Rail allocation is granted with the next 2 weeks!
BUY

SP up on rolling stock lease signed.
2517

Excellent news.
2517

The new MD Rowan Karstel seems to have really got this lot moving. If you have not read the Strategic Update put out on 3/12/12 after one month in office I suggest you do.

There was a placing @ 3p last week, today the same amount of the Placing has been on the market a couple times

The share price is bouncing from the 3p also bottom recently

A follow through today at 3.33p, volatile earlier as is on the order book ( AT)

Something is happening today, some large trades are moving the share
certainly there are on the turn

On the turn for a couple days now, there was large volume 3 weks ago, when share price was at its lows

The chart shows a typical bullish sign of an Inverted " HEAD & SHOULDERS "

Great chart.

Interim Results

H1 2013 Highlights

+300% increase in coal wash plant capacity to 1.8 Mtpa completed at flagship Minas Moatize Coking Coal Project in Tete, Mozambique ("Minas Moatize")
o First low volatile premium hard coking coal and export quality thermal coal product produced
o Plant commissioning phase is progressing well with potential challenges identified and being rectified

+31% increase in JORC Resource at Minas Moatize - upgraded to 86.8 Mt (Measured and Indicated of 76.3 Mt) from 66.4 Mt Measured and Indicated
-- Strategic end-to-end logistics solution to transport coking coal produced at Minas Moatize to export markets via the port of Beira:

o Rail: Receipt of 7.7% capacity allocation on the Sena Line initially equivalent to 0.5Mtpa and anticipated to rise to 1.5 Mtpa following Sena Line capacity expansion
o Rail infrastructure development is progressing well with the first Minas Moatize trains expected to depart for the Port of Beira in Q4 2013
o Rolling Stock: U$21 million Lease agreement with Thelo Rolling Stock Leasing Proprietary Limited ("Thelo") for the provision of 5 locomotives and 90 wagons for the Sena Rail Line
o Leasing conditions precedent finalised with the first rolling stock expected to arrive at Minas Moatize in Q4 2013

Mining Contract signed between the Company and the Government of Mozambique to enhance the stability of the fiscal and regulatory environment for a period of 25 years
-- Approximately US$21 million (approximately GBP14.1 million) raised through a placing to strengthen the Company's balance sheet, upgrade rail infrastructure including rail sidings, to commence the Phase 2B and 2C wash plant upgrades and for rail rolling stock related and general working capital purposes
-- Funding discussions progressing with both conventional pre-export senior debt providers and a number of equipment providers to vendor finance the capex for Phase 2B and Phase 2C expansion on a Build, Own, Transfer ("BOT") basis
Rowan Karstel, Chief Executive Officer of Beacon Hill commented, "The first six months of 2013 was an absolute turnaround for Beacon Hill. The Company achieved a number of key milestones which will ensure our Minas Moatize Coking Coal Project will become a tier 1 asset with SENA rail access to the Port of Beira, Mozambique. We continue to advance Minas Moatize as evidenced by inaugural production of coking and thermal coal following the completion of the first phase of our wash plant upgrade.

"While the spot price of coking coal is lower than in previous years, low cost producers such as Beacon Hill remain well positioned to build value, particularly when considering the high quality specifications of our product and the on-going progress made in executing our cost efficient logistics solution. This differentiates us from many of our peers and with the associated rail infrastructure developing well, we look forward to completing the commissioning of the wash plant and moving into full production over the coming months."

CHAIRMANS REPORT
Overview
I am pleased to report the first half of 2013 has been one of the best periods for the development of Minas Moatize Coking Coal project since its acquisition by the Company in 2010. The new management team made an immediate impact and achieved a number of strategic milestones. The Company has progressed in every aspect of our business: recruitment of an experienced coal executive team continued with key appointments including Chief Operating Officer, Coal Marketing Director and Rail Manager, the Phase 2 wash plant commissioning increased our processing capacity threefold to 1.8 Mtpa, we achieved landmark Sena rail allocation, we broke ground at on- and off- load rail sidings, achieved a +31% JORC resource upgrade, secured US$21 million of new rolling stock and signing the Mining Contract with Government of Mozambique, to list just some of the notable achievements during H1 2013.

The frustration for the Board and shareholders is that despite this transformational first half and a US$21 million equity placement during April 2013, the Company's absolute share price performance continued to underperform in comparison to our expectations. The main reason can be attributed to the state of global coal markets where the spot hard coking coal price fell to five year lows during the first half of the year at approximately US$135/ton FOB Australia. With a modest recovery recorded since then and taking into account the long run marginal cost of production in Australia (the world's largest exporter) is approximately US$160/ton, we have hopefully reached the bottom with a number of higher cost producers incurring operating losses.

Corporate & Financial
In April 2013, against a difficult market backdrop for coal and commodities generally, the Company was successful in raising a further US$21 million and expanded its shareholder base. This was a vote of confidence in our new strategy, our new management, and quality of our coking coal asset.

The balance sheet remains strong with net assets of US$68 million and cash and contractor prepayments at the period end of US$13.6 million (including US$6 million of contractor prepayments). The Board is confident that during H2 2013 it will secure the necessary funding for the Phase 2B/2C wash plant expansion to 2.8Mtpa via a Build, Operate, Transfer ("BOT") contract with one of its preferred contractors.

Outlook
The Board expects difficult coal market conditions experienced during H1 2013 to persist for the remainder of the year. Nonetheless, we have a clear and focused plan to establish profitability by increasing our scale and operational efficiency.

The Company is in the fortunate position that upon completion of Phase 2B upgrade to 2.8 Mtpa, Minas Moatize will transition from a Tier II to a Tier I cash cost producer, capable of generating profits even at the current depressed prices. In addition, the Minas Moatize coking coal project scores well in every objective criteria for a globally significant coking coal asset namely (i) significant JORC resource (ii) tier I cash cost (iii) availability of rail infrastructure (iv) quality hard coking coal (v) presence in the emerging Mozambique coking coal basin (vi) it has entered the production phase. For this reason the Board is of the opinion the current value of the Company is substantially undervalued and shareholders will be eventually rewarded with a re-rating as our profile and presence in the seaborne coking coal market grows.

As a junior resource company, high quality growth is critical to shareholder returns and Management has been mandated to review a number of new initiatives including an extension of our resource into adjacent properties as well as vertical integration into higher value coking coal activities. The Board expects to update shareholders further during Q4 2013 on those initiatives and transactions under review.

I would like to close by commending our new management during a successful first half year and look forward to sustaining this level of performance as we move in to full scale production. In addition, I would like to thank our shareholders and local stakeholders for their continued support and I look forward to providing further news on our development into a profitable Mozambican coking coal producer in due course.

Possibly a good entry level at around 2.30p as this can move up to 6p quite quickly when the market allows.

Brokers have a 9p target on this at present.

Was looking for an entry point again, but last week news of convertible issued last week had a bad taste for the share price and now lingering at 1.40p with heavy volume
will have to wait as it settles as days goes by.


With compliments from ..... suki the dog ... at III for below comment and resume of things >>>>>>>>>>>>

The company updated us on their new operational strategy following the funding announcement on Friday.
• Against a weaker backdrop in coking coal prices, the company plan to keep the current plant facility operating minimally till the expansions are in place.
• It will take 8 months to complete the expansion and 4 months to ramp up.
• The current cash burn rate is $1.5m/month.
• US$13m to be used for the expansion against a previous estimate of $10m reflecting the investment in power required to counter current power outages.
• $10.1m is a provision to support company in working capital requirements during the construction and ramp up phase.
• The targeted coking coal production at full ramp up at the end of 2014 of 540,000t should coincide with availability of rail capacity of 0.5 mtpa.
• The thermal coal will continue to be sold at the mine gate.
• Current thermal coal sales at the mine gate are achieving $50/t against production cost of $30/t.
• They are currently selling around 3,000t of thermal coal at mine gate which should generate cash flows of around $60,000/month.
• Small tonnages are being sold to a wide group of buyers and sales are done on a cash basis.
• The hard coking coal price is expected to be produced at an FOB price of $105/t.
• The company expect to deliver these costs as strip ratio at the mine is 0.5 resulting in mining and processing cost of $17/t with G&A bringing this up to $30/t.
• Logistics and other costs bring the total FOB cost/tonne of $105/t – port costs are currently high at $20/t.
• This compares with BMA mine site cash costs of around $75/t and total unit cash costs of $150/t (this includes all cost including maintenance capex).
• Port costs are expected to be brought down by their JV with Jindal on port sidings.
• The coking coal price achieved is at a $10/t discount to the export price.
• The offtake agreement with Global Coke is for 600.000 t per year so they can take the full production being targeted.
• Phase 2C expansion should enable them to achieve an uplift in coking coal yields from 15% to 20-21%.
• The convertible issued to Latitude will have the coupon rolled up for the first year.
• The company are offering the convertible to other shareholders.


Conclusion: The new funding to implement their expansion plans is needed as the company are expected to run their current operations at a minimal level till expansion plans are put into place requiring a greater working capital element. This is potentially a disappointment as the market had expected the company to generate revenues and cash having put into place the first part of their expansion.
The sale of coal at the mine gate should generate cash flow of around $60,000 a month offsetting some of the current cash burn of $1.5m a month.

expansion plans will enable the company to improve yields on the coking coal side and achieve first quartile operating costs with low strip ratios of 0.5. The targeted production of 540 kt of coking coal by the end of 2014 should also co-incide with availability of their rail allocation of 0.5 mtpa.

The shares are unlikely to do very much against this backdrop till plans are successfully implemented.

JKX recently fell from 78p down to 48p on news of a fundraising and has since bounced back up again. I can see a similar thing happening with BHR and a lot of stop losses must have been triggered today as well etc.

The spike down to 1.04p on Monday seems to point to a possible bottom target on this one, although indicators show its looking very oversold at present, but with the moving averages all negative for now.

And goes to show a piece of good or bad news will blow a AIM stock chart away.

Once the storm pass the good weather returns

over here the sells have slow down and for the last couple days buyers were outplacing the sells and share price was slowly bouncing, today is showing signs of wantig to make a big impact

The 5 days chart shows clearly the flat bottom of the last couple days and now rising
much faster

British B's updated BHR to a BUY CONFIRMED! signal and they stated 'Be part of the BUYING Boost' !!!

BHR looking very oversold on the daily chart, the business was valued at 2.6p prior to the recent fundraising etc. So this stock will probably double your money at some point on the share price recovering from here.

Z.Mir's TradersO chart showing a minimum price target of 1.5p! within the next 2-3 weeks!!

BritishB's also have a buy signal now showing for BHR!!

You forgot to say that yesterday's closing candlestick created a BULLISH HARAMI CROSS a reversal pattern that with volume today was right for this morning bounce.

I am in again from today

0.98p +0.17p

Rail Logistics Update
Beacon Hill Resources plc, the AIM and ASX listed coal producer, is pleased to announce an update on rail logistics at its flagship asset, the Minas Moatize Coal Mine in Tete, Mozambique.

-- Arrival of maiden test train to trial the Tete coal loading facility

-- Five new 2,240 kW diesel locomotives on track to be completed by the end of November 2013 at RRLGrindrod's workshop -- 90 Transnet Engineering rail wagons expected to arrive by the end of January 2014 in the port of Beira, Mozambique

-- Beira off-loading facility pre-conditions complete with final Simplified Environmental Report to be submitted by the end of November 2013
Rowan Karstel, Chief Executive Officer of Beacon Hill commented:

"We are very pleased with the strong progress made towards final commissioning of our rail logistics solution in Tete and look forward to the positive cost implications incurred following completion. Our current focus for Minas Moatize is to build the mine to become a Tier 1 coking coal asset and this will represent an important milestone towards this goal. We look forward to updating the market regarding both our logistics and wash plant upgrades in the coming months."

Mac van der Merwe, Rail Operations Manager commented:
"The first test train has now arrived into the newly built Tete siding to undertake a test loading of coal. The locomotives carried 42 rail wagons and loaded 2,600 tonnes of coal under test conditions. This trial exercise was carried out in conjunction with our JV Partner JPSL. This commissioning is a major milestone for the Company whilst we wait for first delivery of our own rolling stock which is due at the end of this month. Beacon Hill's train drivers are now fully accredited to operate in Mozambique and are on the ground and ready to begin our logistics operations for the Company and third parties."
Tete loading facility (Carbonoc) Update

Beacon Hill, in conjunction with JPSL, its JV partner in the Tete loading facility, has undertaken its first test of the first train into the new purpose built facility. The diesel locomotive arrived to collect 2,600 tonnes of coal and loaded the maiden cargo from the facility. Work on the site is continuing with the aim to have a fully operational facility in place by the end of Q1 2014. The facility has been under development during 2013 and covers a total stockpile area of 7 hectares for a capital expenditure of circa US$6 million. The facility has two rail lines and dedicated stockpile areas for Beacon Hill and JPSL.

Beira off-loading facility (Warehouse No 4) Update
The Company has notified Portos e Caminhos de Mocambique ('CFM') that all permitting requirements for the development of the facility have been completed and the remaining Simplified Environment Report will be completed by the end of November 2013. Thereafter the Company intends to commence construction activity on the site.

Rolling Stock Inspections
The Company has recently visited both the RRLGrindrod and the Transnet Engineering workshops to inspect the new rolling stock being manufactured. The locomotives are expected to be delivered at the end of November 2013. The final installation of on-board computers will allow the fleet to go immediately on rail and communicate with the train operations centre in Beira. The train drivers, crews and support personnel required for the running of the trains have been trained by RRLGrindrod and completed the CFM accreditation process during August 2013.

Well, I'm in as of a couple of days ago with a small purchase... must be the bottom of the downside now and after the good news now looking for a recovery in the sp.

How much coal per month is currently being sold? Does anyone know?

MMs decided to stop playing on the order book and ........... let it go

since volume as "AT" have gone places as the share price

The chart looks more and more like an INVERTED HEAD and SHOULDERS

A late trade from 11.35am for 2.5M at 0.92p just reported could be the reason of cleaning some sales ( a BUY at the time )

All over the place late this afternoon, looks like some decided to take profits already

BritishB's has posted a stay long signal today for BHR this should have another go at 1.50p-2p again as still oversold at present and was due a bounce back up following the recent placing/positive RNS rail update.

The candlesticks are displaying a relax and stay long today!

shocking rns today but may lead to opportunity

Looks bad gibby.

agreed - rns out

Interim Results


RNS Number : 3518S

Beacon Hill Resources plc

23 September 2014






Beacon Hill Resources Plc / AIM: BHR / Sector: Mining



Beacon Hill Resources Plc ("Beacon Hill" or "the Company")

Interim Results for the period ended 30 June 2014



Beacon Hill Resources Plc, the AIM listed coking coal company, announces its financial results for the six month period ended 30 June 2014.



HIGHLIGHTS:

• Unadjusted loss in the period of US$ 9.96 million compared to the corresponding 2013 period loss of US$7.64 million - reduction in the first half loss compared to the corresponding 2013 period, when adjusted for rail operating leases and fair value of warrants issued.

· Reduction in cash utilised in operations by US$ 1.2 million to US$ 5.9 million when compared to the corresponding 2013 period of US$ 7.1 million, notwithstanding rail operating lease costs incurred during this period whilst none were incurred in the in the corresponding 2013 period.

• Further amendment agreement with Vitol SA related to the US$ 10 million senior debt facility to defer the principal amortization originally due in April 2014 of US$ 1.7 million to 30 September 2014 as well as accruing interest until 30 September 2014.

• Amendments to the Coal Offtake Agreement with respect to price discounts and to subordinate the repayment of the Global Minerals US$ 5 million coal prepayment to any new senior debt.

• Rolling Stock shipped and commissioned in Mozambique comprising five locomotives and 89 wagons, to be operated under a 10 year operating lease.

· Moatize coal loading site commissioned with JV Partner.

• Rolling stock Sub-lease agreed in principle and pending final approvals from the Government of Mozambique.

• Received US$ 20 million offer of project financing for the Minas Moatize Mine's washplant expansion project, subject to financial and legal due diligence, of which the financial due diligence has been completed and the preliminary legal due diligence report has been received.

• Sufficient working capital funding arranged to the end of 2014 with up to US$ 17 million working capital to be raised in support of senior debt and expansion project.

• Post period end, fundraising announced to raise up to £1.25m to provide sufficient working capital to the end of 2014.

• Target to complete expansion project funding (debt and equity) and restructuring of balance sheet by end of Q4 2014.









CHAIRMAN'S STATEMENT



During the first half of 2014 Beacon Hill made significant progress with the Minas Moatize coking coal project despite the very challenging pricing environment for coal. Notably, the Company shipped and commissioned five new locomotives and 89 purpose built wagons with a value of US$ 21 million which are to be leased on a 10 year basis as well commissioning the Moatize Mine's coal loading facility with its JV partner following 12 months of infrastructure development. The embedded value of the Company's bulk logistics chain has grown over the period and is the cornerstone of creating a competitive cost advantage to re-commence coking coal exports from Minas Moatize.



The Company also received a proposal for a US$ 20 million new senior debt funding facility for the washplant expansion project during March 2014, after submitting final due diligence reports together with concluding the EPC tender and form of contract for its construction early in the year.



Looking forward to H2 2014, the depressed market for coal prices globally has meant that the project will likely remain in care and maintenance until the construction of the expanded washplant has been completed with a key focus to re-enter production as a Tier One cost producer in late 2015/early 2016.



Therefore, with no anticipated production during H2 2014, focus of the Board and management will be solely on debt and equity expansion project funding, logistics and restructuring the existing debt on the balance sheet.



These H2 2014 objectives can be summarised as:

(i) conclude the rail sub lease to offset rail costs;

(ii) the completion of the new US$ 20 million senior debt facility to fund capex;

(iii) the restructuring of the US$ 25 million existing senior and sub-ordinated debt;

(iv) raising sufficient additional equity / working capital, expected to be upto US$ 17 million or as specified by the new senior debt lender; and

(v) to execute the EPC contract for the expansion project after completion of the above.



There are a significant number of hurdles to overcome, but we remain confident we have the correct team to do so and I look forward to updating shareholders in due course as our management team progress the H2 2014 objectives.





Justin Farr-Jones

Chairman

Bought in again last week after being out for a while.

anyone still in ? any thoughts ?

Unfortunately I'm still in and nursing a loss. My thoughts are, why did I bother with this company.
2517

bought some this morning -the rns has positive wording and add last recent rns to it finally looking better here - 12mth low good time to avg down perhaps?

i like the FURTHER AGREEMENT wording todays rns:


' The Company will update the market once a further agreement has been reached. '

&







Agreement to Sub-Lease Rolling Stock
RNS
RNS Number : 8852T
Beacon Hill Resources plc
09 October 2014




9th October 2014

Beacon Hill Resources Plc / AIM: BHR / Sector: Mining



Beacon Hill Resources Plc ('Beacon Hill' or 'the Company')

Agreement to Sub-Lease Rolling Stock



Beacon Hill Resources PLC, the AIM listed Mozambique coking coal miner, is pleased to announce that it has entered into a sub-lease of its rolling stock to an undisclosed party ('the Sub-lessee').



This sub-lease agreement will support the Company's expansion strategy to advance Beacon Hill's Minas Moatize Coking Coal Project to Tier One cash cost status which will deliver an economically robust mining project even during periods of depressed coking coal prices.



Highlights

· The Sub-lessee will utilise all of Beacon Hill's five locomotives and 90 rail wagons on the Sena Line

· Minimum lease term of 12 months with extension option

· Increases Sena Line utilisation by up to 500,000 tonnes per annum

· Final regulatory and Minister of Finance approval received and this represents the completion of a key milestone towards the completion of the Senior Debt Facility



Rowan Karstel, CEO commented:



"We are delighted to have secured a high calibre counterparty to lease our rolling stock on the Sena Line further proving the viability of the logistics solution whilst Beacon Hill's Minas Moatize Coking Coal expansion project is advanced.



"This transaction is a win-win for ourselves and the Sub-lessee whilst also increasing the utilisation of the Sena Line. Our two train sets are the newest class of rolling stock and are a big boost for the entire Mozambique coal supply chain. We have taken 9 months to conclude this transaction and with considerable assistance from the Government of Mozambique represented by the Ministry of Mines and Ministry of Finance."



Background to the Transaction

During H1 2014, BHR announced the delivery of five new Grindrod locomotives and 90 Transnet Engineering rail wagons to Mozambique after 12 months of manufacture. The transaction was funded by Thelo Rolling Stock South Africa, with Beacon Hill's subsidiary BHR Investments Mauritius as lessee. The new rolling stock has a value of approximately US$21 million.

Pending the upgrade of the Minas Moatize coking coal mine to a Tier 1 cash cost producer, Beacon Hill announced its intention to sub-lease the rolling stock until it re-commenced export operations through the Port of Beira. The addition of the rolling stock translates to 500,000 tonnes per annum of new rolling stock capacity to the Sena railway rolling stock fleet with expected availability rates of 94% associated with new fleet.

good news

Beacon Hill Resource
New Debt Facility and Restructuring Update
RNS Number : 1088W
Beacon Hill Resources plc
04 November 2014


4 November 2014

Beacon Hill Resources Plc / AIM: BHR / Sector: Mining



Beacon Hill Resources Plc ('Beacon Hill' or 'the Company')

New Debt Facility and Restructuring Update



The Company is pleased to announce a further update on the new debt facility for the Minas Moatize coking coal mine expansion project in Mozambique and the restructuring of existing Group debt facilities.





Highlights



· Final revised legal due diligence report submitted to a South African Development Finance Institution ("DFI") with final approvals expected by year-end

· Amendment agreement signed with Vitol SA to defer principal and interest on the senior loan facility to 30 January 2015 pending completion of the new debt facility

· Negotiations ongoing with Convertible Loan note holders to restructure debt to facilitate new debt facility

· Commenced renewal of the MML Mining Concession for a further 20 years



Rowan Karstel, CEO commented:



"We are making steady progress in both our new project funding and restructuring and I remain optimistic we can deliver some resolution for our shareholders prior to the year-end. The Minas Moatize coking coal mine is one the very few globally that can sustain operations in this challenging price market if we complete the proposed expansion to 3.2 million tons per annum."





DFI New Senior Facility Update



The Company is pleased to announce legal counsel appointed by the DFI has now submitted its final revised legal due diligence report. Further delays were encountered by an additional request for corporate records dating back to 2005.



The Company expects the final review and approval process to now commence at the DFI with any material updates to be communicated to shareholders in due course.



Existing Vitol Senior Debt Facility



The Company is pleased to announce it has reached an agreement with Vitol SA regarding an amendment to the terms of the US$10 million senior debt facility.



As previously announced, amortization of US$1.7 million due 30 September 2014 has been deferred during this year and the Company has agreed to defer a both this amount and a further US$2.4 million due 31 December 2014, whereby US$4.1 million shall now fall due 30 January 2015 by which time the Company expects to have completed either a restructuring or refinancing of the Vitol senior debt facility. In addition the Company has elected to capitalize interest payments for the time being to conserve cash within the Group. The total capitalized balance outstanding to Vitol (including capitalized interest to 30 September 2014 and amendment fees) is US$10.56 million carried forward. The successful restructuring of the Vitol senior debt facility will likely be a key condition precedent to drawdown of any new DFI senior Facility in 2015.



Convertible Loan Note Re-Structuring



In addition to negotiations with Vitol SA and the DFI, the Company has continued negotiations with all existing convertible loan note holders regarding a potential restructuring of US$ 14.8 million in loan notes currently due for redemption between July 2015 to July 2018. The successful restructuring of the Convertible Loan Notes will be likely to be a key condition precedent to drawdown of any new DFI senior Facility in 2015. A further update will be issued in due course in the event an amendment agreement is concluded between the Company and convertible noteholders.





Renewal of MML Mining Concession



In April 2014, Minas Moatize Limitada ("MML"), the Company's wholly owned subsidiary was awarded a 25 year mining contract by the Government of Mozambique for Licence 1151L, which was subsequently ratified by the Administrative Tribunal. One of the key terms and benefits of the Mining Contract for MML confers the automatic right of renewal of the mining concession in favor of MML, subject to compliance with applicable laws. The Company's existing mining concession was granted in 2005 for 10 years.



MML has therefore commenced the renewal process for the mining concession for a further 20 years and on the basis of the signed Mining Contract would expect a timely renewal of the concession prior to expiration of the existing concession in June 2015.

onwards and upwards

really?

must be the curse of king tut again ...beacon hill etc hmm

And compliments of the season to all those stuck in BHR!