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 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