Epic : CDN

Web Site : http://www.caledonresources.com

Broker Note 1st Aug 2007 : http://www.caledonresources.com/Images/FileManager/192.pdf


About Caledon: Caledon is quoted on the London AIM market (Ticker: CDN). In 2006, the Company acquired two Australian coal projects; the Cook mine and the Minyango coal project, both situated in the Bowen Basin, Queensland. The Cook mine is host to a mineable reserve of 17 Mt of coking and thermal coal with a 10 year mine plan. On 21 March 2007, Caledon announced commencement of production at the Cook mine with targeted output to reach a 100,000 tonnes per month rate by the end of 2007 and 1.5 million tonnes per annum in 2008. On 14 March 2007, the neighbouring Minyango project resource was brought to a JORC standard of 240 million tonnes which was an increase of 17% on original estimates. Caledons aim is to develop the Minyango project to potentially increase the Companys production in the near-term to accompany its already producing Cook mine project.

**********************************

Caledon Resources PLC Interview With:
Mark Trevan Managing Director

Dated September 20, 2007

http://www.wallstreetreporter.com/page.php?page=featured&id=26736

TTT

cant believe no comment on this cracking share.

no way 80p in future now........nearer 2 quid in near future i predict....dyor

8 December 2009

Caledon Resources plc (AIM: CDN, ASX: CCD)

('Caledon' or 'the Company')

Focus on Growing Cook Production and Developing the Minyango Project and Discontinuation of Sale Process

The Board of Caledon announces that following an extended strategic review and solicitation of interest in the Company it has decided that it will no longer actively pursue the sale of the Company. Given the positive outlook for coal and the opportunities at hand, Caledon will remain one of the few independent coal producers in the Bowen Basin and focus on growing the production at its Cook mine and developing the Minyango Project.

Consequently the Company is no longer in an Offer Period pursuant to the City Code on Takeovers and Mergers.

cyril

December 09, 2009

Caledon Resources Tires Of Waiting For A Bid And Gets Back To Business


By Charles Wyatt



When we last wrote about AIM and ASX-listed Caledon Resources, the managing director, Mark Trevan, was virtually in purdah as earlier in the year the company had asked RBC Capital Markets to find a buyer. The company in the frame was the Essar Group of India, though this was never confirmed officially. But either way, its due diligence went on and on, while junior mining companies were showing strong recovery and the price of coking coal was rising. Meanwhile, Mark could say very little about the bid with the compliance man from RBC breathing over his shoulder, but there was a sense that he could now see a very positive future for the company and hoped the bidder would go away. The title of the piece we ran while all that was going on was: Caledon Resources Awaits A Bidder, But May Still Retain Its Independence As Coal Markets Improve.
Well, we got it right. Caledon has just announced that it is no longer up for sale and that it has taken the opportunity offered by the whole offer period to carry out an extended strategic review. This review has convinced the company that it can do better on its own, as one of the few independent coal producers in the Bowen Basin. Quite soon investors will start to appreciate that this is a very strong position to be in, as the shares, which rose at one time to 70p, on the likelihood of a bid, are now back to 42p. Investors get bored if a deal does not materialise quite quickly in such circumstances, so the fall in the share price is understandable, but now they should start to think again.

Mark Trevan is convinced of the positive outlook for coking coal and he can now concentrate on taking advantage of the improved conditions. Theres not much he does not know about coal, as he spent 25 years on coal marketing, corporate strategy, and project feasibility with Rio Tinto, and he was also general manager of its Queenland coal subsidiary at one time, before he joined Caledon. Rio Tintos Kestrel and Clermont mines are not too far from the Caledons Cook mine, which the company acquired as a mothballed project in 2006 and which Mark has since brought back into production. The current resources at Cook amount to 126 million tonnes in the measured and indicated JORC categories, so it has plenty of life ahead of it.

It was bad luck that Caledon was hit so heavily by the financial shambles of 2008, as the price of coking coal fell heavily and the company had to react by cutting back on its operations. However in the recent September quarterly report it was clear that Mark Trevan has not been sitting on his hands as he announced that primary mining activities were on schedule to relocate and to commence production at the new Argo pit bottom area of the Cook mine by January. This area presents a newer and more accessible section of the southern extension.

The good news is that the tonnage of saleable coal should increase to 700,000 tonnes next year, and the company is investigating options for further increases in the years ahead. To put these increases into perspective George Salamis, the director responsible for the acquisition of Cook, reckoned a target of 1.5 million tonnes was a possibility within two years. The strength of the Aussie dollar against the US dollar is a slight fly in the ointment, as there has been a 22 per cent reduction in revenue/tonne and the outcome is a likely loss of up to A$12.7 million for 2009. The pain is mitigated by the fact that the company still had A$28.8 million in the kitty at the end of June.

As Mark Trevan points out, however, Caledon sells its coal on a contract basis and this contract is due for renewal next April. There is little doubt that there will be an increase in price which will more than compensate for the strong Aussie dollar. Cash flow will benefit and this will mean that more work can be undertaken at the Minyango exploration concessions which are close the Cook mine and were acquired at around the same time. There is not huge time pressure to move into development and production as the company will anyway wait for construction of the proposed new coal loading terminal at the port of Gladstone, forecast for 2013. Caledon is a foundation shareholder of the Wiggins Island Coal Project Terminal so Mark will be well appraised of progress. Even so, Minyango is moving steadily towards feasibility, as a concept study carried out last year proved positive and the first stage of field work for the base line ecological study required as part of the environmental permitting process has been completed.

The Bowen Basin in Queensland is host to the largest coal reserves in Australia and the coal companies operating there produce around 100 million tonnes of coking and thermal coal. In fact the region accounts for just under half the global seaborne traded market in coal. Caledon is therefore in the right place even if it is a bit of a minnow at present. It is now up to Mark Trevan to make it into a bigger fish -and there are few men better qualified to do so.

http://www.minesite.com/nc/minews/singlenews/article/caledon-resources-tires-of-waiting-for-a-bid-and-gets-back-to-business/1.html

Extract from Bloomberg article this morning concerning the BLT coking coal deal announced @ $200/T, above expectations, broker note from Arbuthnot:
"In the junior sector in London, the two companies with direct exposure to the pacific (or Asian) seaborne market for hard coking coal are Western Coal Corp and Caledon Resources. If this agreed prices becomes the benchmark, we expect both Western and Caledon will see an annualised earnings boost of c. 140% on EBITDA and 170% on EPS. If higher contract prices are established over the long term, a 100% increase in the NPV valuations."
"BUY WTN and CDN
On this news we re-iterate our Buy recommendations for these two coking coal producers, expecting them to perform well as further positive news-flow on prices is announced. On Western Coal Corp (WTN) we have a buy recommendation, and upgrade our target price to 300p. For Caledon Resources (CDN), we re-iterate our Strong Buy recommendation and 80p target price. "

Y/E results out today. Sp up 5% so far.
Also M/A activity in the sector.
Broker note from Arbuthnot:"Caledon Resources Macarthur Coal News on the back of the Macarthur Coal News we also re-iterate our strong buy and 80p TP on Caledon."

60p next stop soon, hopefully. Chart looking good.

Getting a bit stretched, but 68p next stop???

Possible Merger of Polo Resources Limited and Caledon Resources plc

Summary

The Boards of Polo and Caledon have reached an in principle understanding regarding a potential combination of the two companies

If it proceeds, Polo will make an all share offer for the entire issued and to be issued share capital of Caledon at an exchange ratio of 11.4 Polo Shares for every Caledon Share

The Possible Offer is subject to the waivable pre-conditions set out below and is expected to be effected by way of a scheme of arrangement by Caledon

If it proceeds, the merger would create a coal-focused natural resources company with investments in geographically diverse exploration and development projects and direct exposure to current high coking coal prices through the producing Cook mine

Under the terms of the Possible Offer and subject to a number of pre-conditions, Polo would be prepared to make an all share offer for the entire issued and to be issued share capital of Caledon at an exchange ratio of 11.4 Polo Shares for every Caledon Share. Based on the exchange ratio and the closing price of Polo Shares on AIM of 5.40 pence on 26 April 2010, the implied offer price for each Caledon Share would be 61.56 pence. This represents a premium of 14.53 per cent to the closing price of Caledon Shares on AIM on 26 April 2010 and 12.77 per cent to the volume weighted average price of Caledon Shares on AIM for the 20-trading day period ending on 26 April 2010."

am i right in my maths?
1 x CDN @53.25p divided by 11.4 will give me a price for 1 POL share[=4.67p]
if i held 1 x CDN then i would 'hold' 11.4 x POL[assuming merger takes place] and in effect I would have 'paid' 4.67 each share which at market value [currently 5p] would mean I could make .33p per share profit[less costs].

I ask because i hold POL and wondering if better to top up with CDN and hope the POL/CDN merger goes ahead [technically a gamble rather than an investment]or just buy POL striaghtout .
I am holding POL because of their % holding in EXT/KAH rather than their coal prospects, however a POL/CDN merger would derisk the coal side of things a little and may tempt me to top a little.

Anyone care to comment
Alex

fine as long as POL sp does not fall.

Why not just try & sell CDN at 59/60p & then you have the cash to do what you want. If the merger doesn't go ahead, topping up on either will be a loss making situation in the short term.

From last week's Shares Mag:
"The Australian coal producer is in merger talks with mining investor Polo Resources (POL:AIM). Investors should keep buying Caledon (CDN:AIM), first flagged at 33p (Shares 17 Dec '09) after talks understood to be with Indian energy groups collapsed, as we believe the combined entity looks attractive. The deal, unveiled on Tuesday (27 Apr), would solve a financing issue where Caledon has 18 million of convertible loans expiring on 5 July. Polo says it will pay 11.4 of its shares for each Caledon share, valuing the latter at 61.56p. London and Toronto-listed Polo could sell investments to support coal activities, including a 9.3% stake in uranium group Extract Resources, worth A$166 million at the time of writing. This would help with the A$400 million development costs for Caledon's Minyango project. A merger would add coal interests in Mongolia to the group with significant upside potential. Should the merger not be completed by 5 July or scrapped, Polo has still agreed to lend Caledon the money to cover the loan notes. (DC)"

RNS offer talks off sp sliding.

StockMarketWire.com
"Caledon Resources has jointly agreed with Polo Resources to terminate merger discussions announced on 27 April.

Caledon said due to recent market volatility, the parties had been unable to reach mutually agreeable terms for any such merger.

Caledon said it had raised 3.3m through the private placement of 11 million new shares with Polo.

The proceeds will be used to provide additional working capital."

StockMarketWire.com
"Caledon Resources placing raises 2.13m"

pile in these tomorrow if you get chance, looks very much like a bid leaked late friday. Check out the volume and sudden move on fridays chart. Some say minimum 50p.

Any more info on bid rumour????

Harry are you having a laugh!!
The market makers are trying to make fools out of small punters like you.
There cannot be a bid cos Dattles would block and move and anyway who would want it. Production figures have always disapointed and the new super tax of coal profits and negative too.
Leave well alone until they go back to sub 15p which could come in weeks!! imho

Just as note of caution with CDN, it looks like it is going to be removed from the list of ISA stocks. If that happens, your broker will remove your holding from your ISA account and put it into your dealing account, with the result that any profit becomes taxable and also that amount of your annual allowance for an ISA account is lost.