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

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.

"The Directors of Caledon note the recent increase in the Company's share price. Since the termination of discussions with Polo Resources Limited on 24 June 2010 the Board has received a number of unsolicited and indicative enquiries from third parties in respect of possible alternative transactions, one of which relates to an indicative offer for the Company. These enquiries are at a very early stage and there is no certainty that an offer for the Company will be forthcoming."

spot on, well leaked. Vol gave it away for one.Try CAD now that another cert.

Well done berty. Good call.

Caledon Resources rejects offer at 68p/share.
http://uk.reuters.com/article/idUKLDE66M1JR20100723