Global Coal Management Plc (formerly Asia Energy PLC)



Overview

GCM Resources plc (GCM) is a London-based resource exploration and development company. Its principal asset is its undeveloped coal deposit in the Phulbari region of Bangladesh, the development of which is awaiting approval from the Government of Bangladesh. It also has investments in other companies with mining interests. The company's shares are quoted on the Alternative Investment Market (AIM). (Ticker code: GCM).

The Phulbari Coal Project is a substantial, world class coal resource that will support a long life, low cost mining operation. It is the only such deposit in Bangladesh that has been subjected to a full Feasibility Study and Environmental and Social Impact Assessment prepared to international standards. In partnership with the Bangladesh Government, civil society and the community, GCM is committed to developing the Phulbari Coal Project to the highest social and environmental standards. By doing this, GCM seeks to maximise the benefits of the Project for both the Company’s shareholders and the people of Bangladesh.

The Company (GCM) under its former name, Asia Energy PLC, was incorporated in England and Wales as a public limited company on 26 September 2003. Asia Energy PLC was admitted to the Alternative Investment Market (AIM) of the London Stock Exchange on 19 April 2004. Through seed capital raising and the subsequent placement of shares, some £14 million was raised.

In November 2005, following submission to the Government of Bangladesh of the Phulbari Coal Project's Feasibility Study and Scheme of Development, the Company placed an additional 7 million shares and raised a further £33 million.

GCM actively reviews investment opportunities in order to broaden its global investment portfolio.

Coal Project facts

■ Energy security and diversity – The Project has a unique role to play in addressing the country’s electricity shortfall as its development will provide the basis for a step change in the country’s electricity generating capacity.
■Regional development – The Project will provide 17,000 jobs (direct and indirect). In addition the development of new industries using the industrial mineral co-products from the mine will create thousands of more jobs. The living conditions of all affected people will be improved and their livelihoods will be restored and in many cases improved. As a result of year round irrigation, improved water quality, improved inputs and improved farming practices it will be possible to produce three crops per year with higher yields than at present.
■Huge economic impact – Phulbari will contribute 1% to Bangladesh’s GDP each year and pay US$7.0 billion in taxes, royalties and service charges to the Government over the life of the Project. The replacement of high sulphur imported coals and other hydrocarbons will have a positive effect on balance of payments and air quality.

In partnership with the Bangladesh Government, civil society and the community, GCM is committed to developing the Phulbari Coal Project to the highest national and international social and environmental standards. By doing this, GCM seeks to maximise the benefits of the Project for both the company’s shareholders and the people of Bangladesh.

Background

Bangladesh is one of the most densely populated countries in the world with some 162 million people living in an area two thirds the size of the United Kingdom or about the size of New York State. Less than one third of its population live in cities while the majority live in rural areas relying on a predominantly subsistence lifestyle. GDP per capita is around US$1,700 (ppp) per annum compared with a world average of US$10,500. Less than half the population have access to electricity. Bangladesh is a country of enormous potential. It has the eighth largest work force in the world and is included in the “Next Eleven” countries that, after the BRICs (Brazil, Russia, India, and China), were identified by Goldman Sachs as having the potential to become the world’s largest economies in the 21st century. It has enjoyed more than 6% economic growth in real terms over the last five years as well as substantial improvements in measures of human development. For example, between 1980 and 2006 life expectancy has improved from 48 years to 63 years and literacy rates have improved from 29% to 53%.

Bangladesh is one of the most climate vulnerable countries in the world with a significant proportion of the population living in remote or ecologically fragile areas such as river islands or cyclone prone coastal areas. Two thirds of the country is less than five metres above sea level making it vulnerable to the predicted effects of climate change.

Although Bangladesh is vulnerable to the effects of climate change, it is not itself a significant emitter of carbon dioxide. Per capita carbon dioxide emissions (0.3t/capita) are substantially below other countries in the region (Pakistan 0.9t/capita, India 1.4t/capita, China 4.9t/capita) which themselves are substantially less than emissions from developed countries (UK 8.9t/capita, USA 18.9t/capita). Even with the addition of the 4,000MW of electricity capacity which Phulbari coal could support, Bangladesh would still be one of the lowest emitters of carbon dioxide in the world, substantially less per capita than its neighbouring countries.


http://www.gcmplc.com/

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As 90% of stocks at the moment ! pejorative

yep smiler nuts market eh? have nibbled at this in 3 lots 90p, 79p and lastly 69p. nothing big just slowly building my stake back up to benefit from the next rise (it will come back...)

how's flasher?

Still in HBOS finger ready

RNS Number : 6963D
GCM Resources PLC
18 September 2008



GCM RESOURCES PLC

(AIM: GCM)




PRELIMINARY ANNOUNCEMENT OF THE RESULTS

FOR THE YEAR ENDED 30 JUNE 2008




GCM Resources (GCM) is committed to the Phulbari Coal Project in Bangladesh, the development of which is awaiting approval from the Bangladeshi Government. Over the year, the draft Coal Policy, which will set the direction for the country's coal sector development, continued to be reviewed by relevant departments of the Bangladeshi Government. Given the importance of this in the development of the Bangladeshi economy, the agreement of the draft Coal Policy remains high on the political agenda.




While GCM continues to work with the Government and people of Bangladesh to prepare for the development phase of the Phulbari Coal Project, the Company continues to review investments in other related opportunities around the world. In addition to the investment in Coal of Africa which was acquired in June 2007, GCM now also has investments in Aura Energy Ltd and Regent Pacific Group.




Through all its investments, GCM aims to help bring about further economic and social development for all stakeholders. It aims to do this in a safe and sustainable way, paying full regard to the interests and concerns of local communities and the environment in which it operates.




KEY DEVELOPMENTS




GCM continued to work closely with all stakeholders as the Company waits to proceed with the development stage of the Phulbari Coal Project;




GCM increased its strategic investment in Peoples Telecommunications and Information Services Ltd (PeoplesTel), now holding 37% of the enlarged capital of the company, up from 26.5% ;




GCM accepted Regent Pacific Group Ltd's (RPG) share offer for the whole share capital of CCEC Ltd in respect of its 6% holding in CCEC Ltd. GCM now holds 2% of RPG;




GCM purchased 13% of the capital of Aura Energy Ltd (Aura). Aura has uranium exploration interests in Sweden, West Africa and Australia. The Aura / GCM Africa Alliance grew as it was granted three uranium exploration licence areas in Mauritania. There are 11 further licences pending in Mauritania and three in Niger;




GCM's investment in Coal of Africa Ltd (previously GVM Metals) has substantially increased in value from a cost of 4.8 million in December 2006;




Polo Resources acquired 29.72% of the share capital of GCM on 25 March 2008 as it expanded its interests in strategically located coal projects;




In December 2007 the Company changed its name to GCM Resources plc to remain consistent with the Company's strategy and corporate branding.




Transition to International Financial Reporting Standards (IFRS)




GCM is reporting preliminary results for the year ended 30 June 2008 in accordance with International Financial Reporting Standards (IFRS) for the first time and so the results for the year ended 30 June 2007 in this report are also reported in accordance with IFRS. The impact of the transition from UK GAAP to IFRS was detailed in the 2007 Annual Report.




Results




The Group made a profit of 864,000 after tax for the twelve months to 30 June 2008 (June 2007: loss of 923,000). The profit was primarily due to the gain made on disposal of GCM's interest in CCEC Ltd, when Regent Pacific Group acquired the whole share capital of CCEC Ltd.




Exploration expenditure relating to the Phulbari Coal Project amounted to 2,494,000 for the twelve months to 30 June 2008 (June 2007: 3,286,000).




The Income Statements, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages.


http://moneyam.uk-wire.com/cgi-bin/articles/200809180700086963D.html

Everything is going up but not GCM.

jfhfhfy8y78yyhfhf98g

59p now and still going down...investment in Bangladesh is very risky especially when corruption is rampant.

yep A bargain at this price !! : )))) money to be made Love it !!

You have been saying that when it was 100p. :))))

Bangladesh has been ranked as the most corrupt country on earth in the latest list of corrupt nations published by Transparency International.
The Berlin-based anti-corruption watchdog said Bangladesh shares the top spot with the central African country of Chad.

The government has not yet commented on the latest corruption list.

This is the fifth year in a row that Bangladesh has topped the corruption perception index.

Last year, the Caribbean country, Haiti, ranked top with Bangladesh.

The survey relates to perceptions of the degree of corruption in different countries, as seen by business people, academics and risk analysts.

And >>>> Fact IS I have made money here and hope to again so find some other thread to post on if you have Know interest in this Co !

Sorry, smiley...I am not going to ramp a company if credit is not due. As you can see, this is reflected by the chart. And I have money here, too

A lot of charts are down ... yawn... and I guess you should have sold like me at 300p !! and got back in at 100p !!! still think in time you could see a return at this price !!

Some valid points !

This company has current market investments of:

Coal of Africa, 40.6mln,
Region Pacific 2.9mln,
Peoplstel 4.7mln,
Aura Energy 0.6mln

This equates to 48mln at todays market prices. Divide this by the number of shares in issue for GCM (51mln) and you get 94p per share!

Currently therefore at a discount -37% to current market investments.

Clearly this doesnt take into account the cash balance (10.7mln) , last time i checked NOR the 22m expenditure on Phulbari and ZERO ascribed to value of the multi billion dollar Phulbari coal field.


Add on cash (10.7mln or 20p/share) and you get 1.14p per share or a -48% discount to the current value of cash plus investments.

A huge discount to NAV and ZERO for Phulbari.

This valuation anomoly will not exist for much longer and once markets normalise, this discount will narrow by a considerable margin, with or without Phulbari.

42.5p now.

32p...looks like it will go to 10p at this rate.

No Gas for Bangladesh Right Now: Myanmar

Wednesday, 10.08.2008, 07:27pm (GMT)


Yangon on Wednesday informed Dhaka that it did not have enough gas at the moment for supply to Bangladesh for the installation of a fertiliser plant or other uses.

If Bangladesh wants to import gas from Myanmar in future, it will need to compete with other countries.

Mayanmars energy minister Lun Thi informed M Tamim, the chief advisers special assistant, of the matter at a meeting in Tamims office.

Lun Thi said Myanmars existing gas reserve near Bangladesh had already been sold out to Thailand and China.

This has dealt a blow to Bangladeshs plan to meet its growing demand for gas with import from the neighbour.

The president, Iajuddin Ahmed, on the day expressed his keen interest in importing gas from Myanmar for fertiliser production for re-export as the vice-chairman of the Myanmar State Peace and Development Council, vice-senior general Maung Aye made a goodwill call on him at Bangabhaban.

The head of the army-controlled interim government, Fakhruddin Ahmed, on Tuesday requested Myanmar to sell gas to Bangladesh through pipeline while he had official talks with Maung Aye.

Referring to his meeting with the Myanmar energy minister, Tamim said, He [Lun Thi] informed us that Myanmar does not have enough gas now for supply to Bangladesh as it has made agreements with China and Thailand for gas supply from the exiting reserve.

The minister, however, said they were expecting to discover gas in two blocks near Bangladesh by 2008 and Bangladesh could secure gas from that reserve in competition with other countries.

Regarding the Myanmar-Bangladesh-India gas pipeline project, which has now been stalled, the Myanmar energy minister said the possibility of such a pipeline was not on board as they had already sold out the gas, which was supposed to be supplied to India, to China after the talks with the countries failed.

Tamim said Lun Thi had assured him that Yangon would not conduct gas exploratory work in the disputed maritime boundary area until the issue was settled.

The minister responded positively to Dhakas proposal for the installation of a hydropower plant in the Rakhain state in Myanmar to bring electricity to Bangladesh, said Tamim.

Tamim told reporters Lun Thi would talk with the Myanmars electric power ministry so that a Bangladesh delegation could visit the country for an initial study.

Myanmar earlier proposed that Bangladesh should install the plant on its own investment and give Myanmar 30 per cent of the power from the plant and take the remaining 70 per cent for its use.

Iajuddin, meanwhile, expressed his satisfaction with the existing excellent relations between Bangladesh and Myanmar.

He said this as Maung Aye made a goodwill call on him at Bangabhaban. Iajuddin and Maung Aye assured each other of all-out cooperation to mutual benefits.

On the second day of his three-day visit to Bangladesh, Maung Aye began his day by paying tribute to the martyrs of the war of independence at the National Martyrs Memorial at Savar.

He placed flowers, planted a sapling and wrote a note on the visitors book at the place.

Maung Aye then made a courtesy call on the army chief, general Moeen U Ahmed, in the army headquarters. Maung Aye was apprised of different activities of the Bangladesh army.

The army chief, principal staff officers of the army headquarters and the entourage of the Myanmar general attended.

Maung Aye later visited the Military Institute of Science and Technology in the Mirpur cantonment. He signed the visitors book.

The visiting Myanmar construction minister major general Saw Tun on Wednesday discussed with the communications adviser, Ghulam Quader, the Bangladesh proposal for a survey on the proposed direct road link between the two neighbours.

The Myanmar construction minister showed a positive attitude to the Bangladesh-Myanmar link road project. We have placed our proposal for a survey on the proposed 25om road with 23 kilometres spanning the Myanmar territory, Quader said after the meeting.

A six-member delegation of Myanmar accompanying Maung Aye, visited Beximco Pharma at Tongi in the morning.

The delegation, led by Myanmars national planning and economic development minister U Soe Tha and commerce minister Grig Gen Tin Naing Thein, visited the production area of the factory.

October 10, 2008


Bangladesh draft coal policy returned to the ministry
The New Nation reported that Bangladesh council of advisers asked the Energy Ministry to place the draft National Coal Policy again after further scrutiny for final approval. The report said that the draft national coal policy failed to get final nod at the meeting as the advisers were not unanimous in their views on different vital issues.

Dr Hossain Zillur Rahman Commerce Adviseer while briefing reporters on the outcome of the maiden meeting of the Council of Advisers in the port city held at the Chittagong Circuit House said that "We have discussed in detail the draft National Coal Policy, but we could not arrive at a final decision on it. He added that the advisers expressed themselves in favor of further examination of the draft national coal policy before final approval by the council.

Meanwhile, highly placed sources in the Energy Ministry said that the council of advisers at the meeting held detailed discussions on the royalty issues, licenses for exploration or extraction from coal fields, land, water and environmental issues before and after extraction.

The draft national coal policy has discouraged export of coal considering the demand for energy in the country. It has also suggested awarding exploration and development license of any coalfield to only state run organization which will be able to embark on JV through competitive bidding. The draft policy also recommended formation of a separate state run organization to be styled Khani Bangla to oversee the coal and mine related activities. It also suggested constitution of a coal sector development committee to 6 the royalty rate.

As per the draft coal policy, licenses for exploration or extraction from any coal field will be awarded through open tenders, whereas the existing rules say that the licenses would be awarded on first come first served basis. On royalty rate issue, the mining rules said that the royalty on coal extraction would be 6% for open pit mines and 5% for underground mines, whereas the policy says that a proposed coal sector development committee will get 6% as the royalty.

http://www.steelguru.com/news/index/2008/08/17/NTkwOTg%3D/Bangladesh_draft_coal_policy_returned_to_the_ministry.html

Energy Issues for Election Agenda
Saleque Sufi
Sunday, 10.19.2008, 08:41am (GMT)


It is now more or less certain Care Taker Government has become desperate to accomplish the remainder of its road map to conduct national election on December 18th 2008 ,which in their vision will be free , fair and credible to all at home at abroad. If election is held and any party dare to boycott despite of having more authentic voter list and much better law and order situation that politics of that party will put them in jeopardy. Election fever is already gripping the nation. State of emergency is sufficiently relaxed and can be still more relaxed to encourage more and more voters to exercise their voting rights in increased safety. But mere existence of emergency in some form may not harm free and fair election. Possibly the corrupt and rowdy political elements to fish in muddy water are pressing major political parties to stress on lifting emergency. Can I ask sensible section of society to imagine what happens if this government fail to control law and order situation if emergency is lifted altogether now? Will the election in chaos and turmoil be more credible? The terrorists and trouble mongers will make situation messy and the situation will only pave the way for unconstitutional group to grab power. That will be the last nail on the coffin.



True the nation suffered from various crisis due to incompetence and failure of the government in certain areas, true the government failed to punish some major criminals and corrupt person, true it wasted time in plus minus issues , but even the bitterest critic of the is government must appreciate that the law and order situation remained much better after 1/11 than any other time in the recent past. Government handled energy crunch, food crisis, and several climatic disasters much better than before. Let government leave the issue of two major political leaders two ex lady Prime Ministers to be decided in by independent judiciary. They have definitely not done greater crime than shameless, corrupt autocrat or inhuman razakars. If noted Razakars having arrest warrant can sit with the head of the government, if Bishwa Behaya can continuously dare to give lessons to the nation we believe government should not interfere or dictate in the judicial process of various cases involving the ladies. Let two ladies fight the cases in the court of law. Till their cases are resolved in the highest court they must not be barred to take part in the election. Democracy is the rule of majority. If people vote any party or alliance led by one of the ladies to power, why individual or group can not accept it? No one is angel here. Everyone is evil to some extent in our society.



If government can take care of other issues and can relax emergency to the extent that constructive political process leading to election is not impeded and if two ladies are not deliberately targeted to keep them out of politics it can guaranteed that all major parties will go for election to keep their existence.



Now given the very critical energy scenario, extremely vulnerable food security, global economic depression the party or group forming the future government will have to encounter massive challenge. We hope that apart from taking all out preparation for election the major parties and alliances are also preparing their election agenda addressing issues which must get priority attention. These must be let out to voters and may be discussed and debated in electronic media.



If all issues the nation is facing is categorised on the basis of priority present uncertain energy situation will invariably rank the top. Diabolic energy situation is creating impediment to food production due to fertilizer, diesel and power crisis. Massive deficit of power in national power grid has stalled industrial development. It has also impeded the operation of existing industries. There may be serious adverse impact on export trade. Investment both from foreign source and local has hit rock bottom. Bangladesh will be in serious economic crisis soon if the present global economic crisis prolongs. The alarming decline in investment despite of relative political calm and absence of usual massive corruption may also be attributed to persistent unfriendly investment policy, bureaucratic tangles, diabolic energy situation and lack of enabling infrastructures. Advisors of the government have given lot of lip services but achieved very little. Taking all these into consideration any party of group aspiring to form the government in immediate future must do lot of home works as the expectation of the people will be very high on the next government. There task is well cut out. At least the first three years of the next government will see free difficult time.



If we look at energy situation we will find our present effective power generation can not even meet 60% of our actual demand. Production and supply of natural gas which dominates the fuel mix almost exclusively is also in very bad shape. New exploration for gas or further development of existing reserve is also suffering from our managerial and efficiency crisis. Our own failure has created situation where IOCs have taken drivers seat for upstream petroleum operation. One of the IOC Cairn Energy is trying to exploit our situation making claims outside the signed PSC. Wonder how IOC can threaten a sovereign Government and Petrobangla that they wont be going for further exploration at Magnama and Hatiya if they are not given additional incentive through increasing price of their share of Gas beyond the agreed Ceiling price of GPSA. Another IOC coolly took over major share of gas market through making their planted agents in Petrobangla frustrate the development efforts of major national gas producers. Intelligent people in EMRD and Petrobangla made hay while the sun shined. But nation is now paying through the nose. Another IOC which won exploration right of so called marginal fields managed to escape paying compensation for the damage to gas resources emanating from repeated blow out during exploration.



Government also failed to take appropriate decision for exploiting the substantial coal resource in the most economic way to create expected diversity in the fuel mix for power generation. In about two years the Coal policy could not be finalised. The issue of Asia Energy in Phulbari remains pending. A very ill motivated group with cheap political slogan has frustrated nations dream of exploring significant coal and produce coal base power to comfort power crisis. Their efforts have directly helped the coal mafias who smuggle inferior quality dirty coal from India to cause environmental nuisance. This so called patriotic force is acting as agent of imperialist neighbour as they are also opposing our exploration efforts for petroleum in deep water of the Bay of Bengal. The government also knowingly or unintentionally played to hands of the coal mafias by not adopting investment friendly coal policy and not commencing coal mining in the most economic way.



So the situation is really alarming. No new job opportunities are being created due to lack of investment .Educated youth and our unskilled labour force are increasingly getting unemployed .The employment market in foreign countries is also getting shrieked. The frustrated unemployed youth will be easily induced to drugs and criminal activities. Country will also loose the brilliant sections of the professionals through increasing brain drain.



What should the energy sector out look of the major political parties or election alliances? From deep on the ground level hands on involvement of the author in the energy sector development and operation, crisis management of about three decades the author can make the following recommendations.



Policy Recommendations:



Energy Regulatory Commission act must be amended to establish its authority and Control over all segments of Energy (Coal, Gas, Power, Liquid Petroleum) Exploration, Production, Transmission and marketing. BERC must be manned with competent, honest and efficient professionals of proven track.

BERC must make transparent policies to create level play ground for private and public sector companies so that investors can be attracted to make investment freely.

BERC must be given exclusive to regulate and then deregulate energy pricing after the energy Market achieving competition achieves maturity to absorb market based energy pricing.

Government must not involve in day to day energy business and reduce its role to policy formulation and facilitation of energy companies to run business a in a free transparent energy market. Every Government in the past and the present have burnt their fingers being too much dependent on corrupt inefficient civil and military bureaucracy.

Energy must be kept out of politics. The sector must be declared thrust sector. Hostel trade unionism must come under serious scrutiny. Effective measures must be taken to curb system loss, theft and pilferage of energy.

Pay structure of all energy company must be revised. Higher pay and benefit like that provided to officials of IOCs and IPPs in Bangladesh must be offered to attract and retain goo professionals.

Energy sector works must be treated as emergency services for at least 3 years till the prevailing deficit in power and gas grid is overcome and discipline is completely restored.

Petrobangla, PDB, BPC must be corporatized. There may not be any new corporate body like Coalbangla. Petrobangla must be the lone buyer of gas , gas condensate in a restructured gas market.

All energy companies must act as autonomous entity according to their article of association. The present system of thrusting board members from line ministry and corporation must stop. Board members must be democratically elected by company share holders. Majority government shares in the energy company must be off loaded in phases through local stock exchange. All IOCs an IPPS operating in Bangladesh must also off load part of their shares through local stock exchanges.

Government must adopt investment friendly coal policy and start exploration of coal without unnecessary bothering for myths, propaganda of the vested quarter.

Instead of relying on inexperienced theoreticians government must listen to line professionals and experienced Bangladeshi expatriates working with major energy Companies in developed countries and doing energy research in reputed Universities abroad. Through NRB forum Government must appeal to competent Bangladeshi expatriates to contribute in this time of crisis.

Government must see that a very dynamic reservoir study and management cell in Petrobangla is fully operational which can manage regular 3D seismic survey , bottom hole pressure survey , 4D integrated reservoir management of petroleum resources.

Proper Planning for energy resource development through appropriate exploration policy, depletion policy, and energy utilization priority must be established.

Government must also make comprehensive plan for human resource development for energy sector and help create enabling opportunity for competent professional work without evil influence and their pay and benefits are worthy of their efforts. In other words their must be targets and goal to achieve with provision for reward and punishment for good innovative works and deliberate failures.

24p at the moment...10p getting there very, very fast