Beacon Hill price fails to track successes
Mark Mentiplay, 30th Apr 2012
LONDON, Apr 30 – The first shipment of coking coal from Beacon Hill Resources’ Minas Moatize coal mine in Mozambique is planned for the middle of this year.
Mining from Upper Chipanga pit began recently for the production of a high margin hard coking coal product and a just released definitive feasibility study shows the project has compelling economics for mine expansion for a pre-tax NPV of $US662M.
However, this and other recent advances on Beacon Hill’s horizon have done nothing for the share price, which has taken a tumble in recent weeks.
Chairman Justin Lewis says recent months have seen the company grow into a significant Mozambican coal producer and developer in one of the world’s most exciting developing coking coal regions. Recent developments have seen the group begin coking coal production, execute a valuable coal marketing agreement and $US20M debt facility with the Vitol Group, the world’s largest private energy trading company, and the completion of a DFS, which shows the strong economics of the Minas Moatize project.
“The recent share price performance does not reflect the true value of the group. The board knows of no reason for this decline over recent weeks, as we continue to make strong progress with the expansion and ramp up of production at Minas Moatize. In addition, the group is also poised to begin exploration at the prospective Changara coal project, which at 70 times the size of Minas Moatize provides the potential for significant upside within the Tete Province of Mozambique,” Lewis said.
Minas Moatize has current JORC-compliant mineable reserves of 42.65Mt, including a marketable reserve of 23.45Mt, of which at least 8.72Mt is coking coal.
Its March 2012 quarter was hit by significant rainfall, which saw production fall to 29,235t from the previous month’s 49,288t, but saleable coal was up from 13,741t to 21,952t. Beacon Hill remains on track to produce and export about 100,000t of coking coal in calendar 2012.
The recent DFS for Minas Moatize envisages a 4Mtpa ROM operation producing an average 2.2Mtpa of saleable coking and thermal coal during its mine life using a 13% discount rate, for a pre-tax NPV of $662M and a post-tax NPV of $428M.
Also in the April 18 - 24, 2012 edition
- AFRICA
- Canyon in on ground floor
- Galileo stuns market with resource
- ASIA DESK
- Tavan Tolgoi float now the bellwether
- CHINA
- China only ‘half built’
- ENGINEERING
- Engineering specialists combine
- EUROPE
- Counting Greek and Romanian chickens
- EVENTS
- Follow the money!
- EXPLORATION
- Looks like a turtle, but Helix sees beauty emerging
- SAM signs useful on road to gold production
- Talga's change of place
- Widubosh a puzzle worth solving
- FINANCE
- BMO takes fresh, positive view on base metals
- Copper faces flat road ahead
- Lea sees next Polaris on his radar
- FORUM
- Missing something
- West End feedback: Try sometimes
- FROM THE CAPITAL
- Missed timelines hit investment returns
- GOLD
- Gold’s new world
- One door leads to another
- INSIGHT
- Auto-mining's missing pieces
- INTERCEPTS
- Agnico makes a strong start to 2012
- Alacer Gold ups production guidance
- Alcyone gets bigger at Texas
- Altura doubles Kalimantan coal ground
- AME targets new Mali permit
- Andy Well first gold mid-2013
- Anglo American concludes asset sale
- Aquarius raps unions, government
- Atlas weathers the storm
- Atlas, QR link to offer Pilbara rail solution
- Atlas, Venturex on the same road
- Atlatsa, a new name for Anooraq
- Australia opening Woomera area to explorers
- Bauba lifts Bushveld PGM figures
- Beadell’s Brazil plant on schedule
- Beowulf faces reindeer objections
- BGC wins Roy Hill projects
- Boikarabelo coal mine moves closer
- Cashed-up Minotaur looks for ventures
- Cat on track for more records
- Centaurus sews up deal ahead of Jambreiro iron ore production
- Central Rand upgrade lifts production
- Chatree keeps Kingsgate on track
- Coalspur ups Vista coal production target
- Continental extends Ferreira coal production
- Copper Fox works on resource update
- Court date set for Flinders impasse
- CuDeco moves fast at Rockland
- Cuesta heads for ASX trade
- Delays force SACMH cutbacks
- Delays hit Molyhil study
- Drilling campaigns to start on Kalimantan
- Eastplats turning the Croc around
- Energio stays on resource schedule
- Environmental green light for Parker Range iron ore project
- Ferrexpo builds rail fleet
- First Vele coal leaves for port
- Fortescue production down, but plenty of upside
- Glass Earth chases another Macraes
- Glencore renews revolving credit facilities
- Globe on track with Malawi niobium study
- Gold One tackles labour, safety issues
- Golden Phoenix down but not out
- Government ownership now part of the Argentinian resources landscape
- Government, companies agree terms on Mbalam project
- GWR gets Wiluna West approval
- Herencia sets its succession plan
- Layne faces corruption penalties
- Leighton group wins Saudi bauxite job
- Lihir drags Newcrest production guidance
- Maiden production targets for Venturex’ Pilbara project
- Maiden resource for Uranex Tanzanian uranium project
- Matsa close to Norseman JV
- Metminco lifts Peru project resources
- Minco buys into Canadian properties
- More ore for Altona
- Mt Forrest iron ore project production in 2014
- Mt Gordon gives ABM a lift
- Mungana pushes mine studies
- Mutiny targets new year Gullewa gold start
- Ncondezi coal feasibility on track
- New bid emerges for Ezulwini
- New board for African Eagle
- New extraction technology may make marginal operations profitable
- New gold discovery in Azerbaijan
- New man heads Gryphon project
- New York fund comes waltzing Matilda
- Newcrest names Telfer EPC contractor
- Newmont threatens to dump big Peruvian gold mine
- Nord Gold bumps its gold reserves
- Northern Iron sets records at Norway mine
- Northern Star pushes aggressive Paulsens program
- One up-three down for Norilsk
- OZ splashes to Prominent performance
- PanAust steps up in Laos
- Panterra to begin tailings treatment
- Parties await a Mt Jukes attack plan
- Pesky taxes upset good quarter for Zimplats
- Phosphate miner finds a Russian buyer
- Plant changes cut Talvivaara production
- Polyus to sell Romanian projects
- Positive signs for Kentor’s Andash project
- Positive study boosts Metaliko
- Problems hamper Siberian mine
- Rain pours on Newcrest’s parade
- Rains dampen Mundo’s quarter
- Randgold hands over Mali food aid
- Rare profit for troubled UK coal firm
- Regency gets good news at Mambare
- Residents drop Buller coal objections
- Rio, Chinalco form Simandou team
- Royalty buy-out ahead of mine start
- SHM widens Chilean holdings
- Signature begins Ghana trial mining
- Smart shipping helps Western Areas record
- South Boulder finds more Eritrean potash
- South Gobi coal project in Mongolia for mid-year start
- Stars favourable for Aries prospect
- State cash funds Marathon project search
- Strong start for Sulawesi mine
- Study backs Universal’s coal development
- Sumatra coal study planned
- Sundance closer to West African iron ore mine
- Sylvania stays positive in time of troubles
- Taurus becomes substantial Ampella shareholder
- Tiger makes a fast start
- Top level changes at Alacer Gold
- Trouble at mill for Evolution Mining
- US listing for Nautilus
- Vale lodges $902M tax assessment bond
- Vendors want to buy back their rare earth projects
- Venturex nears feasibility completion
- Wanted: partner for 1.8bt coal project
- WDS fights contract termination
- Westgold grabs historic Fingall Deeps
- Wolf completes big tungsten off-take/loan deal
- WSA sets 10-year target at higher production rate
- WTR set to move on massive sands
- Yet another plan to streamline the approval process
- Zimbabwe mine revival moves closer
- Zinc producer holds the line
- ZYL picks Mbila financiers
- MINING INTELLIGENCE
- The lucky country, for now
- MINING IT
- Atlas Copco taps the app
- Gemcom releases Surpac 6.3
- Minemax software reboot built on new architecture
- MineRP promises smooth Mine2-4D transition
- Oracle improves enterprise systems
- Researcher says optimisation challenge solved
- PEOPLE
- People on the move: Wild Acre, Focus Minerals
- UnCUT
- Avoiding collision avoidance questions … and a gold road
- VIEW FROM THE WEST END
- Private lives
