Coal of Africa narrows interim loss as it looks for further investments

Coal of Africa provided its interim financial statements for the six months to 31 December on Tuesday, continuing its record of no fatalities from the same period in 2015 and no lost time injuries recorded during the year.

The AIM-traded firm posted a decrease in its loss for the period to $12.97m from $14.3m, with the board reporting “consistent progress” in the regulatory requirements for its projects.

Its board said it was continuing to explore opportunities with regard to its acquisition of a cash generating asset.

As at 31 December 2016, the company had cash and cash equivalents of $7m compared to cash and cash equivalents of $19m at 30 June 2016.

“The company is in the process of evaluating a number of opportunities to acquire a cash generating asset which meet CoAL's acquisition criteria,” the board reported.

“We continue to engage with potential funders to ensure any potential opportunity can be appropriately financed. Any purchase of this nature does not confer any certainty of funding for the enlarged group and the company will keep the market informed in a timely manner.

“The company is also aware of the current cash balances and the requirement to fund the last legacy liability in June 2017 and is also in discussions to ensure the payment of this liability can be funded and provide sufficient funding to move forward on the Makhado Project.”