Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Continental Coal To Expand Shareholder Base With Listing On Johannesburg Main Board

Continental Coal (ASX:CCC) is looking to tap into the strategic investor base in South Africa with a proposed listing of its shares on the Johannesburg Stock Exchange.

The JSE is ranked 20th in the world by market capitalisation.

Continental recently achieved a significant milestone of generating free cash flow from its Vlakvarkfontein coal mine, having registered third successive year of record run-of-mine production.

A South African listing for Continental, will not only facilitate a broader shareholder base, but also raise its growth profile in the region as it develops other coal projects, such as the De Wittekrans Mine.

Continental's chief executive officer, Don Turvey said, "Being listed in the JSE is an important milestone for Continental, not only because it links us directly to the financial markets in South Africa, but also allows stakeholders in our business to participate in the growth of the Company."

He added that the recent successes of thermal coal companies listed on the South African stock exchange demonstrated the level of support and recognition of strength of South Africa's coal sector.

The company has already appointed Investec Bank as sponsor and financial advisor for the proposed listing.

The listing is scheduled for completion during the fourth quarter of 2013 but is subject to the release of an independent competent persons report on Continental's mines and development as well as other regulatory approvals.

The Vlakvarkfontein mine has been a stunning success for Continental Coal, which holds a 60% interest in the Ntshovelo Mining Resources joint venture that operates the mine.

ROM coal production for the 2013 financial year is expected to be 1.5 million tonnes, up 23% from the previous year while thermal coal sales are forecast to be up 5% to 1.3Mt.

This will likely generate revenue of ZAR244 million (A$26.67 million), up 10% over the previous year, and a 50% increase in gross operating profit to ZAR80 million.

The free cash flows also come at an opportune time, as it progresses discussions on strategic partnerships and offtake agreement for the De Wiitekrans mine, Continental's fourth coal project.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.