I see in the last quarterly that Vlakvarkfontein is described as providing a strong earnings platform for CCC's thermal coal business. This is a bit of a turn around from when I used to follow CCC closely and the focus was squarely on export thermal coal. I can see now what Unite For Change is getting at with his focus on the "profitable" domestic coal business.
The reason I post is that before Vlakvark was considered to be fairly irrelevant so no one looked too hard at it. Now I'm wonder though, if its the centre of CCC's profitability, how does it work?
We know that CCL only owns 60% and therefore Aussie shareholders only 45%. But what of the other economics. My questions:
1. Does CCL even own 60% or is Vlakvark held through NTshovelo, described in the audited reporting as 50% owned but 60% economic interest.
2. If it is NTshovelo, what does economic interest mean in this instance.
3. Who owns the other 40 or 50% of Vlakvark?
4. What are the terms of the joint venture. In particular what rights does CCC have to net cash flow generated by Vlakvark, if any?
5. And out of historical interest, who payed for the development of Vlakvark? Were the costs shared by the owners. And if so proportionate to their equity interest or economic interest?
CCC Price at posting:
3.6¢ Sentiment: Sell Disclosure: Not Held
