AGM Statement and Trading Update

RNS Number : 7094H

Coalfield Resources PLC

24 June 2013

 



Coalfield Resources plc

("CfR")

AGM Statement and Trading Update

Speaking at today's Annual General Meeting, Coalfield Resources Chairman, Jonson Cox, updated shareholders on the restructuring of the former UK Coal business during 2012 and progress made since the creation of Coalfield Resources plc on 10 December 2012 out of the restructuring.

Mr Cox reminded shareholders that CfR's main asset following the restructuring of the group was its 24.9% shareholding in Harworth Estates Property Group.  From the restructure, CfR retained only a minority interest in UK Coal Mine Holdings Limited. CfR had ceased to be responsible for running the mines, limiting its involvement to a governance role alongside the Employee Benefit Trust which controlled the mining operation.

No economic return had been expected from the mining investment with CfR's interest ranking behind that of the industry wide pension schemes.  The catastrophic fire at Daw Mill which had severely impacted the mining operation confirmed that the decision not to recognise any further value from the mines had been the correct decision to take.

Following the closure of Daw Mill CfR had offered full assistance to the management of UK Coal Mine Holdings as it sought a way forward for the remaining mines and 2,000 workforce.  Mr Cox understood that the discussions over the future for the mines were nearing a potential solution and that it was possible that an announcement could be made by the mining company within the next week.

Mr Cox reminded members that CfR retained certain liabilities from the restructuring in December 2012 which had been due to be met by UK Coal Mine Holdings. These had included professional fees incurred in the 2012 restructuring of c£3.5m. In view of the current difficulties of the mining business, as previously announced, CfR had secured a bank facility to meet and settle these liabilities. The banking facility had been granted on the basis of a limited guarantee to Lloyds from the Company's largest shareholder, the Peel Group, and also on the basis that the Company would carry out an equity fundraising to repay the facility.  Mr Cox confirmed that CfR expects to undertake the fundraising in the next few months. The Peel Group had offered further support to the Company by agreeing, subject to the satisfaction of certain conditions, to underwrite the fundraising.

Mr Cox reported that Harworth Estates (HEL), the principal investment of the Company, which is jointly owned with the industry wide pension funds, owns or manages 30,000 acres across 160 sites and had continued to perform well.

HEL was making good progress across all business divisions in line with the strategy approved at the time of the restructuring. HEL had continued its success in selling land for housing at its Waverley site, between Sheffield and Rotherham, for the next phase of what will eventually be around 3,600 new homes. At the adjacent Advanced Manufacturing Park, Rolls-Royce, Boeing and the University of Sheffield all currently have buildings under construction under the current phase development. Opportunities were being progressed at many of the other sites in the portfolio, and in improving rental returns,  and the board of Harworth Estates were confident of delivering against their business plan.

Jonson Cox concluded by thanking all stakeholders in CfR for their co-operation during 2012 and continued support.

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 Enquiries

Analysts and investors

Jonson Cox

Chairman, Coalfield Resources                                 Tel: [phone]

Jeremy Hague

Finance Director, Coalfield Resources                   Tel: [phone]

Media

Anthony Cardew / Tom Horsman

Cardew Group                                                                   Tel: [phone]

Andrew Mackintosh                                      

Communications Director, Coalfield Resources Tel: [phone]

 

END

 

 

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