THE WATERBERG COAL COMPANY LTD - Business update and further cautionary announcement

Business update and further cautionary announcement

The Waterberg Coal Company Limited
(Incorporated in Australia)
(Registration number ABN 64 065 480 453)
ASX: WCC | JSE: WCC | ISIN: AU000000WCC9
(“WCC” or “the Company”)


BUSINESS UPDATE AND FURTHER CAUTIONARY ANNOUNCEMENT

In accordance with JSE listing requirements, shareholders are referred to the announcement dated 31
October 2014 (“the 31 October Announcement”) and are advised of the following:

1.     The Eskom Project

       As set out in the September 2014 Quarterly Report, (and released to the market on 31 October
       2014) discussions with Eskom remain ongoing to resolve the outstanding requirements in order to
       advance the Coal Supply Agreement (“CSA”) discussions. These outstanding requirements include
       coal specification finalisation, final pricing, delivery dates and the provision to Eskom of a
       satisfactory due diligence report on the DFS. The discussions with Eskom are regular and ongoing
       and WCC seeks to resolve all outstanding requirements early in 2015.

2.     The Convertible Secured Facility (“Facility”)

       As set out in the 31 October Announcement, the Facility has been extended on an on-demand
       basis. The revised balance of the Facility as at 17 October 2014, including accumulated interest, is
       A$39.3m.

3.     The Export Project - Definitive Feasibility Study (“DFS”)

       As previously advised in the September 2014 Quarterly Report, Ardbel were commissioned to
       produce a DFS on the viability of a standalone Export Project to be located in the south of the
       Waterberg Coal Project (“WCP”) area. Stage I of the Export Project anticipates the build up to 2
       million tonnes per annum of export product; with first coal to be produced during the 1st quarter
       2016. The DFS on the Export Project has been drafted and is currently the subject of review. A
       proposed Stage II anticipates the build-up of export coal product to approximately 4 million tonnes
       per annum by 2022. The abbreviated period to complete this study accrues from the significant
       database and work product that was generated from the Eskom Project DFS. Additional work has
       been carried out with respect to logistics (including rail), coal product off-take arrangements and
       water.

       Notwithstanding the compilation of the DFS, the project team in conjunction with ARDBEL continue
       to look at opportunities for “optimisation” with a view to further enhancing the overall projects
       bankability and projects economics.

       With a draft of the DFS for a stand-alone Export Project on hand; the WCP partners are in
       discussions with certain Banks with respect to funding arrangements for the proposed Export Project
       development. Pursuant to the aforementioned discussions, the Snowden Group has been
       commissioned as Independent Technical Experts to produce a due diligence report for the purposes
       of Bank funding for the project’s development.

4.     Further cautionary announcements

       Shareholders are advised to continue to exercise caution when trading in the Company’s securities
       until further announcements in regard to the above is made.




Stephen Miller
Director

The Waterberg Coal Company Limited
12 December 2014


JSE Sponsor
The Standard Bank of South Africa Limited

Registered office:
Level 2, 1 Walker Avenue West Perth, Western Australia 6005
Australia
Tel:+61 8 9485 0888
Fax: +61 8 9485 0077

South African office:
Level 1, The Place,
1 Sandton Dr
Sandton, 2146
South Africa

Tel: +27 10 594 2240
Fax: +27 10 594 2253


Contact:
Mr Stephen Miller
Executive Director/CEO

Or

Investor relations in South Africa:
Bruce Tinney
+27 (83) 408 3028

E-mail:
info@waterbergcoal.com.au


Directors:
Dr Mathews Phosa (Chairman)
Stephen Miller
(Executive Director and CEO)
Lee Boyd
(Director and Company Secretary)

Date: 12/12/2014 01:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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