Glyncastle Mining and Resource

Glyncastle Mining and Resource

Glyncastle Plc offers for sale all the shares held in Glyncastle Mining Limited t/a Black Diamond. Glyncastle Mining and its subsidiaries will be sold without debt. The opportunity is to fund the outright purchase or buy as part of a syndicate with the investment managed by Cork Gully LLP and/or another.

Black Diamond’s resource is 973Mt of anthracite and semi-anthracite coals which have wide industrial use throughout the United Kingdom and Europe given their high carbon content and calorific value. The anthracite resource can be readily exploited, as the working licences and infrastructure are already in place. Black Diamond is well placed to become the only producer of high grade anthracite in Europe by 2021. Black Diamond is forecast to generate:

• Revenue of £68.4m pa
• Taxable profit of £41.9m pa
• NPV of £362m before tax
• Tax credits of up to £28m
• Lifetime of the mine 30 years +

The above figures are based on producing initially 500ktpa of anthracite, using double entry shortwall mining and selling to niche anthracite markets where prices are robust. Should all the anthracite be heat treated then Black Diamond would generate:

• Revenue of £180.0m pa
• Taxable profit of £153.5m pa
• NPV of £1.17bn before tax

Black Diamond anthracite has an extremely low ash and high carbon content as compared to overseas anthracite, the mine is capable of producing designer products through sizing, blending and calcination. Through calcination the product becomes almost pure carbon. Hardgrove Grindability Index (HGI) is 55.

The mine management team has over 15 years experience of long/short wall mining in South Wales, UK. The CEO has over 40 years experience in coal mining, 10 of which were in international coal trading. In addition Cork Gully are prepared to manage this project on behalf of investors and to provide all the resources at their disposal including accepting key board positions.

Black Diamond will use shortwall mining as a method of extraction as recommended by international mining consultants, DMT Group to produce over 500ktpa. Black Diamond also has the support of leading geologists, geotechnical and ventilation experts. The mine’s capacity is 1.3Mt pa so the mine will be operating well within capacity. There is a skilled local labour force and a highly developed infrastructure for the distribution of coal. 

Black Diamond is a current trading name for Glyncastle Mining Ltd and Glyncastle Resource Ltd.