Coal of Africa confirms Australian super tax has no effect

Coal of Africa (CZA) issued an RNS this morning confirming that the underlying intention of the Australian resources super tax is the levying of tax on profits arising from the exploitation of non-renewable resources located in Australia. Since the company has no operational projects in Australia, it expects no increased taxation charges resulting from the implementation of the tax. The shares are down 3.5% this morning to 122p. The falls of the last week or so seem overdone given this confirmation and with the Mooiplaats project ramping up production and Vele coming on stream CZA looks a great play for significant earnings growth in 2011.