JOHANNESBURG (miningweekly.com) - South African coal-mining junior Keaton Energy generated its first cash flow in October 2008, from its Klip colliery.

The Klip colliery, formerly the Klipfontein project, would provide early cash flow to the company for a period of about ten months, before the development of its significantly larger Delmas project.

Keaton also reported that it expected earnings a share, and headline earnings a share for the six months ended September, to be between 1c a share, and 1,5c a share, respectively.

The company noted that no mining revenue was generated during the period under review, as it was still in the exploration phase of its mining operations.

The earnings a share and headline earnings a share were mainly as a result of the interest earned on the funds raised during the company’s seed capital raising (R312-million) in November 2007, and its listing (R100-million) in April this year.

Keaton would release its interim results on November 26, 2008.