JOHANNESBURG (miningweekly.com) - Given the solid financial performance in the six months to December 31, ASX-listed Universal Coal has taken the decision to reward shareholders, declaring an interim dividend of A$0.01 a share unfranked.
This came on the back of net profit after tax having increased substantially to A$14.1-million and earnings before interest, taxes, depreciation and amortisation (Ebitda) having increased by 162% to A$29.6-million for the six months under review.
Earnings a share were A$0.02 apiece.
The strong financial performance was underpinned by solid coal sales of 2.3-milion tonnes, with 1.96-million tonnes being domestic sales and 370 000 t being export sales generated from the company's two operating mines in South Africa - Kangala Colliery and New Clydesdale Colliery (NCC).
"This has been a game-changing half[-year] for Universal Coal with our two producing coal mines delivering an exceptional financial result, positive cash flows, and thus more dividends for shareholders. We also completed the acquisition of an additional 51% of Eloff Mining Company, which will deliver potential increased sales and longevity to Kangala in the future.
"Our strategy of becoming a midtier, multimine coal producer remains well and truly on track, underpinned by a healthy balance sheet and a pipeline of organic growth and attractive acquisition opportunities that will strengthen our production profile and revenue streams. With improved market conditions for the coal sector, we are progressing numerous opportunities to deliver more shareholder value," CEO Tony Weber said on Monday.
The miner said its performance during the half-year would further allow the company to continue delivering revenue and earnings growth for the full year and to meet coal sales targets.
The company expects to achieve its full year sales target of 4.6-million tonnes for the year ended June 30.