JOHANNESBURG (miningweekly.com) – South African coal miner Universal Coal has set its sights on doubling its projected half-yearly earnings before interest, taxes, depreciation and amortisation (Ebitda), as well as doubling coal output by the end of next year, as its flagship Mpumalanga-based coal asset achieved record first-quarter production and sales and its second operation was on track for commissioning at year-end.

The ASX-listed group on Tuesday reported that, at an estimated A$28-million annualised, the company’s Ebitda was projected to be nearly double its original forecast for the second half of the 2015 financial year.

During the quarter ended June 30, the group delivered Ebitda in excess of A$8-million and net cash from operations of A$8.5-million.

Domestic sales increased by 17% quarter-on-quarter to 503 547 t for the fourth quarter, while Universal’s first operation, Kangala mine, produced 1.7-million tonnes of saleable coal for the 2015 financial year.

Quarter-on-quarter, Universal increased its unrestricted cash reserves from A$2.5-million to A$6.7-million.

“We are entering a new and exciting growth phase. Not only are we on track to double production by the end of next year, but having secured corporate debt financing on more favourable terms than project financing means that the company’s net value will be significantly enhanced, demonstrating its ability to bring long-life, multiproduct coal operations to full production,” said Universal CEO Tony Weber.

This emerged as the company secured Section 11 Ministerial approvals for its second operation, the New Clydesdale colliery (NCC), providing the green light for first-phase production to start by the end of this year.

In April, the company secured a A$55-million senior debt finance facility to fund the final phase of capital development at NCC, which, at full capacity, would produce two-million tonnes of coal a year for high-end domestic markets.

A second-phase development to add an additional 800 000 t/y run-of-mine from underground sources would be considered once the first phase was in full production.

“From being an explorer with a resource base of less than 300-million tonnes of coal in 2010, Universal has grown to become a cash flow positive producer with a two-billion-tonne total resource inventory poised to double production by the end of 2016,” Weber stated.