JOHANNESBURG (miningweekly.com) – Australia-listed Universal Coal’s Kangala colliery, in Witbank, delivered record production for the quarter ended September 30, achieving 1.08-million tonnes run-of-mine (RoM).

During the quarter, the miner’s New Clydesdale colliery (NCC) also started production, contributing 31 200 t RoM, which took total production to more than 1.1-million tonnes RoM, with first sales achieved in the current quarter.

Universal CEO Tony Weber said the company was delighted to have its second operation running and contributing to production. “We expect to ramp up NCC to Phase 1 capacity of 900 000 t/y RoM production before the completion of the 2017 financial year, while progressing offtake arrangements to start the openpit operations in the near term.”

Weber added that Kangala continued to perform strongly, with production exceeding last quarter's record result. “We remain confident that the operation can maintain last year's 3.2-million tonnes produced,” he highlighted.

Weber further pointed out that, with NCC now on stream, and support from multiple cash flow streams, Universal was in a good position to continue growing.

"We are also pleased to have received the water licence at Brakfontein, paving the way to monetise this asset."

During the quarter, Universal achieved group operating cash flow of A$3.2-million, up 66% from the previous quarter's A$1.9-million.

This came off the back of continuing strong operational performance at the Kangala colliery and reduced corporate costs following the takeover lapse.

Receipts from customers were up 6.2%, while production, staff costs and administration costs were up 3% quarter on quarter.

Investments in property, plant and equipment of A$2.8-million, related largely to the development and commissioning costs of NCC, were up 47% from the previous quarter.

Further, cash outflows on financing activities related to the Investec debt facility for the Kangala colliery were in accordance with financing arrangements.

For the quarter, the Kangala colliery sold 573 824 t of domestic product, which was in line with the previous quarter’s results, while its quarterly export sales of zero were a result of current midseam sequencing in the geology of the Kangala colliery.