JOHANNESBURG (miningweekly.com) – ASX-listed Universal Coal said on Tuesday it expected to report significantly higher half-year earnings, owing to improved operational performance and higher demand and sales volumes from its main customer.
The company, which owns thermal coal assets in the Witbank coalfield of South Africa, stated that its earnings before interest, taxes, depreciation and amortisation (Ebitda) for the June quarter would be at least 50% higher than that of the previous quarter.
“The company continues to go from strength to strength, as strong operational performance at Kangala delivers excellent cash flow, with group Ebitda for the half-year ended June 2015 expected to be in excess of A$13-million,” commented CEO Tony Weber.
He stated that Universal Coal, as a result, was well placed to deliver its next operation, the New Clydesdale colliery, in Mpumalanga, before the end of the year. “Once running at steady state, we expect group production to double to almost five-million tonnes a year on a run-of-mine basis.”
New Clydesdale will produce two-million tonnes a year for domestic markets over a ten-year period.
Universal Coal recently secured R525-million in funding to progress the New Clydesdale mine development programme.