JOHANNESBURG (miningweekly.com) – South African thermal coal producer Continental Coal’s Vlakvarkfontein mine was set to achieve its third consecutive year of record thermal coal production, sales and earnings.
In the 11 months to end May, the mine produced 1.4-million tons of run of mine (RoM) coal, representing a 16% increase on the targeted output.
For the full 2013 financial year, the mine was expected to deliver 1.55-million tons of RoM coal, representing a 23% and 70% rise on the 1.24-million tons and the 890 000 t produced in the 2012 and 2011 financial years respectively.
Further, Continental expected thermal coal sales from Vlakvarkfontein for the full year to reach 1.33-million tons, up 5% on the 1.27-million tons sold in 2012 and 100% on the 600 000 t sold in 2011.
The mine was also forecast to reach sales revenue of about R244-million and a gross operating profit of R80-million for the 2013 financial year. Sales revenue for the 11 months ended May reached R224-million, while the gross operating profit for the 11 months amounted to R74-million.
“The Vlakvarkfontein coal mine has been a real success story for Continental. It was our first coal mine in operation, a true greenfield project development and first coal production was achieved within 12 months of its acquisition. The operation has fully repaid all its capital development costs and is forecast to continue to generate free cashflow and dividends to its shareholders over the next seven years,” Continental CEO Don Turvey said.
Meanwhile, the company said it expected the mine to produce 1.32-million tons of RoM coal in the 2014 financial year, while thermal coal sales of 1.1-million tons were expected to generate about R242-million in sales revenue.