JOHANNESBURG (miningweekly.com) – Dual-listed Forbes Coal on Thursday reported weaker financial results for the year ended February 28, 2013, weighed down by a softer coal export market and lower production, owing to third-quarter labour disruptions.

The company, which is listed in Johannesburg and Toronto, posted revenue of $68.5-million and gross profit of $900 000, compared with revenue of $104.5-million and gross profit of $17.4-million achieved in the 2012 financial year.

The average selling price of coal decreased from $96.59/t in the 2012 financial year to $81.87/t in the 2013 financial year, as a result of a softening export coal price.

On the upside, operating expenses for the twelve months were $58.58-million, or $70.02/t, compared with $71.06-million, or $65.69/t, in the prior financial year.

Forbes president and CEO Stephan Theron said the reduction in operating expenses provided some relief and cost containment in the face of declining profitability.

“In addition, production losses as a result of the labour disruption were offset by a record production month in February, with a total of 151 000 t of coal produced – a significant achievement over the 117 000 t monthly average of the last 12 months,” he commented.

This drove total run-of-mine production from all operations for the year to 1.4-million tonnes, a 9% increase on the 1.29-million tonnes produced in 2012.

As a result, total saleable coal, including bought-in coal, for the 12 months increased by 4% year-on-year to 958 054 t.

Theron said that the company would remain focused on its plans to expand production at its Magdalena and Aviemore operations by increasing wash plant recovery rates and improving operational efficiencies.

The overall 2014 saleable production target was set at 1.15-million tonnes of coal, an increase of 20% over the saleable production reported for 2013.

“We are targeting saleable production of 845 000 t at Magdalena and 300 000 t of saleable production at Aviemore for fiscal 2014, and have outlined a number of initiatives to accomplish this goal,” he commented.