Disciplined management, cost control and a solid operating performance at the Somkhele anthracite mine have contributed to a 62% rise in JSE-listed Petmin’s headline earnings per share (HEPS) for the year ended June 30 to 24.28c, from 14.95c in the previous year.

CEO Jan du Preez noted in a conference call last week that, despite tough market conditions, the company still achieved good results, with the South Africa-based miner reporting a 30% increase in normalised earnings to R132.1-million and a 35% increase in net cash flow from operating activities to R901-million.

Turnover increased by 25% year-on-year to R1.3-billion.

“In terms of Somkhele, the mine is running well and we have maintained our safety record,” Du Preez said.

Saleable anthracite production at the mine increased by 19% to 1.3-million tonnes, while anthracite sales also rose by 19% to 1.2-million tonnes, predominantly owing to supply constraints affecting other producers.

Average prices for inland sales were unchanged from 2014, but average export prices dropped 2% in the year under review.

Seventy one per cent of Somkhele’s export sales were dollar-denominated, with the remaining 29% in rands. The average dollar price of export sales dropped by 4%, offset by a 9% weakening of the average exchange rate.

Meanwhile, production of energy coal from rewashed discard at Somkhele increased by 51% to 368 413 t and sales were up 102% to 352 255 t.

During the year, Petmin bought back 28.4-million of its own shares at an average price of R1.53 apiece, holding 32.8-million of its shares in treasury stock, representing 5.69% of the total issued shares.

The miner also invested an additional R29-million to acquire a greater stake in its now 35%-owned North Atlantic Iron Corporation, in Canada.

“We remain strongly cash generative and believe there is sufficient liquidity and funding available to finance our operations for the foreseeable future,” the company said in a statement to shareholders.