https://www.miningweekly.com

Buffalo Coal's full-year earnings fall

14th April 2020

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

Coal miner and supplier Buffalo Coal reported a consolidated profit of R33.2-million and R36.8-million in the fourth quarter of 2019 and 2019 financial year.

This compares to a consolidated profit of R26.5-million in the fourth quarter of 2018, and a consolidated loss of R68.4-million in the 2018 financial year.

The 154% increase in profits for 2019 compared to 2018 was mainly the result of an R8-million impairment loss of property, plant and equipment in 2019 compared to R67.5-million in 2018; R7.8-million of net foreign exchange gains in 2019 compared to R57.4-million net foreign exchange losses in 2018; a positive fair value adjustment on conversion option and warrant liability of R38.4-million in 2019 compared to R900 000 in 2018; marking a 32% decrease in general and administration, and a 33% decrease in finance expenses over comparative periods.

The improvements year over year was partially offset by a 51% decrease in gross profit which was mainly driven by the closure of the Magdalena mine in the third quarter of 2018. 

The company owns 100% of the shares in Buffalo Coal (BC) Dundee, which has an interest in two operating coal mines in South Africa.

BC Dundee indirectly holds a 70% interest in the BC Dundee Properties through its 70% interest in Zinoju Coal, which holds all of the mineral rights with respect to the BC Dundee Properties.

The remaining 30% interest in Zinoju is held by South African black economic empowerment partners.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION