Universal forecasts higher outputs

10th October 2018 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

Universal forecasts higher outputs

Photo by: Bloomberg

PERTH (miningweekly.com) – South Africa-focused coal miner Universal Coal has forecast a 29% increase in 2019 earnings before interest, taxes, depreciation and amortisation (Ebitda), on the back of a 28% increase in sales tonnage and based on the current international coal pricing and foreign exchange forecasts.

Ebitda for the 2019 financial year is expected to reach A$93-million, while sales tonnes would increased to six-million tonnes a year, with increased tonnage from the New Clydesdale Colliery and the inclusion of the North Block Complex from January.

Universal is in the process of acquiring the North Block Complex from South African producer Exxaro, with the deal likely to be settled in the second quarter of 2019.

Meanwhile, Universal on Wednesday said that the company has an estimated A$12-million of capital requirements for the year, including a combination of maintenance capital expenditure and selected mine improvement works for the current operations.