JOHANNESBURG (miningweekly.com) – Coal and iron-ore miner Petmin on Tuesday noted that the solid performance at its Somkhele metallurgical anthracite mine continued for the nine months to March 31, with the mine having produced one-milion tonnes of anthracite, a 23% increase from the 827 983 t produced in the comparative period the year before.
The company further highlighted production cost had decreased by 9% year-on-year, from R694/t to R634/t.
Further, the 946 013 t of anthracite sold represented a 35% year-on-year increase, as demand for all products remained firm.
“Export anthracite prices have historically traded at a 10% to 15% premium to the API4 index and, during the quarter ended March, this premium has increased by up to 40%, owing to supply constraints in key international markets,” the company said.
Meanwhile, energy coal production had increased by 58% year-on-year to 270 801 t, driven by strong demand. During the nine months to March, Petmin sold 274 786 t of energy coal, compared with the 52 809 t sold in the nine months to March 2014.
Petmin had also received orders for 1.1-million tonnes of anthracite and for 346 000 t of energy coal.
OTHER OPERATIONS
During the reporting period, Petmin invested a further $1-million in North Atlantic Iron Corporation (NAIC), bringing its total investment to $21-million for a 36% shareholding in the iron sands to pig iron project in Labrador, Canada.
The site-specific feasibility study was under way and the final site selection decision was expected to be made by June. Petmin had an option to acquire up to 49.9% of NAIC, which was jointly owned by Grand River Ironsands Incorporated.
“It remains our intention to unbundle NAIC as soon as possible thereafter through the declaration and distribution of a dividend in specie of our stake in NAIC of about 50c a share,” Petmin noted.
Meanwhile, the company had also embarked on a share buy-back programme, acquiring 24.53-million shares at an average price of R1.56 apiece.
Together with a dividend of 3c a share, paid on November 21, 2014, Petmin had returned some R55-million to shareholders during the nine months to March 31.
The company added that it would continue to evaluate investment opportunities in thermal coal and other projects that meet its investment criteria and was reviewing opportunities that were cash producing and or near cash.