TORONTO (miningweekly.com) – JSE- and TSX-listed Forbes Coal has lifted its first-quarter run-of-mine (RoM) output from its Magdalena bituminous and Aviemore anthracite mines, in South Africa, by 23% quarter-on-quarter to 447 000 t, achieving record production in April and May.

The RoM output during the quarter ended May 31, was significantly more than the 364 000 t produced in the fourth quarter, and also represented a 16% year-on-year increase.

Forbes said its first-quarter RoM output was equal to 32% of the total RoM production of 1.4-million tonnes in the 2013 financial year, giving the company “great momentum” for the rest of the year.

The total sales for the quarter totalled 261 000 t, a 55% quarter-on-quarter increase from 168 000 t in the fourth quarter and a 12% year-on-year increase over the first quarter of 2013, when the company sold 234 000 t.

RoM production at Aviemore totalled 138 000 t, an increase of 62% quarter-on-quarter, which saw the mine produce 85 000 t, and achieve record production in April and May.

The Magdalena underground RoM production totalled 227 000 t in the period, which was a 16% improvement over the previous quarter when the mine produced 196 000 t. The Magdalena operation also recorded record output during April and May.

Forbes reported the total saleable production for the first quarter was 253 000 t, an 18% increase over fourth-quarter saleable output of 214 000 t, excluding bought-in coal in that quarter. No coal was bought in during the first quarter.

Forbes exported 142 000 t, more than double that of the previous quarter. Domestic sales totalled 119 000 t, an 18% quarter-on-quarter increase.

"The company has experienced a steady and consistent pace of growth in the last four months and we are tracking well against our annual production targets. A continued incremental increase in production each month is the focus for the remainder of the year. We've established great momentum,” Forbes president and CEO Stephan Theron said.

Forbes reported weaker financial results for the year ended February 28, weighed down by a softer coal export market and lower production, owing to third-quarter labour disruptions.

The company 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.