Forbes Coal reports lower Q3 production, resumes full output
JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Forbes & Manhattan Coal (Forbes Coal) had resumed operating at full production following a labour disruption that impacted on the company’s third-quarter output and financial performance.
The company on Tuesday reported that total run-of mine (RoM) production from all operations for the quarter ended November 2012 slumped to 246 000 t – a 40% decrease on its output of 415 000 t during the quarter ended August 2012.
Revenue also took a knock – dropping to C$10.83-million from C$23.39-million in the previous quarter – owing to a 48% decrease in sales to 147 000 t from 286 000 t in the second quarter.
The company recorded a loss for the quarter of some C$2.29-million.
Forbes Coal president and CEO Stephan Theron said third-quarter results reflected a four-and-a-half-week labour disruption in November, in addition to the challenging international coal market.
“Labour interruptions at subsidiary Forbes Coal's Dundee properties had a significant negative impact on the operations and financial results of the company,” he conceded.
In addition, the coal supplier achieved an average selling price of C$73.91/t for its product, compared with C$81.73/t in the second quarter and C$94.03/t in the comparable 2011 period.
The company exported 73 000 t, with domestic sales of 74 000 t during the November quarter.
Further, RoM production from its South Africa-based Magdalena bituminous mine decreased by 35% to 184 000 t, from 284 000 t in the previous quarter.
The company’s Aviemore anthracite operation, in South Africa, also revealed depressed production of 62 000 t – a 53% drop from the 131 000 t produced in the second quarter.
Forbes Coal was in the process of increasing production at both the Magdalena and Aviemore mines using existing infrastructure and capacity.
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