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Forbes Coal reports lower Q3 production, resumes full output

15th January 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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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.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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