SACMH widens H1 loss as production remains suspended
JOHANNESBURG (miningweekly.com) – Coal producer South African Coal Mining Holdings (SACMH) widened its net loss for the six months ended June 30, 2013, to R63-million, from the loss of R35-million reported for the first half of 2012.
This was the result of a continued suspension of operations at the group’s Umlabu colliery, pending the finalisation of the water use licence application currently lodged with the Department of Minerals and Resources (DMR).
“No commitment has been received from the DMR with regard to the finalisation of the water use licence,” the company said in a statement on Thursday.
All assets and infrastructure were currently being maintained under a care-and-maintenance programme, while the beleaguered miner said it was leveraging its logistical and infrastructural assets to generate rental income to offset the costs incurred while operations remain suspended.
Company turnover contracted from R135.7-million in the first half of 2012 to R7.57-million for the first six months of the current financial year, while gross profit slumped from R8.4-million to R1.7-million over the same period.
Despite this, the group's major shareholder JSW Energy advanced a further R2.1-million for working capital purposes.
“JSW Energy has confirmed its intention to continue financial support of SACMH and, in terms of the loan agreement, JSW Energy has undertaken not to accept repayment of its loan accounts until such stage as the company’s assets, fairly valued, exceed its liabilities,” SACMH said in a statement.
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