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Vlakvarkfontein to produce record 1.55Mt in FY2013

12th July 2013

By: Creamer Media Reporter

  

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South African thermal coal producer Continental Coal’s Vlakvarkfontein mine is set to achieve its third con- secutive year of record thermal coal produc-tion, sales and earnings.

In the 11 months to end May, the mine produced 1.4-million tons of run-of-mine (RoM) coal, representing a 16% increase on the targeted output.

For the full 2013 financial year, the mine is expected to deliver 1.55-million tons of RoM coal, representing a 23% and 70% rise on the 1.24-million tons and the 890 000 t produced in the 2012 and 2011 financial years respectively.

Continental expects thermal coal sales from Vlakvarkfontein for the full year to reach 1.33-million tons, up 5% on the 1.27-million tons sold in 2012 and 100% on the 600 000 t sold in 2011.

The mine is also forecast to reach sales revenue of about R244-million and a gross operating profit of R80-million for the 2013 financial year. Sales revenue for the 11 months ended May reached R224-million, while the gross operating profit for the 11 months amounted to R74-million.

“The Vlakvarkfontein coal mine has been a real success story for Continental. It was our first coal mine in operation, a true green-field project development and first coal production was achieved within 12 months of its acquisition. “The operation has fully repaid all its capital development costs and is forecast to continue to generate free cashflow and dividends to its shareholders over the next seven years,” Continental CEO Don Turvey says.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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