FORBES & Manhattan Coal Corporation, the JSE-listed and Canada-based mining company, grew production, revenue and profit in its second quarter of financial 2013 compared with the first quarter.
"Strong operations continue to support the financial position of the company, with continued increased production at both Magdalena and Aviemore," the company said in a statement on the release of its quarterly and six-month results.
Revenue for the three months to August 31 increased 12% to C$23.4m from C$20.8m in the first quarter.
Earnings before interest, taxes, depreciation and amortisation (ebitda) increased 11% to C$2.72m against C$2.45m in the first quarter.
Forbes Coal operates a subsidiary that holds majority stakes in the Magdalena bituminous coal mine and Aviemore anthracite operations in KwaZulu-Natal.
Subsequent to August, Forbes Coal also acquired Rio Tinto’s 74% interest in Zululand Anthracite Colliery and Rio’s 74% stake in Riversdale Anthracite Colliery, an undeveloped resource, for about R440m.
Run-of-mine production in the second quarter increased 7% to 414,551 tons compared with 387,075 tons in the first quarter, an increase that was due mainly to there being more production days in the second quarter.
Sales of coal and anthracite products grew 22% to 286,185 tons, quarter on quarter.
But run-of-mine production was below the targeted 436,910 tons due to difficult geology, overloading of the underground conveyor system and power supply interruptions.
Cash at the end of the six months came to C$14.6m, up from C$8.1m
Production at Magdalena was up 8% quarter on quarter, while production at Aviemore increased 5% on the same basis.
"We believe the company is going from strength to strength in terms of performance and achieving its growth strategy," president and CEO of the company Stephan Theron said.
Forbes Coal’s mines at Magdalena and Aviemore have a projected life span of more than 20 years.
The company’s aim is to increase production at both mines so that production is tripled in the next three years, from 2010 production levels.
The company has not experienced the tense labour relations plaguing much of the South African mining industry, but it would pose a risk to production if it did, the company said.
Revenue for the six months to August fell 19% to C$44.2m, compared with C$54.9m in the comparable period last year. Gross profit fell to C$4.2m from C$9,6m.
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